The CMU Resolution No. 112 "On the Approval of the List of Funds, Goods (Works, Services), and the Amount (Value) of Charitable Assistance that is Exempt from the Taxable Income of Individual Income Taxpayers" has been amended.
From now on, there is an expanded list of goods and services of charitable assistance that can be transferred tax-free (without personal income tax and social security tax). UCIPR experts joined the process of creating the resolution's text and advocating for its adoption.
What has changed?
A number of goods and services have been added to the list, and the specifics of martial law assistance have been taken into account. In particular, these categories of citizens are exempted from personal income tax and military service tax:
- servicemen of the Armed Forces of Ukraine, the National Guard, the Security Service of Ukraine and the Defense Forces of Ukraine;
- families of combatants who were injured, killed or went missing
- IDP individuals;
- participants of mass public protests in Ukraine who suffered health damage while participating in the Revolution of Dignity in 2014 or their family members;
- IDPs who resided in the Autonomous Republic of Crimea.
These persons are exempted from taxation if they receive goods or services in accordance with the updated CMU Resolution No. 112, e.g:
- personal protective equipment, first aid kits and medicines;
- reconnaissance and UAV equipment and evacuation services;
- food and many other goods that are relevant today.
The full list of updates can be found here.
The list excludes references to the codes of the State Classifier of Products and Services (DK 016:2010). This will facilitate the transfer of aid by eliminating bureaucratic barriers.