Since the beginning of the full-scale invasion of the Russian military on the territory of Ukraine, public associations, charitable and religious organizations (non-profit organizations) have been supporting the Armed Forces of Ukraine and other military formations, law enforcement (special) bodies, civil defense bodies and territorial communities, as well as providing assistance to Ukrainians that have suffered or may suffer from Russia's armed aggression.
In addition, non-profit organizations have considerable potential to contribute to post-war reconstruction and development in the country. Since public associations, charitable and religious organizations work in all spheres of life and economy of our country, they can be a driving force in activities aimed at:
- restoration and development of transport, medical, social, communal, industrial, residential and energy infrastructure, as well as communication infrastructure, military infrastructure and the military-industrial complex;
- structural modernization and recovery of the economy, overcoming unemployment, support for families with children, as well as the vulnerable population and persons who found themselves in difficult life circumstances as a result of the war;
- restoration and protection of cultural heritage;
- development of proposals for priority reforms that should be adopted and implemented both during the war and after it;
- implementation of other measures aimed at the recovery and development of the country.
In order to support non-profit organizations, the Verkhovna Rada of Ukraine adopted as a basis the draft Law of Ukraine No. 7501, which provides for the introduction of the interest deduction mechanism. That is, every person who is a taxpayer of personal income tax will be able to transfer 2% of the paid tax to a non-profit organization.
Along with this, the draft Law proposes to make changes to the budget legislation, in terms of determining percentage deductions of personal income tax for the benefit of non-profit organizations as funds that do not belong to budget expenditures.
At the same time, the specified act provides that the Treasury of Ukraine will report on the percentage deduction of personal income tax for the benefit of non-profit organizations in accordance with the procedure established by law, and will also carry out percentage deduction of personal income tax in support of non-profit organizations.
Violetta Fedorko, lawyer at Dynasty Law & Investment