The Ministry of Finance has prepared a draft Income Tax Law, according to which the income tax-free donation to Ukraine will be extended until the end of 2023

At the beginning of September, we proposed to the Ministry of Finance to extend the exemption that does not tax targeted donations to help Ukraine.

According to the current income tax law, a resident legal entity does not pay income tax on donations and gifts made for the preservation of the territorial integrity and sovereignty of Ukraine and for the provision and organization of humanitarian aid for specific purposes, if they are made from February 24 to December 31, 2022 to the following legal entities:

  1) MTÜ Eesti Pagulasabi (NGO Estonian Refugee Aid);
  2) MTÜ Mondo (NGO Mondo);
  3) Ukraina Kultuurikeskus (Ukrainian Cultural Centre);
  4) Riigikaitse Edendamise Sihtasutus (National Defence Promotion Foundation);
  5) Eesti Punane Rist (Estonian Red Cross);
  6) Päästeliit (Rescue League);
  7) Rotary Klubi Tallinn Vanalinn (Rotary Club Tallinn Old Town).

We have received a reply that the Ministry of Finance has prepared a draft Income Tax Law, according to which the possibility of making gifts and donations without income tax will be extended until the end of 2023 in order to preserve the territorial integrity and sovereignty of Ukraine and to provide and organize humanitarian aid for specific purposes.

The Chamber’s appeal can be read here