The Parliament of Estonia Approved a Law Allowing Legal Entities to Make Tax-free Donations to Ukraine Until the End of the Year

The Parliament of Estonia approved the third reading of the draft, which exempts from income tax donations made by a legal entity for the purpose of supporting Ukraine in the period from February 24 to December 31, 2022, regardless of the amount of the donation. This means that when making donations to, for example, the National Defence Promotion Foundation, the current limits do not have to be taken into account. Seven organizations were included in the law through which donations can be made tax-free. 

Mait Palts, General Director of the Estonian Chamber of Commerce and Industry and Board Member of the National Defence Promotion Foundation, said that the proposal to amend the law came from the Chamber of Commerce on February 26. ‘Various parties are to be thanked for the fact that the changes were introduced into the law in almost one month, because it often happens that the necessary drafts remain in the corridors of bureaucracy for years. It is good to say that it did not happen this time,’ he said.  

The associations that can intermediate tax-free donations are: 

• National Defence Promotion Foundation; 
• Tallinn Old Town Rotary Club; 
• Ukrainian Cultural Centre; 
• Estonian Red Cross; 
• Estonian Refugee Assistance; 
• MTÜ Mondo; 
• Rescue Association. 

On February 27, The National Defence Promotion Foundation, founded by the Estonian Chamber of Commerce and Industry and the Ministry of Defence, together with the Estonian Reserve Officers' Assembly, launched a charitable donation campaign (www.koda.ee/ukraina) supporting the purchase and urgent shipment of medical equipment to war centre and, in the long term, the treatment of the wounded in Estonia or allied countries. So far, donations have been collected in the amount of 1,487,703.97 euros. The foundation has supported the delivery of 12 fully equipped ambulances to Ukraine, the logistics of the ambulances have been secured by the Tallinn Old Town Rotary Club. Crisis psychologists responding to refugees are supported weekly with a variety of tools and supplies. 9,000 first aid kits are currently being assembled for doctors in the Ukrainian Defence Forces. The foundation has promised to support its acquisition. In terms of children's medical support and aids, the foundation is also in contact with the Tallinn Children's Hospital Support Fund, which has received requests for help from its contacts in Ukraine, and the foundation has also confirmed that it will help to acquire equipment if necessary. 

‘Entrepreneurs have played a very important role in delivering donations to recipients, responding quickly to various requests for cooperation, often outside normal working hours or processes. The impact of such assistance is many times greater than we can imagine, especially in a situation where the presence of a tourniquet or a medical device is directly a matter of life and death,’ said Palts, thanking all the entrepreneurs who have supported and are supporting Ukraine in the war with Russia. He also emphasized that today in Ukraine it is not just a war in Ukraine, but a common struggle for all of us for common values and freedom. 

Information required for donation through the National Defence Promotion Foundation: 

By calling the donation phone By calling 900 5380 you donate 5 € By calling 900 2380 you donate 25 €

By bank transfer to a special-purpose current account Beneficiary’s name: RIIGIKAITSE EDENDAMISE SA  Swedbank: EE162200221078603616  Payment description: Toetus Ukrainale

Legal entities should indicate in the payment description "support for Ukraine"
Natural persons should indicate in the payment description "support for Ukraine" and if an income tax refund is requested, they should also indicate the name and personal identification code of the person for whom the donation is made.