Amidst the ongoing martial law, the volunteer movement in Ukraine remains one of the key pillars of state support. However, despite heroism and selflessness, many activists face legal nuances that can turn into unexpected financial losses. The Main Directorate of the State Tax Service in the Odesa region has clarified critically important rules for taxing charitable aid, which come into force against the backdrop of tightened control over financial flows.
Volunteer status and tax benefits
According to current legislation, volunteer activity is defined as voluntary, non-profit, and socially oriented. The state, understanding the importance of this work, provides special tax benefits for volunteers. The key condition for their application is the official inclusion of an individual in the Register of Volunteers. It is this document that becomes the "pass" to the world of tax-free charity.
Charitable aid is not taxed if it is transferred directly from the volunteer to the recipient. It is important to note that the exemption from taxation applies not only to money but also to property donated. However, this privilege works only with strict adherence to the intended use of funds.
Who can receive aid without taxes
Tax authorities have clearly outlined the list of recipients to whom the transfer of funds will not be considered the volunteer's income. These categories include military personnel, law enforcement officers, participants in hostilities, as well as victims of the war and their families. Aid can be transferred in two ways: directly to the hands of those in need or through official state structures — the Ministry of Defense, National Guard, SBU, or police.
At the same time, only the amount actually used for charity, as well as documented expenses of the volunteer, is not taxed. This means that every penny spent must be justified and recorded to avoid claims from fiscal authorities.
Contradictory data
Questions regarding the taxation of volunteer activity often cause discrepancies in interpretation. On the one hand, the tax service emphasizes that aid is not taxed if it is directed for a specific purpose. On the other hand, many volunteers believe that transferring funds to charitable foundations automatically exempts them from taxes. However, according to the clarifications of the DTS, this is not always the case.
If a volunteer collects funds into their personal account and then transfers them to a charitable foundation or purchases a vehicle for transfer to the foundation, tax benefits do not apply. In this case, the amount of funds collected is considered the income of an individual and is included in their total annual taxable income. This creates a situation where good intentions can lead to additional financial obligations.
Duration of benefits
The specified rules are in effect throughout the period of measures to ensure the defense of the state and until the end of the year following the year of their completion or the lifting of martial law or a state of emergency. This means that benefits will be available to volunteers throughout the time the country is at war, and for one more year after its end.
It is also worth noting that Ukrainians can get back part of the taxes for charity. The tax deduction includes contributions and donations to non-profit organizations, however, their total amount cannot exceed 4% of the annual taxable income. This is another way to support volunteers, which allows them to partially compensate their expenses.
Conclusions and recommendations
Thus, the key to applying benefits is the targeted use of funds — directly for the benefit of recipients specified by law. Volunteers are recommended to carefully document all their expenses and transfers of aid to avoid possible problems with the tax office. It is also important to closely monitor changes in legislation, as rules may be adjusted depending on the current situation.
