Dary v souvislosti s děním na Ukrajině v roce 2023

Donations in connection with the events in Ukraine in 2023

During 2022, a new law came into force to provide tax support for donations made in connection with the armed conflict in Ukraine. The law was originally approved only for donations made in 2022. Now the government has approved an extension also for 2023 (item 14 of the Cabinet meeting of 11 January 2023).

Just a brief reminder - the law has newly regulated the following areas in terms of support for donations to Ukraine:

1. Deduction of donations from the tax base

• The range of entities to which a donation may be made has been expanded,
• the range of purposes for which a donation may be made has been expanded,
• the circle of subjects who can apply the deduction has been expanded,
• the period during which the increased maximum limit for the deduction of gifts of 30% of the tax base can be used has been extended.

2. It allowed, under certain conditions, to claim expenses for non-monetary donations as tax deductible expenses.

3. For individuals as recipients of donations

• The law introduced an exemption of the employee's income in the form of accommodation if it is provided by the employer to the employee and his/her family members residing in the territory of Ukraine, due to leaving Ukraine in connection with the armed conflict on its territory.
• The exemption of gratuitous income has been extended to gratuitous income provided for the purpose of supporting the defence efforts of the State of Ukraine (originally only humanitarian/charitable purpose or from a public collection).

For completeness, we also provide a link to the Questions and Answers on the law, which are updated by the Ministry of Finance.

We will continue to monitor this area for you. If you have any questions, please contact the author of this article or the EY tax team you are working with.

Author:

Hana Cicvárková