Volunteer transfers to a card — when you won't have to pay PIT and military tax
Volunteer collections on bank cards may not be subject to personal income tax and military tax. At the same time, it is necessary to comply with the requirements established by law.
In Ukraine, a volunteer is considered an individual who voluntarily and free of charge provides assistance for socially useful purposes. This is defined by the Law of Ukraine "On Volunteer Activity."
Volunteer activity can be carried out both through organizations and institutions that engage volunteers, and independently. In the case of individual activity, the volunteer is obliged to inform the recipients of assistance that they do not cooperate with the relevant organization. For certain areas of volunteering, the law provides certain restrictions.
The procedure for taxing individuals' income is determined by Section IV of the Tax Code of Ukraine. In general, income received both in Ukraine and abroad is subject to taxation, but Article 165 of the Tax Code contains a list of incomes that are not included in taxable income.
Thus, according to subparagraph 165.1.54 of the Tax Code, funds or charitable assistance received by volunteers registered in the Volunteer Register are not taxable if these funds are directed to help servicemen, combatants, other persons defined by the Tax Code, or transferred through state bodies, military formations, or other institutions defined by law.
In addition, documented expenses of the volunteer related to providing such assistance are exempt from taxation. This tax benefit will apply until December 31 of the year following the end of martial law, anti-terrorist operation, or measures to ensure national security and defense.
The tax authorities note that if a volunteer collects funds in their own account and uses them to assist persons defined by the Tax Code, such receipts are not considered their taxable income.
At the same time, if the collected funds are subsequently transferred to a charitable foundation, and not directly to persons or institutions defined by the Tax Code, the tax benefit does not apply. In this case, the received amounts may be considered the volunteer's income and taxed on a general basis.
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