Can an individual entrepreneur transfer money to the Armed Forces of Ukraine from their business account? – answered by the State Tax Service
An individual entrepreneur can transfer charitable assistance to the Armed Forces of Ukraine directly from their business account and at the same time will not lose the right to remain on the simplified taxation system. At the same time, the Main Department of the State Tax Service in the Kirovohrad region reminded that in such a case the charity donor is the individual person, not the individual entrepreneur.
Who is considered a charity donor by law
Charitable activity is considered voluntary personal or property assistance to achieve goals defined by law without receiving profit, reward, or compensation on behalf of or by order of the beneficiary.
Subjects of charitable activity are charitable organizations, as well as other donors and beneficiaries.
Why the donor is an individual person, not an individual entrepreneur
Tax authorities pointed out that according to the Civil Code of Ukraine, a person as a participant in civil relations is an individual, and the right to entrepreneurial activity is realized only after state registration.
Therefore, regardless of the chosen taxation system, the donor is the individual person, not the individual entrepreneur.
At the same time, charitable activity cannot be carried out within the framework of the individual entrepreneur’s business activity.
What rules apply to bank accounts
The State Tax Service reminded that the Instruction of the National Bank of Ukraine No. 162 provides for the opening of separate accounts for entrepreneurial activity, independent professional activity, and the personal needs of an individual.
Legislation prohibits using current and payment accounts opened for personal needs to conduct operations related to entrepreneurial or independent professional activity.
Only operations not related to business can be conducted through such accounts.
Is it possible to transfer assistance to the Armed Forces of Ukraine from a business account
The tax service noted that the legislation does not establish restrictions on the free disposal by an individual registered as an individual entrepreneur of funds received from economic activity and credited to the business account.
Therefore, an individual entrepreneur does not lose the right to remain on the simplified taxation system if they transfer charitable assistance to the Armed Forces of Ukraine directly from their business account.
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