The threshold for charitable donations has been doubled
14/03/25
On 25 February 2025, the Verkhovna Rada adopted the draft law No. 12328-d "On Amendments to the Tax Code of Ukraine Regarding the promotion of charity during the martial law" (hereinafter - "The threshold for charitable donations has been doubled Draft Law").
Under the new rules, the threshold for deductible charitable donations for enterprises, for corporate income tax purposes, will be increased to 8% of the business’s taxable profit for the previous year (currently 4%):
The incentive is introduced temporarily, starting from 2025 until the end of the calendar year in which the martial law is lifted or cancelled;
To apply the increased threshold, more than 4% of the company’s taxable profit for the previous year must be donated to charitable organizations.
Additionally, the draft law proposes to equalize the PIT implications on in-kind and in-cash charitable donations.
The draft law will come into force after it is signed by the President.
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