In this turbulent period, when the anti-terrorist operation is continuing in the East of country and thousands of people need help, the charity issue has been of particular relevance.
The round table “Ukraine is Diverse - Ukraine is United: Charity and Business – the basis for the civil society formation” has taken place in “Ukrinform” National Information Agency The business event has been organized by the All-Ukrainian Charity Fund “For You” with the support of CIVICUS organization.
The business representatives, heads of charitable institutions and tax administration officers have participated the round table work. “De Visu” Group experts have been invited to join the discussion on the companies’ exemption from taxation, tax advantages for business providing the charity support, charity effectiveness in Western European countries and the USA.
The participants of the event focused the most on the analysis of Ukrainian legal system that regulated the charity.
The business owners have emphasized on double tax liabilities, when goods or services provided and the tax credit adjusted.
Whereas, the recipients of charity support told that the amounts of gratuitous financial assistance as well as costs of goods, works and services received free of charge by the taxpayer, but not lower than their regular price, shall be deemed to be the income for the tax purposes dated de facto acquisitions or receipts to the bank account. The special rules are provided for non-profit organizations. They are entitled to include additionally to the expenses not more than 4% of taxable income of the previous financial year.
The representatives of charitable institutions said that the exclusive systems of rebate for charity providers work in the USA and in the Western European countries. For example, the encouragement of sponsorship via withdrawal of the amount spent on the advertising and marketing operations, from the taxable volumes, is provided in Belgium and in Great Britain. There is taxation system in France, which provides for the decrease of business taxes by 60% in case of their philanthropic support.
The round table participants have concurred that the legislative conditions haven’t been encouraging the development of charity in Ukraine just yet. Those who wish to help either refuse from the charitable activities at all or do it informally, transferring the cash directly to those who need them.
The participants of the event have agreed to prepare the recommendations for making amendments to the Tax Code of Ukraine on providing and receiving of charity support in order to liberalize the domestic legislation and to increase the philanthropy in country.
