To be a non-profit organization for tax purposes, a legal entity has to be included in the Register of non-profit institutions and organizations (hereinafter – the Register). The rules for entry into this Register are stipulated in item 6 of the Procedure for keeping the Register of non-profit institutions and organizations, inclusion of non-profit enterprises, institutions and organizations in the Register and exclusion from the Register approved by Cabinet of Ministers resolution No. 440 of July 13, 2016 (hereinafter – Procedure No. 440).
Documents for submission
To be entered to the Register, the legal person must submit to the supervisory authority:
- registration application in form 1-PH in accordance with Annex 1 to Procedure No. 440;
- certified by the signature of the head or representative of such organization and sealed (if any) copies of the constituent documents of the non-profit organization (except those published on the portal of electronic services in accordance with the Law of Ukraine “On state registration of legal entities, individuals – entrepreneurs and public organizations” No. 755-IV of May 15, 2003).
At the same time, there are features of filing registration documents for certain types of non-profit organizations. Namely:
- housing associations must submit to the tax authorities copies of the documents confirming the date of commissioning of the completed residential building and the fact of construction or purchase of such dwelling house certified by the signature of the head or representative of such cooperative and sealed (if any);
- non-profit organizations operating on the basis of the founding documents of a higher-level organization, in accordance with the law, submit together with the registration application in the form of 1-PH certified by the signature of the head or representative of such organization and a sealed (if any) copy of the document confirming the inclusion in the higher-level organization level and granting the right to act under the founding documents of such higher-level organization.
Ways of submitting documents
Documents for entry into the Register can be submitted (sent) by a non-profit organization in one of the following ways:
- personally by the head or representative of a non-profit organization (in both cases with documentary confirmation of the person and authority vested) or authorized person;
- by mail with delivery note and attachment description;
- means of electronic communication in electronic form, subject to the condition of registration of the electronic signature of the accountable persons in accordance with the procedure established by law, if the constituent documents are published on the portal of electronic services;
- to the state registrar in addition to the application for state registration of legal entity or changes to information about a legal entity. Such statement must be transmitted electronically in accordance with the established procedure by the technical administrator of the Unified state register of legal entities, individuals – entrepreneurs and public organizations to the controlling authorities together with the information on state registration of a legal entity or changes to information about a legal entity in accordance with the legislation.
Registered institutions and organizations (newly established) that have filed in due course the documents for entry in the Register during or within 10 days from the date of state registration and which according to the results of consideration of these documents are entered in the Register, for tax purposes are considered non-profit organizations from the date of their state registration. .
Verification
After the organization submits the documents for entering the Register, the tax officials start to check the information contained in these documents (item 8 of Procedure No. 440). And if all is well, they include the organization in this Register within three working days from the date of receipt of the registration application and the documents attached to it by the controlling body, and give it a mark of non-profitability (referring to a certain type of non-profit organizations).
How to get results
Tax authorities do not inform the organization that it has become non-profit, that is, entered the Register. Therefore, to find out if a business has become non-profit, you can either:
1) through an user account, having checked your registration data;
2) contacting the controlling authority with a request to obtain an extract from the Register.
The request for extract from the Register shall be submitted in the form in accordance with Annex 3 to Procedure No. 440 either:
- personally by a non-profit organization representative or an authorized person;
- sent by mail to the controlling body at the main place of accounting of the non-profit organization;
- by electronic means of communication in electronic form, subject to the condition of registration of electronic signature of the accountable persons in accordance with the procedure specified by law. However, this can only be done by those non-profit organizations that have concluded an agreement on the recognition of electronic documents with the appropriate controlling body.
All sections of the query are filled. The request specifies the code according to the non-profit organization’s EDRPOU, which is the criterion for searching information in the Register. The request must be signed by the manager or the person authorized to sign the non-profit organization's documents, stating the date.
The controlling authority must provide the non-profit organization with the extraction free of charge within three working days after the day of receiving such request. Such extract contains information about non-profit organization or lack of information in the Register. The extract contains information from the Register that is current on the date and time of its drawing, and is effective until the Register is amended in the part related to the specified non-profit organization.
When submitting an electronic request, the extract will be sent to the e-mail address from which the request was received, with the electronic seal of the controlling authority.
Typical errors
An enterprise is not included in the Register if (item 8 of procedure No. 440):
- submitted an incomplete package of documents (it is given above);
- does not meet the requirements set out in paragraphs 133.4 of the Tax Code of Ukraine.
Taxpayers will informe of the fact that the company has not been included in this Register by a decision on refusal to include in the Register. Having received such a refusal, one should not panic. It is necessary to eliminate the deficiencies and re-submit the documents to the supervisory authority, without changing the provisions of the constituent documents, to which the supervisory authority has not commented. The resubmitted application will be considered within three business days of receipt.
