Recipients of our humanitarian aid often ask whether it impacts their income calculation and if it is taxable. We consulted with the Foundation’s leading lawyer, Oksana Savytska, and prepared answers to the most frequently asked questions.
Do I need to pay taxes on multi-purpose cash assistance from the CF SSS?
Aid provided to people affected by the armed aggression of the Russian Federation during martial law is not included in taxable income and is not subject to taxation.
Charitable assistance is not considered taxable income if:
- It is distributed through the bank accounts of charitable organizations to the recipient’s card (which is how the Foundation operates);
- The organization distributing the aid is listed in the Register of Non-Profit Organizations (CF SSS is listed there);
- It is received by people affected by the armed aggression of the Russian Federation during martial law (the Foundation assists only such people).
Do I need to pay taxes on humanitarian kits from the CF SSS?
Humanitarian aid provided by the CF SSS in the form of medical, hygiene, and food kits does not count as taxable income and is not subject to taxation if the total aid received does not exceed 500 times the minimum wage in a year (2022 — 3.25 million UAH, 2023 — 3.35 million UAH, 2024 — 3.5 million UAH). This means that such charitable assistance is not included in taxable income and is not subject to taxation if the recipient of the charitable assistance belongs to one of the following categories:
- People who live (used to live) on the territory of settlements where hostilities are taking place and/or were forced to leave their place of residence due to the anti-terrorist operation;
- People who lived in the Autonomous Republic of Crimea;
- People who live (used to live) in the settlements defined by the Order of the Ministry of Reintegration No. 75, and from 2023 — by the Order of the Ministry of Reintegration No. 309, and/or were forced to leave their place of residence due to hostilities;
- Combatants;
- Participants in mass protest actions in Ukraine;
- Employees of enterprises, institutions, organizations, and civil defense forces who are (were) involved and directly participate in ensuring national security and defense, repulsing and deterring the armed aggression of the Russian Federation, being in the areas of hostilities during the period of their conduct.
In which cases do I need to report to the tax authorities?
People who do not belong to the above-mentioned privileged categories and received charitable assistance during the year are required to file an annual tax declaration indicating the amount of charitable assistance if its total amount exceeded: UAH 4,240 in 2024, UAH 3,760 in 2023, and UAH 3,470 in 2022.
What should I do if I belong to a privileged category and the tax authorities demand a declaration and tax payment for receiving humanitarian aid?
Such a request from the tax authorities is unlawful. The Foundation provides letters of explanation or certificates that you can submit to the tax authorities as a reasonable confirmation that this assistance is not taxable.
Does the receipt of humanitarian aid affect the calculation of the average monthly total family income?
The amount of assistance provided by the CF SSS is not included in the average monthly total family income for all types of state social assistance.
What should I do if the humanitarian aid I received was counted as part of my family’s average monthly total income?
When calculating social assistance, the Department of Social Protection receives information from the tax authorities about the income of a person and their family members. However, if the value of the humanitarian aid received in 2024 exceeded UAH 4,240, in 2023 — UAH 3,760, and in 2022 — UAH 3,470, and the CF SSS paid tax on it, this is reflected in the tax reports. In such cases, the Social Protection Department cannot determine that it was charitable assistance and not another type of income. Therefore, the Foundation provides certificates stating that the person’s reported income is charitable assistance. This allows the Department to correctly determine the average monthly total income of a family without taking into account charitable assistance.
What else should I know?
The Foundation provides information on the recipients of charitable assistance in its tax reports. If the charitable assistance is taxable, the Foundation independently calculates and pays taxes.
The Lifesaving Shelter, MPCA, SRH, and Protection Assistance for Conflict-Affected Communities in Rural Hromadas in Mykolaivska and Khersonska Oblasts project is being implemented by the CO CF SSS in collaboration with the international humanitarian organization CARE, with the support of the Ukraine Humanitarian Fund.