Increased tax support for donations to apply until 2026
The chamber of deputies proposes to extend the applicability of the increased limit on the value of donations that taxpayers may deduct at 30% of the tax base until 2026. It also proposes to maintain the tax relief for donations made in support of Ukraine.
In the second reading of the amendment to the Act on Measures Connected with the Armed Conflict in Ukraine, an amending proposal has been filed to extend the effectiveness of tax relief for donations until 2026 (for legal entities until 28 February 2027).
The key point of the proposal is to maintain the applicability of the increased 30% limit on the maximum value of donations that can be deducted from the tax base for all types of donations (not only donations intended to support Ukraine), which was introduced in 2022 and was originally intended to apply only in the short term. The increased limit will thus also apply, e.g., to donations made in connection with this year's floods.
Other measures, such as the extension of the scope of deductible donations to include donations made in connection with support for Ukraine or the possibility to claim such donations directly as a tax-deductible expense, will also remain in force.
For details on the measures applicable to date, see our article Income tax view on 2022 donations to Ukraine.
The amending proposal is now awaiting a vote by the chamber of deputies in its third reading. We expect a consensus across political parties on its adoption.