Lex Ukraine retains tax relief for donations
A draft amendment to Act No. 65/2022 Coll., on certain measures in connection with the armed conflict in the territory of Ukraine caused by the invasion of the Russian Federation, has passed the senate and is now heading for the president's signature. The validity of the tax measures, mainly concerning the tax treatment of donations, will thus be extended until 2026.
Previously, the Ministry of Finance announced its intention to extend the tax deductibility of aid to Ukraine until 2026, as we reported in the article titled Increased tax support for donations to apply until 2026.
Individuals and corporations will be able to deduct the value of donations from the tax base for taxable periods 2024, 2025, and 2026 (and corporations also for the taxable period ending 28 February 2027), and up to 30 rather than the standard 15 percent of the income tax base.
Other measures, such as an extension of the scope of deductible donations to include donations in connection with support for Ukraine or the possibility of claiming such donations directly as a tax-deductible expense, also remain applicable for these taxable periods. For details on the individual measures whose validity is being extended refer to our article Income tax view on 2022 donations to Ukraine.
Moreover, for the above periods, individuals shall not be obliged to file a tax return should such obligation arise solely because they claim a donation provided to Ukraine through the Embassy of Ukraine in the Czech Republic as an item reducing the tax base.