Conditions for obtaining income tax benefits for enterprises and organizations founded by public associations of persons with disabilities

Enterprises and organizations founded by public associations of persons with disabilities and are fully owned by them have a right to apply income tax benefits.

Paragraph 142.1 Article 142 of the Tax Code of Ukraine stipulates that income received from the sale (supply) of products, performance of work and provision of services is exempted from taxation, except for:

excisable products,

supply of excisable products received under commission, consignment, surety, mandate, trust management and other civil law contracts that provide for the supply of products on behalf of another person without the transfer of ownership. 

To receive benefit, the enterprise must meet the following conditions:

in the previous reporting (tax) period, the number of employees with disabilities who have their main place of work at such enterprise is at least 50% of the average number of full-time employees;

payroll of such employees with disabilities is at least 25% of the total expenses on salaries.

This benefit can only be used if there is a permit for the right to use it. The permit is issued by authorized body according to the Law of Ukraine № 875-XII as of 21.03.1991 “On the fundamentals of social protection of persons with disabilities in Ukraine”. 

Such permits are issued by:

National Social Service of Ukraine,

Executive body of the Autonomous Republic of Crimea for social protection of the population,

Regional, Kyiv and Sevastopol cities state administrations.