Charitable organizations paid 1.9 billion UAH to the budget last year, the biggest amount was paid by three regions

Press service of the State Tax Service of Ukraine, published 18 March 2025 at 10:34 Chapter: News

3 886 charitable organizations transferred 1.9 billion UAH to the state and local budgets in the form of various taxes and levies in 2024. Ranking by the amount of funds paid was led by Kyiv, Lviv, and Kharkiv regions.

Particularly:

- Kyiv – 1 190 payers transferred 854.2 million UAH to the budget.

- Lviv region – 336 payers transferred 167 million UAH.

- Kharkiv region – 220 payers transferred 145.2 million UAH.

Regarding this year.

2 709 enterprises – charitable organizations transferred 395.3 million UAH to the budget in January – February 2025.

The same regions as last year retain leadership in payments for two months:

- Kyiv – 177.8 million UAH (997 payers),

- Lviv region – 33.6 million UAH (216 payers),

- Kharkiv region – 30.8 million UAH (161 payers).

Although charitable organizations are exempted from paying income tax, they pay other taxes and levies depending on the specifics of their activities.

Activities of charitable organizations are determined by the Law of Ukraine “On charitable activities and charitable organizations”. It establishes:

- principles of charitable activity;

- goals and areas in which it can be carried out;

- procedure for creation and functioning of charitable organizations.

Activities of such organizations are also regulated by the Civil Code of Ukraine, international treaties and other regulatory legal acts.

Main requirements for charitable organizations

Requirements of the Tax Code of Ukraine must be met to obtain status of the non-profit organization. This allows not to pay income tax if all income is used for statutory purposes.

Main conditions:

- Profit cannot be distributed among founders, employees or related parties – all funds must go to charity.

- Charter must clearly define goals, areas of activity, sources of funding and reporting procedure.

- Organization must be registered in Register of non-profit organizations and comply with legislation.

- Special procedure for termination of activities.

- Administrative expenses cannot exceed 20% of the annual income.

Entrepreneurial activity

Charitable organizations may be involved in entrepreneurial activity, but without making a profit. All profit must be used for charitable programs and maintenance of the organization.

Activities in the wartime

During the state of war or emergency, it is allowed to:

- Use funds not only for statutory purposes, but also to assist population and the army.

- Support the military, police, rescuers and their families, even if this is not in the statute.

- Pay compensation to employees (up to 25% of administrative expenses).

Loss of the non-profit status

If organization violates the law, it may be removed from Register of non-profit organizations, after which it will become the income tax payer.