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New income tax exemption on gifts and donations for Ukraine

The Estonian Parliament adopted on 23 March 2022 changes to the income tax legislation, according to which companies can make tax exempt gifts and donations for the benefit of Ukraine during the period of 24.02.-31.12.2022, if these gifts and donations are provided to the below-listed non-govermental organizations for maintaining the territorial integrity and sovereignty of Ukraine and upon intended purpose for providing and arranging humanitarian aid:

 

1) MTÜ Estonian Refugee Council;

2) MTÜ Mondo;

3) Ukrainian Cultural Centre;

4) National Defence Promotion Foundation;

5) Estonian Red Cross;

6) Rescue Association;

7) Rotary International District 1420 (Rotary Klubi Tallinn Vanalinn).

The described law amendment entered into force on 6 April 2022. Thus, the referred gifts and donations can be provided by companies on a tax exempt basis, without taking into account the limitations prescribed by § 49 of the Income Tax Act and declaring them in the Appendix 5 of form TSD.