7 March This year, the Council of Ministers adopted a bill regulating the assistance of Ukrainian citizens in relation to the armed conflict in the territory of that country. This is a comprehensive package of actions aimed at helping victims with the effects of war. Among them are tax solutions prepared by the Ministry of Finance.
The draft Act on assistance to Ukrainian citizens in connection with the armed conflict in the territory of that country, adopted by the Council of Ministers, contains a number of preferential solutions – including tax ones.
- Advantageable tax solutions are addressed both to Ukrainian citizens receiving assistance as well as to companies and natural persons providing assistance. We want the support to flow across a wide stream and that citizens of Ukraine can make full use of it. This is why we give up the tax collection on the benefits received by refugees, as well as their helpers, as well as introducing new tax preferences for companies – says Deputy Minister of Finance Artur Soboń.
Tax exemptions for refugees
Thanks to special solutions, Ukrainian citizens arriving in the territory of the Polish Republic will not pay inheritance and donation tax on the aid received. The project provides for exemption from this tax for the purchase of donations or orders from the donor of property ownership or property rights.
The exemption will cover both assistance from individuals and companies and NGOs. No quota will be limited and its application will not involve any formalities on the part of refugees - they will not have to report to the tax office.
The preference will apply from 24 February from 30 June 2022 Without amending the legislation receiving donations, Ukrainian citizens would have to pay a tax on donations of money and in kind, whose value received from one person or organisation exceeds 4,902 PLN Within 5 years.
Ukrainian citizens arriving in Poland as a result of war activities will also be exempt from income tax (PIT) on benefits received from individuals and companies. Therefore, they will not pay PIT on aid consisting, for example, in providing housing, providing food and financing for treatment. The preference will apply from 24 February from 31 December 2022
Preferences for donors
The bill also provides for favourable tax solutions for people and companies providing assistance to Ukrainian citizens fleeing the war and coming to Poland.
These preferences include tax exemption (PIT and CIT) for cash benefits paid to taxpayers who assist refugees. These are those who will accept under their roof war refugees from Ukraine and will receive additional funds from you for each refugee. Thanks to the tax preferences, the benefits received will be tax free.
The project also provides favourable solutions for companies that provide assistance to Ukraine through a wide range of organisations, including NGOs and local governments. The preference will consist in the possibility of including expenditure on this aid in tax costs (both in PIT and in CIT).
The cost of obtaining revenue will be expenditure on the production or purchase of goods and rights transferred under the aid, as well as costs incurred for unpaid benefits (e.g. free medical assistance). The preference will apply from 24 February from 31 December 2022