The Act on the assistance of Ukrainian citizens in connection with the armed conflict in the territory of that country was signed by the President and published in the Official of the Law. The new provisions entered into force when they were published and apply retroactively from 24 February 2022 The comprehensive package of aid-oriented actions also includes tax solutions prepared by the Ministry of Finance. The new solutions extend the list of previous preferences that taxpayers can also benefit from.
12 March President Andrzej Duda signed the Act on assisting Ukrainian citizens in connection with the armed conflict in the territory of that country. On the same day, the Act was announced in the Official Journal of the Acts (Journal of Laws of 2022, item 583). The new provisions entered into force when they were published and apply retroactively from 24 February 2022
The Act introduces favourable tax solutions for Ukrainian citizens as well as for individuals and companies who help victims of war. Under the new rules, income tax will not be paid both by Ukrainian citizens receiving aid and Polish taxpayers who will receive cash benefits in return for such aid. Aid – both already granted and yet to be provided – will also be accounted for in the tax costs of companies
- indicated Deputy Finance Minister Artur Soboń.
The Deputy Minister also stresses that the solutions introduced extend the existing preferences that helpers also benefit widely. one of which there is the possibility of deducting donations to public benefit activities.
Such activities are carried out by NGOs, both public benefit organisations (OPPs) and non-foundations and associations. Tax preferences apply to donations to such organisations operating in the EU and the EEA
- recalls Deputy Minister Sobon.
The value of the donation shall be deducted from the tax base, which is the amount of income. For natural persons (PIT), the deduction may be maximum up to 6% income. For companies (CIT) – to 10% income.
The deduction from the tax base shall also be made by donations made to donations made by honorary blood donors.
- like Arthur Sobon.
PIT exemption for receiving aid
The law on assistance to citizens of Ukraine exempt from personal income tax humanitarian aid received during the period from 24 February 2022 to 31 December 2022 by taxpayers who are citizens of Ukraine who arrived in Poland during this period from the territory of Ukraine.
The preference concerns benefits obtained from individuals and companies. On the basis of the previous provisions of the PIT Act, aid received from NGOs is also exempt. With these solutions, Ukrainian citizens, who will be provided free of charge with housing, food provision or treatment will not be paid by PIT.
Exemption also for helping Poles
Revenue tax will also be exempt from government cash benefits for those taxpayers who assist refugees. It is about people and companies 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 free of both PIT and CIT.
Tax costs for companies
The Act also introduced favourable solutions for companies that provide assistance to Ukraine through organisations that include:
- NGOs (including Ukraine),
- local government units,
- Government Strategic Reserve Agency,
- entities performing medical and medical activities in Poland and Ukraine.
The preference lies 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 to 31 December 2022
Donations unchanged
Citizens of Ukraine do not have to pay a donation tax, provided the value of purchased goods or property rights from one person or organization will not exceed 4,902 PLN per person 5 years.