The Central Interregional Department of the State Tax Service for Work with Large Taxpayers reminded that certain categories of institutions and organizations are not payers of income tax. To do this, they must meet clear criteria and be included in the Register of Non-Profit Institutions and Organizations. This is provided for in Art. 133 of the Tax Code of Ukraine.
Who can apply for non-profit status?
Budget institutions.
Public associations, political parties, creative unions.
Religious organizations.
Charitable organizations.
Pension funds.
Unions, associations and other associations of legal entities.
Housing and construction cooperatives (HCC).
Gardening, summer cottage, garage cooperatives, agricultural service cooperatives.
OSMB (association of co-owners of an apartment building).
Professional unions (trade unions).
Employers’ organizations.
Other legal entities whose activities meet the requirements of clause 133.4 of Article 133 of the Code of Civil Procedure.
Mandatory requirements for obtaining non-profit status
Legal registration: established and registered in accordance with the law regulating the activities of the relevant non-profit organization.
Prohibition of profit distribution: the constituent documents must prohibit the distribution of income among the founders, members of the organization or employees.
Transfer of assets upon liquidation: the constituent documents must provide that in the event of termination of activities, all assets are transferred to other non-profit organizations or credited to the budget. However, this does not apply to associations and associations of associations of co-owners of apartment buildings and housing and construction cooperatives.
Entry by the regulatory authority into the Register of Non-Profit Institutions and Organizations.
The income (profits) of a non-profit organization are used exclusively to finance expenses for the maintenance of such a non-profit organization, the implementation of the goals (objectives, tasks) and areas of activity defined by its constituent documents.
The income of non-profit religious organizations is also used to carry out non-profit (charitable) activities provided for by law for religious organizations, including the provision of humanitarian aid, charitable activities, and mercy.
How to submit documents?
To be included in the Register, you must submit an application in form 1-РН and copies of the constituent documents:
Online: through the Electronic Account of the Payer (the fastest method);
By mail: by letter with a notification of delivery and a description of the investment;
In person: by the head or representative of the non-profit organization or a person authorized to do so;
To the State Registrar: as an appendix to the application for state registration of the creation of a legal entity or state registration of changes to information about a legal entity (in the event of changes to the constituent documents that affect the taxation system of a non-profit organization).
Consideration terms
The tax authority considers the documents within 3 business days. Based on the results, a decision is made on:
inclusion in the Register;
refusal (if an incomplete package of documents has been submitted or the charter does not meet the requirements of the Tax Code).
Special conditions for the use of income of non-profit organizations, specified in clause 63, subsection 4, section XX of the Tax Code, apply during the period of martial law.
