Round Table 27.08.2014

Round Table “Ukraine is different – Ukraine is united: Charity and Business – Grounds for Civil Society Shaping”
On August 27, 2014 All-Ukrainian Charitable Fund “To You” (ACF 2U) due to CIVICUS support conducted round table “Ukraine is different – Ukraine is united: Charity and Business – Grounds for Civil Society Shaping” took place at Ukrinform agency.
Representatives of leading legal and auditing companies, leaders of NGOs, tax police professionals took part in the event as well as journalist who expressed a vivid interest in this subject as Ukrainian tax legislation in charitable sphere is thirsty for changes for years.
The following subjects were discussed:
- Exemption from taxation for business, which provides charitable assistance to non-profit organizations. The realities of current Ukrainian legislation;
- Tax incentives for business, which provides charitable assistance to charitable entities in Western Europe and in the USA. Analysis of legislation;
- General evaluation of charity effectiveness in Western Europe and in the USA.

Speakers: Julia Goldenberg, ACF 2U Director; Vladimir Palchik, LLC “Yurbiznes Consulting” Head; Okasan Ustinova Charitable Fund “Ksena” Director; Yuriy Burdim, Irina Katsal, & Olga Snizhko from “De Visu” Group Department Head.

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Round table participants came to the conclusion that the level of philanthropy in Ukraine will grow only along with legislation liberalization.

“Ukraine requires amendments to the Tax Code to liberalize legislation and to increase charity”, stressed the head of LLC “Yurbiznes Consulting” Vladimir Palchik.
“Failure to change the law on charity ensures the decrease of official charity in our country. Business has no incentive to provide any charity care – both to charitable funds and directly to citizens in need. First of all tax incentives for businesses arevnecessary. In particular, changes to the Tax Code of the increase in the amount of taxable income that can be transferred to charitable organizations – from 4% to 20%,” he said.
ACF 2U Director Julia Goldenberg added that while providing charitable assistance Ukrainian business almost doesn’t face exempt from tax.
“Even more while providing the so-called “untargeted” charitable assistance to individuals a charity acts as a tax agent and must pay tax if the amount of help rendered exceeds the minimum wage. But this money could have been used to provide additional assistance to victims, refugees, elderly in need. Now there is an economic crisis, vulnerable people are in trouble. In addition to that the situation in the east is more than difficult – fighters from ATO area and civil population need help. So this question is very acute for us,” she said in particular.

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Roundtable participants – representatives of charities, businesses, lawyers, tax specialists – have agreed to establish a working group to elaborate the proposals with required amendments. They also plan to establish an appropriate Internet working group, where the issue will be openly discussed in order to submit these changes to the Tax Code.