TALLINN - The Estonian Chamber of Commerce and Industry has proposed to the Ministry of Finance to extend for at least one year the exemption whereby targeted donations to help Ukraine are not subject to taxation.
In March this year, the Riigikogu passed a legislative amendment which allows legal entities to make donations for Ukraine tax-free until the end of 2022. The Chamber of Commerce and Industry now turned to the ministry to extend the exemption for at least another year.
Under current law, a resident legal person shall not pay income tax on the donations and gifts made in order to preserve the territorial integrity and sovereignty of Ukraine and to provide and organize targeted humanitarian aid if the donations and gifts are made between Feb. 24 and Dec. 31, 2022
The derogation is valid for donations made via the Estonian Refugee Council, NGO Mondo, the Ukrainian Cultural Center, the National Defense Promotion Foundation, the Estonian Red Cross, the Rescue Association, and Rotary Club Tallinn Vanalinn.
According to the Chamber of Commerce and Industry, the derogation has worked well and encouraged Estonian businesses to donate towards assistance for Ukraine. As the hostilities in Ukraine have not ended, Ukraine continues to need help from its supporters. It is therefore imperative to extend the temporary derogation for at least one year, the chamber says.