Volunteering: the legal basis and accepting donations

What governs volunteering

Volunteering in Ukraine is governed by Law No. 3236-VI "On Volunteering". You can volunteer on your own as an individual or through a volunteer/charitable organisation. The key practical question is how to accept money so that it is not treated as your taxable income.

The main risk: collecting on a personal card without registration

By default, any receipts on an individual's card are income (art. 164.2.20 of the Tax Code). If you collect donations on an ordinary card and are not registered as a volunteer, the tax authority may charge:

• 18% personal income tax + 5% military levy = 23% of the entire amount collected.

How to accept donations lawfully

Art. 165.1.54 of the Tax Code exempts volunteer funds from tax if all of the following are met at once:

1. the volunteer is entered in the volunteers register (kept by the tax service, ДПС);
2. the funds arrive specifically on the account listed in the register (not cash, not other cards);
3. the funds are actually spent on purposes defined by law — aid to the Armed Forces, the National Guard, the SBU, the Border Guard, the police and other formations, and to those affected by the war and IDPs;
4. delivery is directly to the recipients or through designated state bodies;
5. every expense is backed by documents (receipts, invoices, acts, reports).

Even with the exemption you must file an annual tax declaration each year, showing these funds as exempt from tax. The relief can also cover the previous year.

Registering in the volunteers register

Submit an application on form No. 1-РВ (electronic form F1308304) — most conveniently via the ДПС e-cabinet (a qualified e-signature is needed; paper is also possible). The application states passport data, the IBAN of the dedicated account for collections, and the categories of people who will receive aid. The register is maintained under Ministry of Finance Order No. 1089. Proof of status is an extract from the volunteers register.

Alternative: a charitable organisation

If collections are systematic and large, it is easier to set up a charitable foundation/organisation (Law No. 5073-VI "On Charitable Activity and Charitable Organisations"): a separate account, clear accounting and the tax regime of a non-profit.

Legal basis

• Law of Ukraine No. 3236-VI "On Volunteering";
• Tax Code of Ukraine, arts. 164.2.20 and 165.1.54;
• Law of Ukraine No. 5073-VI "On Charitable Activity and Charitable Organisations";
• application form No. 1-РВ — on the ДПС website.