Tax authorities update reporting: how to declare charity for defense
8 October 06:26
Taxpayers who provided free-of-charge assistance to non-profit organizations (for the needs of state defense and humanitarian aid) in 2025 must file a corporate income tax return in an updated form with an appendix DB. This was reported by "Komersant Ukrainian" with reference to the press service of the State Tax Service.
The changes, which came into force on September 16, 2025, require taxpayers to fill out a new DB annex when submitting reports.
What needs to be reflected in the new annex
In Annex DB, taxpayers will indicate data on:
- free transfer or transfer of funds and goods to non-profit organizations, including charitable foundations;
- the cost of free-of-charge work performed or services rendered;
- assistance for the needs of state defense and humanitarian aid provided in connection with Russia’s military aggression against Ukraine.
Thus, the state is introducing systematic accounting of charity-related transactions to increase the transparency of companies’ financial statements and ensure proper accounting of defense support.
Why is the database application needed?
The new application has two main functions:
- Calculation of the maximum amount of free aid.
The payer will be able to determine the amount within which charitable assistance does not affect the financial result before tax. If this amount is exceeded, appropriate adjustments are applied. - Unified accounting for charitable transactions.
From now on, all donation transactions will be systematized by type of recipient and impact on the taxable object. This will simplify control and reporting for both businesses and tax authorities.
Who should pay attention
The changes apply to all income taxpayers engaged in charitable activities or supporting humanitarian and defense initiatives. This will be especially relevant for companies that actively cooperate with foundations, volunteer organizations or provide material assistance to military units in 2025.
According to the State Tax Service, the updated declaration form is intended to make reporting more transparent and facilitate the audit of charitable expenditures without creating an additional bureaucratic burden on businesses.
