Information for Charity Funds and Other Non-Profit Organizations
Before the end of 2016, all non-profit organizations must bring their founding documents in compliance with cl. 133.4 Art. 133 of the Tax Code of Ukraine and furnish offices of the State Fiscal Service of Ukraine with copies of new founding documents, in particular, the Articles of Association. Failing this, after 1 January 2017, non-profit organizations will be taken off the Register of non-profit institutions and organizations and, therefore, will be charged on the general taxation system.
Requirements to founding documents of non-profits.
The documents need to enshrine the prohibition to distribute received income or its part among founders (participants), members of such organization, employees (except for payroll, social security contributions), members of governing bodies, and other related persons.
The Articles of Association must specify that in dissolution of a legal entity (a non-commercial organization) as a result of its liquidation, merger, split-up, consolidation, or transformation, all its assets are to be transferred to one or several non-profit-making organizations of the respective type, or to the appropriate budget.
The following entities may be non-profit organizations:
- institutions,
- non-governmental organizations,
- political parties,
- creative unions,
- religious organizations,
- charitable organizations,
- pension funds,
- societies,
- associations,
- housing, cottage building, horticultural, and garage consumer co-operatives (partnerships), condominium associations (OSMDs),
- trade unions, associations and organizations of trade unions,
- employers’ organizations and their associations,
- agricultural service cooperatives,
- cooperative associations of agricultural service cooperatives,
- other legal entities whose activities are suited to the requirements of the Tax Code of Ukraine.