Families of fallen soldiers should not pay taxes on lump sum benefits

One-time cash assistance to the families of deceased, missing or deceased servicemen who performed their official duties or defended Ukraine is not taxable. Neither personal income tax nor military levy is payable on such payments.

What payments are exempt from taxes

This is a cash assistance provided for by the laws of Ukraine, presidential decrees and acts of the Cabinet of Ministers.

At the same time, not every payment or transfer received by a member of a serviceman’s family is automatically exempt from taxation. It is important on what legal basis the funds were paid.

A one-time assistance provided for by the legislation is not included in the total monthly or annual taxable income of an individual.

Is it necessary to pay military levy

Military levy is also not withheld from such assistance. Thus, the payment provided for by law in connection with the death, disappearance or death of a serviceman is not reduced by 18% of personal income tax and 5% of military duty.

Is it necessary to file a declaration

Receiving a one-time cash benefit in itself does not oblige you to file an annual income declaration.

However, if during the year a person received other income that is subject to declaration by law, the declaration must be filed according to general rules.

What about funeral assistance

For families of servicemen who died or died while serving, funeral assistance and compensation for related expenses are also provided.

Payments in the amount established by law are not subject to personal income tax and military duty. At the same time, additional compensation that does not fall under the relevant tax benefit may be taxed according to general rules.