Individual entrepreneurs can donate to the Armed Forces of Ukraine from a business account: the State Tax Service explained whether this will affect the simplified system

Individual entrepreneurs can transfer charitable assistance to support the Armed Forces of Ukraine directly from their business account. In this case, they do not lose the right to work on a simplified taxation system.

Who is considered a benefactor

The State Tax Service reminded that according to the legislation, charitable activity is the voluntary provision of property or other assistance without receiving profit, remuneration or compensation.

At the same time, the benefactor in this case is an individual, not an individual entrepreneur.

Tax officials explain that according to the Civil Code of Ukraine, a person is an individual, and the status of an entrepreneur only gives him the right to carry out economic activities after state registration.

That is why charitable activity is not considered entrepreneurial activity of an individual entrepreneur, even if funds are transferred from a business account.

What you need to know about using accounts

The State Tax Service drew attention to the fact that the Instruction of the National Bank of Ukraine No. 162 provides for the opening of separate accounts:

for entrepreneurial activity;

for independent professional activity;

for the personal needs of an individual.

At the same time, the legislation prohibits the use of personal accounts for entrepreneurial activity.

At the same time, the law does not establish any restrictions on the use of funds that have already been received into a business account from economic activity for charitable purposes.

Will the donation affect the simplified system

The tax service emphasized that an individual entrepreneur has the right to freely dispose of funds received from his or her activities.

Therefore, transferring charitable assistance to the Armed Forces of Ukraine directly from a business account is not a basis for losing the right to be on the simplified taxation system.

Thus, individual entrepreneurs can support the Ukrainian military from a business account without risking their tax status.