Taxation Taxpayer: Businesses and individuals can make donations to Ukraine without tax consequences

Donations made by companies are not tax deductible.

Tax administration says it has received questions about whether donations can be sent to Ukraine, which has been attacked by Russia, and how they are treated for tax purposes.

Companies and individuals can make donations without tax penalties, the Tax Administration informs.

Companies can donate funds to Ukraine, but donations made are not tax deductible. Only expenses arising from the acquisition of income are tax deductible, with some exceptions provided for by law.

“According to the law, the board of directors or general meeting of a limited liability company may decide to give a gift for a charitable purpose. From the point of view of the tax administration, there is no obstacle to donations to support Ukraine “, leading tax expert Kalle Isotalo The tax administration reports in the press release.

In Finland the giver of the gift is not taxed but any gift tax will always be paid by the recipient of the gift. Thus, a donation made by an individual does not incur any tax consequences for the giver.

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“As the giver of a gift in Finland is not obliged to report the gifts he or she has given to the Tax Administration, an ordinary Finn can donate money to Ukraine without thinking about tax consequences,” says Isotalo.

Gifts given for charitable purposes are tax-free regardless of the amount. Non-profit activities can also be carried out elsewhere than in Finland, for example for the benefit of war victims. Such activities can be carried out, for example, by various non-profit organizations.

In the absence of a charitable purpose, an individual may give less than € 5,000 in three years to a single gift recipient without having to pay tax on the gift they receive.

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