In recent years, very often individual entrepreneurs receive grants from various international, government, charitable and public organizations. Typically, the subject of such agreements is the provision of financial assistance for business development. Tax authorities believe that a grant is income taxed under the general taxation system, since the grant is not related to the result of business activities. Let us remind you that the tax rate is 18% of the amount of income received (in the form of a grant). In addition, a military tax of 1.5% must be paid on such income. Therefore, grant income will be included in your total monthly (annual) taxable income. If a grant is provided by international organizations in foreign currency, its size is determined in hryvnia at the NBU exchange rate on the day the funds (grant) are credited.
Of course, such a position is controversial for business, but this is precisely the position of the tax authorities, so you need to take it into account or prepare to refute it in court.
Law Firm “ADVICE”
Lawyer Kulakov Vitaly