Preferences for CIT companies supporting Ukrainians


According to new Decreee inluding preferences for CIT, until the end of December 2022, companies taxed with the Zero tax on reinvested profits solution and providing humanitarian aid to Ukrainian citizens (through other entities) can benefit from tax relief. This is made possible by the Decree of the Minister of Finance of 18 March 2022 on the non-collection of a flat rate on the income of companies in connection with counteracting the effects of hostilities on the territory of Ukraine.


According to the text of the Decree of the Ministry of Finance, it is possible not to collect the Zero tax on reinvested profits solution in the situation of transfer in the form of donations or gratuitous benefit to the entities listed in art. 38w(1) of the Act of 15 February 1992 on Corporate Income Tax to counteract the effects of warfare on the territory of Ukraine. The relief applies to donations and gratuitous benefits realised between 24 February 2022 and 31 December 2022.


Preferences for CIT


Pursuant to art. 38w(1) of the CIT Act, the entities to which companies taxed with a flat rate on corporate income may make donations or provide gratuitous benefits for the purpose of transfer to Ukrainian citizens are:


  • organisations referred to in art. 3(2) and (3) of the Act of 24 April 2003 on public benefit and volunteer work, or equivalent organisations as defined in the laws regulating public benefit activities in force on the territory of Ukraine,
  • local authorities,
  • Government Strategic Reserve Agency,
  • entities performing therapeutic or emergency medical activities on the territory of Poland or Ukraine.
The waiver of collection of the lump sum may cover all benefits regardless of their type, and therefore monetary, in-kind and unpaid benefits provided or performed for the benefit of the above-mentioned entities. The Minister of Finance has not specified the forms of assistance to which the relief applies, due to the expected wide variety, depending on the situation , in which the refugee finds himself. Humanitarian assistance may be the provision of basic necessities of life, i.e. the provision of housing, food. Such assistance can be, in a particular case, financing medical treatment, or paying for education or courses to change professional qualifications.

The preference will apply to income from non-business expenses earned between February 24, 2022 and December 31, 2022.

The regulation came into effect on March 19, 2022, and was published in Law Gazette No. 641.