Charity Under Control: Businesses Will Report Aid in the New BD Appendix

Starting September 16, 2025, amendments to the corporate income tax declaration form came into force, introducing a new Appendix BD.

The change was approved by Order No. 371 of the Ministry of Finance of Ukraine dated July 25, 2025, and implements the provisions of Law No. 4254-IX “On Amendments to the Tax Code of Ukraine to Encourage Charity During Martial Law.”

From now on, all corporate income tax payers that provide free assistance to non-profit or charitable organizations, for defense or humanitarian purposes, must file an updated declaration form with the mandatory completion of Appendix BD.

What Appendix BD Includes

The new appendix is designed to systematize charitable and humanitarian transactions and calculate the limits within which such aid does not affect the taxable financial result.

Appendix BD requires taxpayers to report:

• Amounts of funds, goods, works, or services transferred to non-profit organizations, including charitable foundations;
• Free aid for defense and humanitarian programs related to Russia’s military aggression against Ukraine;
• Calculation of the 4 % and 8 % limits of the previous year’s taxable profit, within which donations do not trigger a tax adjustment;
• Exceeding the established limits, which requires an increase in the financial result before taxation under the Tax Code.

In effect, Appendix BD introduces a unified mechanism for accounting and reporting charitable assistance, ensuring consistent treatment across businesses and minimizing disputes during tax audits.

Key Points from the State Tax Service Letter

(Letter No. 23636/7/99-00-21-02-01-07 dated October 1, 2025)

According to the State Tax Service:

• From the 2025 tax year until the end of martial law, taxpayers are exempt from adjusting the financial result for the amount of aid provided to non-profit organizations, if such aid does not exceed 8 % of the previous year’s taxable profit, provided that over 4 % of that amount is directed specifically to charitable organizations;
• If the limits are exceeded, adjustments apply under subparagraphs 140.5.9, 140.5.14 of Article 140 or paragraph 72 of Subsection 4 of Section XX of the Tax Code;
• The declaration form now includes new lines for transferring data from Appendix BD into Appendices RI and DIIA;
• Tables 1–7 of Appendix BD cover different types of free-of-charge transactions, including those of Diia City residents.

These updates create a standardized framework for recording and controlling charitable contributions — from humanitarian supplies to donations in sports and culture.

What It Means for Businesses

1. New reporting obligations. Companies involved in charity or humanitarian support must adapt their accounting systems to record such transactions, including limit tracking and non-profit status codes.
2. Reduced audit risks. Transparent reporting through Appendix BD minimizes potential disputes and reassessments by tax authorities.
3. Tax incentives for charity. Law No. 4254-IX effectively encourages corporate philanthropy: companies donating part of their profits to defense or humanitarian projects can do so without losing tax benefits within the established 8 % cap.

Conclusion

The introduction of Appendix BD marks a significant step toward transparent accounting of corporate charity during wartime.

From now on, every corporate income taxpayer must:

• keep detailed records of all free-of-charge transfers;
• ensure that aid recipients are included in the official Register of Non-Profit Organizations;
• monitor that the total value of assistance does not exceed 8 % of the previous year’s taxable profit.

For companies supporting defense and humanitarian initiatives in 2025–2026, the BD Appendix becomes a key instrument for accurate and compliant tax reporting of charitable activity.