Publication date: 05.03.2024
Lawyer, graduated from the National University "Odesa Law Academy" with honors. Since 2017, I have been specializing in legal and educational and general legal issues. I am the author of legal articles, scientific publications and articles in the educational environment. Mentor of the "Veritas" legal clinic. The owner of the legal blog "Educational_law_ua" on Instagram.
The public organization is considered a voluntary association of those persons who want to implement the appropriate specific purpose or principles for public interest. It can be said that the existence of a public organization can become a unique basis for the implementation of various activities in the sphere of society. This written consultation in more detail determines whether the public organization can not pay taxes if there is a sign of non-profitability. So if you have questions about the legal aspects of public organizations, lawyer's consultation lawyer's consultation a lawyer of the legal marketplace “Consultant” can help you in a detailed understanding of such issues.
The analysis of documents and evaluation. legal analysis of the situation determines that in order to make a legal basis not to pay taxes determined by legislation, it is worth understanding that the sign of non-profitability when registering NGO will be an important nuance in this situation. This feature makes it possible to include a public organization in the register of non-profit institutions and organizations in Ukraine. It should be noted that the inclusion in the above register on this basis will not be possible if the legal entity is engaged exclusively in commercial activities.
In addition, the inclusion in the register of non-profit organizations is a rather difficult procedure, so not all organizations can be included in such register. That is why when working with the development of the charter of a public organization, such a question should be included and determine that the NGO has no main purpose of its activity to make profit. In order to obtain the status of non-profitability, it is necessary to understand certain features, namely: after the procedure of registration of the organization, you must contact the tax authorities with a application form 1-RN within 10 days.
Legal analysis of the situation suggests that the sign of non-profitability will allow such a public organization not to pay income taxes within the framework of the law and after positive confirmation from the tax authorities, there will be an opportunity to receive cash to the official account of the organization without paying income tax. In addition, it should be noted that in order to preserve such a status of non-profitability in the future, the following recommendations should be followed, namely:
accounting in the conduct of economic activity and submission of financial reporting. In case the organization does not submit such reporting, there is a chance for the loss of signs of non-profitability. Here it should be remembered that reporting non-profit NGOs have once during the year;
if NGO receives profit, it must be directed exclusively for the purpose of NGO – achieving the goal determined in the statute. That is why, the entire profit of such an organization cannot be distributed among the participants. Such profit may be membership fees of NGO members, but at the same time, it is possible to pay wages or remuneration to persons who work or provide paid services to the organization. However, here it is worth not abusing these aspects due to the risks of loss of non-profit status;
it is quite clear to determine the directions of NGO activity. Therefore, here it is necessary to widely determine the directions of activity (taking into account such costs for the organization’s services).
