In the “Q&A” section, we provide clarification on the taxation of grants received under the “eRobota” program, as well as the key conditions for their use and the obligations of recipients.
Receiving a grant under the “eRobota” program is a great boost for a business, but it also comes with responsibility.
“Will I have to pay part of the received grant back to the state in the form of taxes?” — entrepreneurs often ask.
Answer: No. According to subparagraph 14.1.277¹ of paragraph 14.1 of Article 14, Section I of the Tax Code of Ukraine, these payments have the status of a budget grant and are not included in the recipient’s total taxable income. The “eRobota” program is state-funded, therefore the rules of targeted financing apply. The main rule is that the grant amount itself is not considered income at the time of receipt, provided it is used for its intended purpose.
Instead of paying tax directly on the grant amount, the state sets requirements for “repayment” through future activity:
job creation: the number depends on the amount and type of the grant;
payment of taxes and fees: the recipient must pay taxes for themselves and their employees within 3 years;
business activity period: the business must operate for at least 36 months from the moment the funds are received.
More details about grant support: https://dcz.gov.ua/grantssearch
If you still have questions, please contact the call center of the Donetsk Regional Employment Center at: 0-800-219-713.