Changes to Russian tax code for NGOs

Changes to the tax code for NGO staff

10.04.2014

The Russian State Duma has agreed changes to the Russian Tax Code on its second reading.  They are designed to improve the tax arrangements for NGOs, particularly voluntary organisations.

The changes will clarify which forms of income paid to volunteers will be liable to taxation and the payments they receive will not be taxed.

The news Agency Novosti has reported that everything that had previously been supplied to volunteers (including uniforms, health and life insurance, food, transport and accommodation costs) were taxed as personal income at a rate of 13%.

“Now this money can be spent on raising volunteers’ pay and conditions, improving their food and accommodation and increasing their health and life insurance”, said Alexander Karpov, a member of the Coordinating Council for the Development of Voluntary Services and Deputy General Director of the organisation Managing Sport and Community Projects.

Prizes and payments awarded to NGOs under the Russian Presidential Grant Scheme will also be exempt from tax.  They include grants made to children and young people to promote the arts and culture.

Ilya Chukalin, General Director of the Presidential Grants Foundation noted that the changes will increase the income of NGOs and allow them to direct more of their funds towards the communities they are supporting.

Source: https://www.asi.org.ru/news/2018/04/10/nalog-zakon-so-nko/