The Ministry of Economics proposes to exempt regional grants from taxation

The Ministry of Economic Development wants to exempt recipients of regional grants and subsidies from paying personal income tax, similar to the procedure that applies to federal support measures, follows from the draft law developed by the department. Amendments are proposed to be made to Art. 217 of the Tax Code (TC).

We are talking about receiving grants, prizes and prizes in cash or in kind, which are allocated directly from regional and local budgets, as well as through a non-profit organization (NPO). It is also proposed to exempt from taxation state support from the constituent entities of Russia for travel to competitions, meals and hotel accommodation for participants in socially significant projects, as well as for communication services for volunteers. At the same time, the draft law limits the areas of implementation of such grants by the law on NGOs, which establishes the areas in which organizations can receive support from the state. “Grants to individuals are provided, as a rule, in the field of supporting education, science, culture, the development of civil society, and other socially important areas,” the explanatory note says. By not paying taxes on such grants, their recipients will be able to allocate more funds for the implementation of activities in these areas, the authors of the bill believe.