Tax returns and exemptions

Secure tax settlements for non-governmental organizations

ATF NGO supports foundations, associations, and public benefit organizations in the correct and accurate filing of taxes, with particular attention to the specifics of the non-profit sector.

By combining the knowledge of tax advisors and accountants, we help you avoid irregularities that can lead to the loss of exemptions, errors in revenue classification, or incorrect settlements of externally funded projects.

Basic support scope

Corporate income tax (CIT) consulting, including the application of exemptions for statutory activities under Article 17(1)(4) of the CIT Act.

Accounting for business activities conducted alongside statutory activities.

Analysis of tax risks related to mixing business and statutory activities.

VAT advisory, including subject matter exemptions and VAT deductions for EU projects.

For which NGOs are our tax and exemption services intended?

We support foundations, associations, public benefit organizations, and NGOs engaged in mixed activities (statutory and commercial) who wish to safely apply tax exemptions, correctly account for EU projects, and avoid risks associated with corporate income tax (CIT) and value-added tax (VAT).

Our tax support for NGOs focuses on eliminating risks that could lead to penalties, loss of exemptions, or the need for additional tax payments.

Step 1

Business Activity Analysis and Risk Identification

Assessment of whether revenues and expenses are correctly classified as statutory or economic.
Verification of fulfillment of tax exemption conditions under Article 17(1)(4) of the Corporate Income Tax Act.
Review of documentation and settlements for publicly funded projects.

Step 2

Tax consulting and operational support

Explanation of the rules for applying CIT exemptions for statutory activities.
Determining the correct method for assigning costs and revenues.
VAT consulting, including assessment of deduction rights and the application of exemptions.

Step 3

Secure settlement of mixed-activity businesses

Support in accounting for business activities conducted alongside statutory activities.
Development of principles for correct cost allocation.
Minimizing risks associated with incorrect booking of activities.

Step 4

Reporting preparation

Preparation of the annual financial statements.
Preparation of reports for the National Court Register and the ministry.
Preparing reports and statements required by donors.

With us, NGO tax settlements are safe, legal, and predictable.

FAQ

Non-governmental organizations operate under specific regulations that differ from those governing entrepreneurs.

What is the difference between NGO accounting and business accounting?

NGO accounting requires maintaining accounting records in a manner that allows for the separation of statutory, paid, unpaid, and business activities (if they exist). Financial statements are prepared according to separate principles, and grants and subsidies must be recorded on a project basis. ATF NGO ensures full compliance with the Accounting Act and the specifics of the non-profit sector.

Do all foundations and associations have to keep full accounting records?

Yes. As a rule, all NGOs are obliged to keep full accounting records in accordance with the Accounting Act. Exceptions are very limited. ATF NGO helps to choose the appropriate accounting policy, keep books, and prepare reports that comply with legal and statutory requirements.

Are non-governmental organizations subject to corporate income tax?

Yes, foundations and associations are CIT taxpayers, however, part of their income may be exempt under Article 17(1)(4) of the CIT Act (non-profit public benefit statutory activity). ATF NGO analyzes the structure of activities and helps to safely account for statutory and business income in order to use exemptions in accordance with the law.

How should an NGO account for business activities conducted alongside its statutory activities?

Business activity must be organizationally, financially, and accounting-wise separate from statutory activity. Failure to maintain this separation increases tax risks and may lead to the loss of exemptions. ATF NGO establishes rules for separating activities and indicates how to correctly account for costs, revenues, and VAT.

What does the proper accounting for subsidies and grants look like?

Grants require separate accounting and reporting records, in line with the financier's guidelines. ATF NGO maintains project-based accounting, prepares reports for institutions, monitors expenditure eligibility, and supports NGOs during audits and inspections.

Does a non-governmental organization have to pay VAT?

This depends on the nature of the business. An NGO can:

to use a subjective exemption,
be required to register as a VAT taxpayer,
to have the possibility of partial VAT deduction for EU projects.

ATF NGO analyzes the operational structure and helps determine correct tax obligations.

Which statutory duties require special attention?

The most important include: correct content of the statute, compliance of actions with the statute's provisions, correct resolutions of bodies, up-to-date entries in the National Court Register (KRS), and reporting to the relevant ministry. ATF NGO prepares statutes, amendments to statutes, resolutions, and corporate documents, and conducts full registration processes.

What is the liability of NGO board members?

Members of the management board bear civil, criminal, and tax liability for, among other things, public obligations, mismanagement of assets, or violations of the Accounting Act. ATF NGO analyzes risks, educates boards, and creates procedures to minimize the personal liability of officials.

What compliance procedures should a foundation or association have?

The most commonly required documents are: accounting policy, anti-corruption procedures, AML procedures (for business activities), conflict of interest management policies, document circulation instructions, and regulations for governing bodies. ATF NGO creates and implements a complete set of compliance documents.

How to start cooperating with ATF NGO?

It is best to contact us and indicate the area where support is needed – accounting, taxes, grants, statutes, compliance, or board liability. We will analyze the situation, propose the scope of cooperation, and take over the service so that the organization operates safely and transparently.