I contacted them because of the spread of false information on the Internet. The lawyers responded promptly and helped protect my reputation. I am satisfied with the result.
Chief Accountant
Leading specialist with practical experience in economics and accounting.
Accounting for international technical assistance
International technical assistance (hereinafter referred to as ITA) is a separate type of resources provided to domestic enterprises and organizations by foreign governments and international organizations on a non-repayable basis. Accounting for this type of targeted financing involves careful collection and preparation of primary documents, ensuring accounting of funds in special accounting accounts, and the formation of specialized reporting for state bodies. It is a critically important tool for ensuring transparency in the use of international resources. In this article, we will examine in more detail the main aspects of accounting for this category of international assistance.
What is international technical assistance?
International technical assistance is material and intangible (mainly consulting) resources provided on the basis of international agreements. As a general rule, the beneficiary (a government body interested in implementing the relevant project), the recipient (a direct recipient who is a company, organization, or citizen of Ukraine) and the donor (an entity providing assistance) participate in obtaining ITAs.
International technical assistance can cover a wide range of assistance, including:
- consulting services and expert support for donor representatives;
- technical equipment and technologies for conducting the main activities of the company;
- advanced training in the form of trainings, seminars, internships;
- humanitarian assistance (funds or material resources);
- other organizational and informational support.
The procedure for attracting ITAs, in addition to negotiations and signing agreements with the donor, should also provide for state registration of projects (programs), on the basis of the implementation of which the relevant support is provided. Below are the specifics of accounting for received international technical assistance in more detail.
Accounting for international technical assistance
Value Added Tax (VAT) Benefit
According to paragraph 197.11 of the Tax Code of Ukraine, transactions for the supply of goods and services within the customs territory of Ukraine that are part of international technical assistance are exempt from VAT. There are also other benefits for taxpayers, but only on condition that they can provide the following to the state regulatory and control bodies:
- a copy of the registration card of the MTD implementation project;
- a copy of the procurement plan;
- a copy of the contract for supply and procurement at the expense of MTD.
It is worth emphasizing that when carrying out transactions for receiving international technical assistance, it is also necessary to take into account the rules of interaction with customs authorities, check the legality of agreements with the donor and monitor new changes in the legislation on international cooperation. Alternatively, you can seek advice and support from an accountant in the field of foreign economic activity (FEA) of the company “Prikhodko & Partners”.
Accounting for income and expenses within the framework of international technical assistance
According to current national legislation, the receipt of funds from the International Technical Assistance is reflected in account 48 “Targeted financing and target income”, 312 “Current accounts in foreign currency” (if the assistance is received in foreign currency taking into account the exchange rate difference) or 201 “Raw materials and supplies” (if the assistance is not in monetary terms). There is also an option to reflect income in account 718 “Income from current assets received free of charge”.
The main expenses from international technical assistance are the accrual of depreciation. In accounting, the accrual of depreciation is reflected in an accounting entry that looks like this: Debit (91, 92, 93, 94) and Credit 13.
How can accountants from “Prikhodko and Partners” help?
Our accountants, having significant experience and deep knowledge in the field of accounting, can provide comprehensive support:
- accounting (development of accounting policy, processing of primary documentation, accounting for target financing within the framework of international cooperation, submission of necessary reports);
- optimization of taxation (application of tax benefits, development of legal schemes for minimizing tax liabilities taking into account the specifics of the activity, support during inspections by regulatory authorities);
- online consulting on accounting and reporting issues.
By contacting accountants at “Prikhodko & Partners”, you can ensure correct and timely accounting and reporting, minimize the risks of errors and penalties from the tax authorities, use all the benefits provided by law, and focus on business development by handing over routine matters to professionals.
Calculate the cost of services
1 question
Were other accountants handling your case?
2 question
Are you in Kyiv or Kyiv region?
3 question
Do you need accounting support urgently?
You may also need:
call back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)

