35. Are there provisions for any other form of indirect public funding?

Firstly, under section 157 of the Tax Code, which entered into force in April 2011, the income received by political parties in the form of funds or property transferred free of charge or provided as irrevocable financial aid or donations, as well as in the form of passive incomes (dividends, interest, royalties), and, furthermore, funds or property received from the main activities of the parties (including revenues from sale of social and political literature, other promotional materials and merchandising, organising festivals, exhibitions, lectures and other political events) and grants or subsidies received from State or local budgets are exempt from taxation. Moreover, section 196 of the Tax Code provides that transactions involving the payment of dividends, royalties in cash or in the form of securities made by the issuer, are not subject to value added tax. Finally, the accounts of election funds of parties, electoral blocs and candidates are exempt from corporate income tax and private income tax. 29. Secondly, certain types of election campaigning by candidates, parties and blocs are financed from the State budget or local budgets. For example, in parliamentary elections, the following activities are financed from the State budget: publication of the election programme of every party and bloc in the official journals “Voice of Ukraine” and “Governmental Courier”, as well as in one regional newspaper; provision of airtime for election campaigning for each party and bloc (for each party: 60 minutes on national public television, 60 minutes on national public radio, 20 minutes on regional television channels in every region, and 20 minutes on regional radio channels in every region); and publication of information posters of parties and blocs with full programmes, complete lists of candidates and photographs of the first five candidates in the lists (2 copies of a poster of one party or bloc for every polling site).13 Similar rules apply to presidential and local election campaigns.1

Firstly, under section 157 of the Tax Code, which entered into force in April 2011, the income received by political parties in the form of funds or property transferred free of charge or provided as irrevocable financial aid or donations, as well as in the form of passive incomes (dividends, interest, royalties), and, furthermore, funds or property received from the main activities of the parties (including revenues from sale of social and political literature, other promotional materials and merchandising, organising festivals, exhibitions, lectures and other political events) and grants or subsidies received from State or local budgets are exempt from taxation. Moreover, section 196 of the Tax Code provides that transactions involving the payment of dividends, royalties in cash or in the form of securities made by the issuer, are not subject to value added tax. Finally, the accounts of election funds of parties, electoral blocs and candidates are exempt from corporate income tax and private income tax. 29. Secondly, certain types of election campaigning by candidates, parties and blocs are financed from the State budget or local budgets. For example, in parliamentary elections, the following activities are financed from the State budget: publication of the election programme of every party and bloc in the official journals “Voice of Ukraine” and “Governmental Courier”, as well as in one regional newspaper; provision of airtime for election campaigning for each party and bloc (for each party: 60 minutes on national public television, 60 minutes on national public radio, 20 minutes on regional television channels in every region, and 20 minutes on regional radio channels in every region); and publication of information posters of parties and blocs with full programmes, complete lists of candidates and photographs of the first five candidates in the lists (2 copies of a poster of one party or bloc for every polling site).13 Similar rules apply to presidential and local election campaigns.