This right is available to individuals who are residents of Ukraine and receive official income in the form of a salary from which personal income tax has been paid.
A tax discount allows for the reduction of annual taxable income by the amount of expenses actually incurred for the purchase of goods, works, or services from residents of Ukraine.
Which expenses can be included in a tax discount
The Tax Code of Ukraine provides the right to include, in particular, the following expenses in a tax discount:
– education – payment for tuition in pre-school, general secondary, vocational (vocational-technical), and higher education institutions for oneself or first-degree family members;
– mortgage housing – payment of interest on a mortgage housing loan;
– medical services – specific expenses, including those for the use of assisted reproductive technologies;
– insurance and pension provision – insurance premiums under long-term life insurance contracts and contributions under non-state pension provision contracts;
– charitable activities – donations and charitable contributions to non-profit organizations within limits determined by law.
Which documents must be kept
Only expenses confirmed by relevant documents are included in the tax discount. To do this, you must have:
– receipts, fiscal or sales checks;
– contracts with service providers;
– cash receipt orders and other payment documents;
– documents confirming the degree of kinship if the expenses were incurred for a family member;
– passport and registration number of the taxpayer’s account card.
Such documents must specify the cost of goods or services, the date of their purchase or provision, as well as information that allows for the identification of the seller and the buyer.
How to exercise the right to a tax discount
To receive a tax discount, it is necessary to file an annual tax return on property status and income, stating the grounds for calculating the discount and the amount of expenses incurred.
The declaration can be submitted until December 31 (inclusive) of the year following the reporting year. Along with the declaration, copies of supporting documents must be submitted, while the originals should be kept for the period established by law.
It is important to note that the total amount of the tax discount cannot exceed the amount of annual income received as a salary. For certain types of expenses, the Tax Code of Ukraine may provide additional restrictions.
The right to a tax discount cannot be carried over to subsequent years. If a taxpayer has not used it within the established time frame, such right is lost.
Photo: Колаж: ДПС України у Київській області
