Do you pay for your own or child's education? Do you have a mortgage? There is a way to save and partially reimburse such expenses – to return from the state part of the paid personal income tax (hereinafter – PIT). Find out more about the PIT tax rebate in 2020, the conditions for receiving it and the documents that need to be prepared and submitted to return part of the funds to your wallet.
Prerequisite for receiving tax rebate
As you know, the tax rebate includes expenses actually incurred by the PIT payer during the reporting tax year, confirmed by relevant payment and settlement documents, in particular, receipts, fiscal or commodity checks, income cash orders, copies of contracts identifying the seller of goods (works, services) and their buyer (recipient).
It should be reminded that in order to receive the tax rebate, the cost of goods (works, services) and the term of their sale (performance, provision) must be reflected in the payment and settlement documents.
Expenses allowed for inclusion in tax rebate
The list of expenses allowed for inclusion in the tax rebate is defined in item 166.3 of Article 166 of the Tax Code of Ukraine (hereinafter – Tax Code).
Thus, the tax rebate may include:
- part of the amount of interest paid for the use of a mortgage loan, determined in accordance with Art. 175 of the Tax Code;
- donations or charitable contributions to non-profit organizations, which on the date of transfer of such funds and property met the conditions specified in item 133.4 of Art. 133 of the Tax Code;
- the amount of funds paid for the benefit of domestic preschool, out-of-school, general secondary, vocational (vocational and technical) and higher education institutions to compensate for the cost of obtaining the appropriate education of such taxpayer and/or a member of his/her family of the first degree;
- insurance payments (contributions, premiums) under long-term life insurance contracts and pension contributions within the framework of non-state pension provision;
- the amount of expenses for the payment of assisted reproductive technologies or payment for public services related to the adoption of a child, including the payment of state duties;
- the amount of funds paid by the taxpayer in connection with the conversion of a vehicle owned by the taxpayer, using as a fuel the motor mixture, bioethanol, biodiesel, compressed or liquefied gas, other types of biofuels;
- the amount of expenses for the payment of expenses for the construction (purchase) of affordable housing, as defined by law, including the repayment of a preferential mortgage loan provided for such purposes, and interest thereon;
- the amount of funds in the form of rent under the lease agreement (apartment, house), executed in accordance with the requirements of applicable law, actually paid by a taxpayer who has the status of an internally displaced person.
Mechanism for obtaining tax rebate
To receive a tax rebate, the taxpayer must fill out and submit property and income declaration by December 31 of the year following the reporting year.
The amount to be refunded to the taxpayer in connection with the exercise of the right to a tax rebate will be credited to the bank account opened with any commercial bank or sent by postal transfer to the address specified in the declaration within 60 calendar days of receipt of such tax declaration.
