Internally displaced persons are entitled to tax rebate for housing rental expenses if conditions specified by the law are met.

Tax rebate is opportunity to refund part of the personal income tax paid at the expense of expenses that the payer incurred during the reporting year and documented.

To receive it, the payer must submit annual property status and income tax declaration. This must be done by December 31 of year following the reporting year.

Only actually incurred expenses, confirmed by relevant documents – receipts, checks, payment documents or a contract indicating the cost of services and terms of their payment, can be included in tax rebate.

For internally displaced persons, right to tax rebate for renting housing arises provided that:

- the payer and his/her family members of the first degree of kinship do not own housing suitable for living (except for housing in temporarily occupied territories);

- the payer does not receive budget payments provided for by the law to compensate for living expenses.

To confirm right to tax rebate, it is necessary to submit to the controlling authority at the registration place:

- property status and income tax declaration;

- copy of registration certificate of internally displaced person;

- copy of the housing lease agreement;

- documents confirming rent payment;

- information that allows identifying family members (surname, first name, patronymic and registration number of the taxpayer’s registration card or series and passport number (for individuals who, due to their religious beliefs, refuse to accept registration number of the taxpayer’s registration card and have officially notified relevant controlling authority and have a mark in their passport);

- documents confirming absence of conditions that do not give a right to receive tax rebate, in particular regarding absence, including family members of the first degree of kinship, ownership of suitable housing or absence of payments to cover living expenses.

Housing lease contract must be concluded in writing. Contract confirms the fact of lease relationship between the housing owner and the tenant.

Documents confirming absence of conditions that do not give a right to receive tax rebate may be certificate from the State Register of Real Property Rights to Real Estate, information from structural units for social protection of the population of regional and Kyiv city State Administrations regarding the taxpayer’s failure to receive targeted assistance to cover living expenses, etc.

Declaration can be submitted to the controlling authority where the taxpayer is registered. In case of a change in the residence address or other personal data, internally displaced persons must notify the tax authority by submitting a corresponding application for changes to the State Register of Individuals –Taxpayers.

Read more: https://zir.tax.gov.ua/main/bz/view/?src=ques&id=39278