Tax discount for education

Press service of the State Tax Service of Ukraine, published 01 September 2022 at 16:53 Chapter: News

Today is a Knowledge Day. Usually, on this day, all pupils and students are congratulated, because the acquired knowledge and skills open new doors to dreams, interests and records for them.

State supports education seekers, in particular, by returning from the budget part of the personal income tax withheld from wages for expenses incurred for education. That is, the right to a tax discount for education is granted. This right is provided for in Article 166 of the Tax Code of Ukraine (hereinafter – Code).

Calculating tax discount, expenses incurred for studying in domestic institutions of preschool, extra-curricular, general secondary, professional (vocational-technical) and higher education for obtaining appropriate education for oneself and/or a family member of the first degree of kinship and/or a person who has been placed under guardianship or care, or who has been placed in a foster family, family-type orphanage, if such taxpayer has been appointed as a guardian, custodian, foster father, foster mother, foster parent, mother-teacher.

However, there are several conditions for receiving tax discount:

tax discount can be granted only to a resident who has registration number of the taxpayer's registration card, as well as to resident - individual who, due to own religious beliefs, refused to accept registration number of taxpayer's registration card and officially notified the relevant supervisory body about it and has this is mark in a passport;

total amount of tax discount charged to the taxpayer in the reporting tax year cannot exceed amount of the annual total taxable income, calculated as wages, reduced taking into account provisions of Paragraph 164.6 Article 164 of the Code;

if the taxpayer by the end of tax year following reporting one has not used right to calculate the tax discount based on consequences of the reporting tax year, such right is not transferred to subsequent tax years.

During the past year, more than 113 thousand taxpayers used right to the tax discount for education and 380.6 million UAH were declared to be reimbursed from the budget. To date, more than 44 thousand taxpayers have applied for the tax discount for education, who declared 179.8 million UAH for reimbursement.

Reminder! Grounds for calculating the tax discount with indication of specific amounts are reflected in the annual tax declaration on assets and income, which citizens have a right to submit by an end of the year following the reporting year. Together with the declaration, it is necessary to provide payment and settlement documents, in particular, receipts, fiscal or commodity checks, revenue cash orders identifying the seller of goods (works, services) and the person applying for a tax discount (their buyer (recipient), as well as copies contracts, if available, in which the cost of services and the term of payment for such services must be reflected.