Tax discount for training 2023

Students in Ukraine who pay for tuition can will return part of the funds in the form of a tax discount of 18%. However, several important nuances should be taken into account. For example, the fact that the tax discount is provided only if the payer had income in the form of a salary.

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It should also be taken into account that the “discount” is given for the previous hour. That is, in 2023, applications are submitted for compensation for 2022, explained expert accountant Viktor Onyshchenko. He clarified that the amount of the tax discount is 18% of the cost of education, but it cannot exceed the amount of personal income tax (PIT) that the payer paid to the budget.

The specialist also listed the main conditions for obtaining a tax discount for education:

• in 2023, you can get a tax discount only for 2022, for 2021 it will no longer work;
• an educational institution can be of any form of ownership: state, communal or private, i.e. education in private educational institutions also gives the right to a tax discount – it can be both an institution of higher education and a kindergarten or school;
• the form of education is also not important: day (stationary), extramural, evening, distance;
• it is not taken into account whether it is the first education and to what degree (professional and technical education, junior bachelor, bachelor, master, graduate student, doctor).

What will not be discounted:

• education of Ukrainians in foreign educational institutions and education of foreign citizens in Ukrainian educational institutions;
• education in parallel in several educational institutions;
• training in courses (for example, driving or accounting courses), trainings, as they are not recognized as services for obtaining a certain educational/scientific degree;
• fee for transfer of certain subjects in institutions of higher education, purchase of methodical materials, etc.

Since the payer receives his personal income tax from the state treasury, this tax must be paid. Ego payers are people who have an employment contract. The discount does not apply to the income of a self-employed person (if there is also no employment under an employment contract), income from independent professional activity, and even income under GPC contracts. If the person did not work anywhere, there is no discount either.

It is not about the person who studies, but about the person who pays for education. For example, it can be parents. However, only if the age of the children does not exceed 23 years (taking into account that they continued education from the age of 18).

To receive a tax discount, a student or a relative who pays for his education must prepare the following documents:

• passport;
• registration number of the taxpayer’s account card;

• declaration of property status and income;
• salary certificate (form No. 3);
• a copy of the contract with the educational institution;
• copies of receipts (cheques, payment orders) for payment of training;
• documents confirming the degree of kinship, if relatives pay for education;
• application with details of the account to which the money will be transferred.

The money must be transferred to the indicated card within 60 days from the date of submission of the declaration. If the calculated amount turns out to be more than the amount of paid personal income tax, the payer will simply have the personal income tax returned.

As reported by OBOZ.UA, in Ukraine they are going to significantly increase the tax rate on the income of banks – from 18% to 25-50% (in different years in different ways). It is assumed that this will bring an additional 24-25 billion UAH to the country’s budget in 2023, and 6-7 billion UAH per hour in the future.

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