Tax rebate for workers: how to get back part of the taxes paid

Conditions for receiving a tax rebate

According to ХВИЛЯ: The State Tax Service of Ukraine reminded citizens who receive an official salary about the conditions for receiving a tax rebate. This mechanism allows reducing the annual taxable income by the amount of verified expenses in five social areas. In order to take advantage of this opportunity, citizens must submit an annual declaration with documents by December 31 of the following year.

Citizens of Ukraine can get back part of the personal income tax paid if they regularly pay tax. However, the right to a tax rebate does not carry over to subsequent years. As the State Tax Service of Ukraine stated,

“if a citizen did not submit the declaration on time, the opportunity to get back part of the taxes for this period is lost”

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Necessary documents and expenses for compensation

The amount of the calculated rebate cannot exceed the annual income of the citizen in the form of an official salary, and for some categories of expenses, there are additional financial restrictions.

To arrange a tax rebate, it is necessary to fill out and submit the annual declaration of property status and income. The declaration must be submitted by December 31 of the year following the reporting one. The originals of documents confirming expenses must be kept by the applicant for the period established by law. Among the necessary documents for registration, it is worth mentioning:

• receipts
• invoices
• contracts with service providers
• cash documents

The requirements for the invoice include clear documentation of the payment amount and the exact date of the transaction.

The list of expenses eligible for partial compensation includes:

• education (payment for services of kindergartens, schools, colleges, universities)
• housing (payment of interest on a mortgage loan)
• medicine (expenses for treatment and assisted reproductive technologies)
• contributions under long-term life insurance or pension security agreements
• charitable donations to nonprofit organizations

This information is important for citizens who plan to take advantage of the opportunity to reduce their tax burden. Since the deadlines for submitting declarations are limited, timely document processing can ensure the return of part of the taxes paid. It is important to consider that the rebate does not carry over to subsequent years, so it is necessary to carefully plan one’s expenses and documents to not miss the chance for compensation.

As citizens navigate the process of obtaining a tax rebate, it's essential to be aware of common pitfalls in tax filing that could lead to penalties. Recent reports highlight the challenges faced by small businesses regarding tax compliance, which can serve as a cautionary tale for individuals as well. For more insights on these frequent filing mistakes, you can read about how small businesses are facing fines for their tax errors.