How to Get a Partial Refund on University Tuition: Who Is Eligible for a Tax Deduction

Ukrainians who pay for education at higher education institutions can get back part of the money paid for tuition. To do this, it is necessary to use the right to a tax deduction and submit a declaration of property status and income. This right is provided for by Article 166 of the Tax Code of Ukraine.

The tax deduction applies to income in the form of salary. Therefore, to receive it, a person must have taxable income from which personal income tax (PIT) was paid.

Whose education can the tax deduction be claimed for

A taxpayer can include in the tax deduction the funds they paid for education at an educational institution.

In particular, a tax deduction can be obtained for payment of education for:

• the taxpayer themselves;
• a first-degree family member;
• a person under the taxpayer’s guardianship or care;
• a child placed in a foster family or family-type orphanage, if the taxpayer has the corresponding status of guardian, custodian, foster father, foster mother, or caregiver father or mother.

First-degree family members are parents, husband or wife, and children.

This means, for example, that parents can claim a tax deduction if they pay for their child’s contract education at a Ukrainian university. Likewise, a student can use the deduction for their own education if they pay for it themselves and are eligible for the tax deduction.

Can the deduction be claimed for several years of education

The tax deduction is calculated separately for each reporting year.

If education lasts several years, the taxpayer can submit documents for each year separately. Only those expenses actually incurred and paid during the respective calendar year are included in the calculation.

In particular, the following documents are required to obtain a tax deduction:

• documents confirming actual payment of tuition during the respective reporting year — receipts, fiscal or sales checks, cash receipts, or other payment and settlement documents;
• a copy of the contract with the educational institution, if such a contract exists, indicating the cost of educational services and the payment period;
• a document confirming the fact of education;
• documents confirming the family relationship with a first-degree family member if the deduction is claimed for their education;
• documents confirming the taxpayer’s income and payment of PIT for the respective reporting year.

Copies of the documents specified in subparagraph 166.2.1 of Article 166 of the Tax Code of Ukraine are submitted together with the tax declaration. Originals are not sent to the controlling authority, but the taxpayer must keep them for the statute of limitations period established by the Tax Code of Ukraine.

If expenses are confirmed by an electronic payment document, the taxpayer indicates only the details of such a document in the declaration.

At the same time, the controlling authority has no right to demand documents or their copies from the taxpayer to confirm expenses if the relevant information is already contained in automated information and reference systems, registers, and databases of state authorities or local self-government bodies and can be obtained free of charge by the controlling authorities in accordance with the Tax Code.

To receive a tax deduction, the taxpayer submits an annual declaration of property status and income and documents confirming the relevant expenses and circumstances giving the right to the deduction. The declaration can be submitted until December 31 inclusive of the year following the reporting tax year.

What students and parents should know

A tax deduction is not a benefit automatically granted to all students or parents. To receive it, it is necessary to:

• have official income from which PIT was paid;
• actually pay for education;
• study or pay for education at a domestic educational institution;
• have documents confirming payment and the right to the deduction;
• submit a declaration to the controlling authority within the established deadline.

Thus, a person who officially works and pays personal income tax can get back part of this tax after paying for education at a domestic higher education institution. To do this, it is necessary to confirm expenses and submit a declaration of property status and income within the period provided by the Tax Code of Ukraine.

Also, subparagraph 166.3.3 of paragraph 166.3 of Article 166 of the Tax Code provides for the possibility of including expenses for tuition only at Ukrainian educational institutions in the tax deduction. Therefore, expenses for education at a foreign university are not included in the tax deduction under this mechanism.

A tax deduction does not mean a refund of the entire amount paid for education. The mechanism works so that the amount of confirmed education expenses reduces the taxpayer’s taxable income. As a result, the state returns part of the personal income tax actually paid during the year. Therefore, it is possible to get back no more than the amount of PIT actually paid by the person during the respective year.

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