Who is eligible for a tax deduction and how to obtain it

Ukraine’s tax system provides for the possibility of returning part of the paid personal income tax (PIT) in the form of a tax rebate. This is a widespread global practice of social support for citizens, allowing them to compensate part of the expenses for purposes determined by the state. The latest changes in tax legislation have detailed the list of expenses for which citizens may receive a rebate and the procedures for filing returns. This article explains in detail who and in what situations is entitled to a tax rebate, and how to exercise this right in 2025.

Legal Basis of the Tax Rebate
The concept and mechanism of providing a tax rebate are stipulated in Article 166 of the Tax Code of Ukraine. The rebate is considered to be an amount (defined and supported by documents) by which the taxpayer’s annual taxable base may be reduced. In other words, paid PIT may be partially refunded to the taxpayer if, in the reporting year, they incurred expenditures on the areas defined by law.

Who is Entitled to a Tax Rebate
The right to the rebate is granted to Ukrainian citizens—individuals who:

• received income as salary or equivalent earnings, from which PIT was duly paid;
• actually incurred expenses specified in the Tax Code during the reporting year;
• have an identification (registration) tax number;
• can document these expenditures.

Important: Recipients of the rebate cannot be military personnel (as their monetary support is not considered salary under the Tax Code), individuals who do not have official salary income with PIT payment, or those who cannot document their expenses.

List of Expenses Giving the Right to a Rebate
Here are the main types of expenses eligible for a tax rebate in 2025 (for expenses incurred in 2024):

1. Interest on a mortgage loan, if the dwelling is designated as the principal place of residence.
2. Charitable donations made to registered nonprofit organizations.
3. Tuition fees paid to Ukrainian educational institutions (of any form of ownership)—both for oneself and for children or other first-degree relatives.
4. Contributions under long-term life insurance contracts and pension contributions for non-state pension provision.
5. Amounts paid for assisted reproductive technologies or state services related to adoption.
6. Expenses for converting a vehicle to run on alternative fuels.
7. Costs of purchasing affordable housing under state programs or repaying preferential mortgage loans.
8. Rent for accommodation (only for internally displaced persons without own housing).
9. Funds spent on purchasing shares of Diia City resident companies—under certain conditions only.

A special procedure applies to tuition rebates: part of the expenses can be reimbursed by the student, their parents, or spouse, if they are officially employed and pay PIT. The form of study, the child’s age, level of education, or type of institution do not matter.

Expenses That Do Not Lower PIT
Expenses paid from the budget or by the employer, foreign expenses (except in certain cases), and undocumented expenses are not included in the tax rebate. The rebate cannot be carried over to subsequent years: if the application is not submitted on time, the right to the rebate for the previous year is lost.

How to Apply for and Receive a Tax Rebate—Step-by-Step

1. Gather documents.
   • Copies of payment documents (receipts, checks, payment orders);
   • Contracts for relevant services or purchases (e.g., with educational institutions, banks, insurance companies, etc.);
   • Documents proving the degree of kinship (if expenses are for children or other individuals);
   • Copy of the tax ID and passport.
2. Complete the income and asset declaration.
   • The declaration is filed for the previous year (in 2025—for 2024 expenses).
   • Pay special attention to the correct sections describing expenses eligible for the rebate.
3. Submit the declaration:
   • In person at the tax authority at the place of registration;
   • By mail with notification of delivery;
   • Through the taxpayer’s electronic office (with an electronic signature).
4. Wait for the decision.
   • After reviewing the documents, the tax service recalculates the tax;
   • The appropriate amount is refunded to the taxpayer’s bank account.

Filing Deadlines for the Tax Rebate Application
Documents must be filed from January 1 to December 31 of the year following the reporting one. Thus, for 2024 expenses, apply in 2025 no later than December 31. Missing the deadline leads to loss of the right to reclaim PIT for that period.

Refund Amounts and Limitations
The refund amount depends on the type of expense and the limits set by the Tax Code. For example, the rebate for rent paid by IDPs is capped at no more than 30 minimum wages per year (in 2024, this is 213,000 hryvnias). There are also certain limits for life insurance and private pension expenses. Charitable contributions have set income share limits.

Typical Mistakes and Q&A
Common mistakes include submitting an incomplete package of documents, including expenses not eligible for rebates, or failing to file the declaration in the current year. It is essential to confirm all expenses with original documents and submit copies with the declaration.

Conclusion
The tax rebate mechanism allows Ukrainians to partially recover paid PIT and thereby save on important expenses—education, mortgage, insurance, charity, etc. While rebate processing is not a complex bureaucratic process, it requires care and document collection. Citizens should monitor legislative changes and meet filing deadlines to enjoy legal financial state support.

It is advisable to consult tax advisors in advance or use the taxpayer’s electronic office to avoid mistakes and guarantee the timely return of the PIT amount as prescribed by law.

Author: Maksym Bahniuk, Head of the Tax and Customs Law Practice, Winner Law Firm.