Persons who have the status of internally displaced persons have the right to receive a tax discount for the expenses incurred for housing rent. In accordance with the legislation, such taxpayers can include in the tax deduction the sums of funds actually paid by them during the reporting tax year for the lease of residential premises (apartment or house) on the basis of a concluded lease agreement. This was reported by the Main Directorate of the DPS in the Ivano-Frankivsk region.
In order to take advantage of this opportunity, it is important that the taxpayer himself or members of his family of the first degree of kinship do not own habitable housing outside the temporarily occupied territory of Ukraine, and also do not receive state payments intended to cover living expenses.
A tax discount can be obtained on the basis of Art. 166 of the Tax Code of Ukraine, where the rules and conditions of its provision are prescribed. To do this, the taxpayer must reflect the reasons for the discount and the amount in the annual tax return on assets and income, which must be submitted by December 31 of the year following the reporting year.
The size of the tax discount should not exceed 30 times the minimum wage established on January 1 of the reporting year.
In order to receive a tax discount for housing rent, an internally displaced person must submit the following documents to the relevant supervisory authority:
- tax declaration on assets and income;
- a copy of the certificate of registration of an internally displaced person;
- a copy of the housing lease agreement;
- copies of payment and settlement documents confirming the fact of rent payment (except for electronic ones);
- a statement with data on the existence of grounds for receiving a tax discount in accordance with current legislation.
Additional documents that can confirm the right to receive a tax discount include an extract from the State Register of Real Property Rights, information from the social protection authorities on the provision of targeted assistance to cover living expenses, etc.
We remind you that the fact of internal displacement is confirmed by a certificate issued in accordance with the Law of Ukraine dated October 20, 2014 No. 1706-VII “On ensuring the rights and freedoms of internally displaced persons”, as amended. Internally displaced persons are obliged to notify the tax authorities of changes in data, in particular, the address of registration and the actual place of residence, by submitting an application for making changes to the State Register of natural persons – taxpayers using form No. 5DR.
