Tax upon purchase real estate is an additional and mandatory cost item that novice investors so often forget about when buying a home. The tax system of Ukraine by no means approves of such "sclerosis" and reacts harshly to its manifestations. Earlier, we would once again remind you about how important it is to put an additional amount in the budget to cover incidental expenses and taxes in particular, but this time we decided to consider the issue from the other side and not to warn you about taxes, but to congratulate you on them. If you think that THE Capital's editors are overheated in the remnants of summer heat, they are not, because the tax can really be a reason for joy. With the only clarification that it is not about its payment, but about deduction.
Who and how can get a tax deduction
Before proceeding to receive a deduction, you need to understand what it is. This is a pleasant state mechanism for citizens, the essence of which is to reduce the amount of tax that must be paid by individuals or legal entities. The recalculation takes place due to taking into account certain costs and amounts that are subject to exclusion from the tax base. The possibility of deduction is clearly recorded in Article 166 of the Tax Code of Ukraine (PKU). According to it, every citizen has the right to legally reduce the amount of tax by using a deduction that allows to reduce the tax burden. It is worth clarifying: by "every citizen" we mean only those who have official employment and are resident of Ukraine, because in order to return income tax, one must first be a payer of these same taxes. There is also a nuance regarding individual entrepreneurs. They cannot count on concessions from the state, since its generosity does not extend to business activities.
So, when buying an apartment, you can count on a tax deduction if:
- the apartment was acquired;
- the apartment was purchased with a mortgage.
The size of the "discount" does not depend on the cost of the home, but solely on the amount of tax paid for its purchase. Only those persons who are registered at the address of the purchased real estate can count on manifestations of generosity from the state.
☝️ If the area of the apartment is more than 100 m², the deduction will be based on a reduced coefficient.
What documents are required to issue a tax deduction
If you meet all the requirements, it's time to start preparing the necessary documents for the deduction. You should have:
- a copy of the passport;
- a copy of the identification code;
- certificate of income;
- documents confirming the act of purchasing real estate;
- power law to the object;
- certificate of marital status;
- a document certifying the amount of income tax paid for the previous year (PTFO).
You will have to contact the State Tax Service of Ukraine to issue a deduction. This can be done both in person and remotely.
Before moving on to the question taxes, it is worth choosing a decent investment option. A worthy assistant will not hurt in this difficult process. THE Capital has been working for the benefit of its clients for years. We masterfully identify priorities and know how to find their embodiment in concrete objects.
