In the package of tax legislation amendments the Ministry of Finance proposes to lift barriers which do not let talented youth to study using the funds of employers, sponsors or donators.
What’s it all about?
The Ministry of Finance proposes to grant an exemption from the income tax to funds paid by any legal entity or private person to higher or vocational education institutions for the training or re-training of students or employees. Also, working students or their relatives who pay tuition fees will be able to deduct them without restrictions from their taxed income.
What is the advantage?
This step shall motivate employers, sponsors and donators to pay tuition fees for talented youth and for the qualification upgrade of their employees.
• The current legislation grant a tax exemption only for tuition fees amounting 1930 hryvnas per month in 2016 which are paid by employers to education institutions training their employees or other individuals, if this individual has a contract with the respective employer obliging him to work for at least 3 years after the graduation;
• Currently, restrictions also apply to the amount of the tuition fees which is deducted from the taxed income of a tax payer or her/his first grade relatives (tuition fees in 2016 should not exceed 1930 hryvnas).