Internally Displaced Persons (IDPs) in Ukraine have gained the opportunity to recover part of the personal income tax (PIT) paid, offset against expenses for housing rent. The refund mechanism is regulated by the State Tax Service (STS) and requires compliance with specific procedures and the submission of a package of documents.

The essence of the tax deduction

The tax deduction allows the taxpayer to reduce the amount of tax they owe to the state by the amount of actual expenses incurred during the reporting year. In this case, we are talking about rent expenses. It is important to understand that a refund is possible only with documentary confirmation of these expenses.

To exercise the right to a refund, it is necessary to submit an annual tax declaration on property status and income. The deadline for submitting such a declaration is December 31 of the year following the reporting year.

Key conditions for obtaining the deduction

The right to a tax deduction for housing rent does not arise automatically, but only upon compliance with two mandatory conditions:

  • Absence of own housing: The taxpayer and members of their immediate family must not own housing suitable for living. An exception is made only for real estate located in temporarily occupied territories.
  • Absence of budget compensation: The taxpayer must not receive budget payments provided by legislation intended to compensate for living expenses.

Required package of documents

To confirm the right to the deduction, the following list of documents must be submitted to the tax authority at the place of registration:

  • Tax declaration on property status and income.
  • Copy of the certificate of registration as an IDP.
  • Copy of the housing rental agreement (must be in written form).
  • Documents confirming the actual payment of rent (receipts, checks, payment orders).
  • Information for the identification of family members.
  • Documents confirming the absence of conditions that deprive the right to the deduction. This may be an extract from the State Register of Property Rights to Real Estate or a certificate from social protection authorities about not receiving targeted assistance.

Important nuances of registration

The key document confirming rental relations is a written rental agreement. It must clearly indicate the cost of services and payment terms. Actually incurred expenses must correspond to the data in the agreement and be confirmed by payment documents.

The declaration must be submitted to the tax authority where the taxpayer is registered. If the IDP's address of residence or other personal data has changed, the citizen is obliged to notify the tax service by submitting an application to make changes to the State Register of Physical Persons — Taxpayers.

Expansion of rights from 2026

It is worth noting that legislation continues to change in favor of participants in hostilities and those affected by the war. From January 1, 2026, the right to a tax deduction for housing rent expenses will also be granted to participants in hostilities and persons with disabilities acquired as a result of the war.