Is there a 12% refund when paying for a student contract?
According to paragraph 16 of Article 378 of the Tax Code, the tax is directed to training in vocational and higher educational institutions of the Republic of Uzbekistan (education of one's own children or children under the age of 26 or husband (wife)) for wages and other income due not taxed.
Thus, income tax is not withheld from funds paid under the following 3 categories of contracts:
if a citizen lists it on his contract;
if parents transfer their child under the age of 26 to the contract;
if the husband or wife is transferring to the contract of a spouse under the age of 26 years.
Who is eligible for this benefit:
1) students of vocational education (vocational schools, colleges and technical schools);
2) students of higher educational institutions.
A tax deduction is available when paying from:
own funds;
educational loans provided by commercial banks to individuals;
funds (loans) provided by legal entities to individuals with the condition of return.
The tax deduction can be used by filing an annual income declaration, when the payment is made independently, and not from the salary.
Note. When paying for the contract of other persons other than the above 3 categories, for example, brother, sister, son-in-law or daughter-in-law or other persons, benefits do not apply.