A number of incomes of individuals are exempt from taxation by law. The composition of these revenues is defined in Article 378 of the Tax Code.

According to paragraph 16 of this article, the taxpayer's taxable wages and other income are exempt from income tax for payments of up to 3 million soums per month paid by parents (adoptive parents) for educational services provided to children by non-state preschool educational organizations and (or) schools.

According to this rule, if parents send their children to a private school or kindergarten, the salary of up to 3 million soums allocated for their education is exempt from income tax.

Considering that this benefit is provided for each child, if a parent sends 2 children to a private kindergarten, then income up to 6 million soums will be exempt from tax.

There are 2 ways to use the benefit:

The first is applied when withholding income tax from wages. That is, parents must submit an application on behalf of the employer for the transfer of their children from wages to a private school or kindergarten for payment, and this application must be accompanied by a contract concluded with a private school or kindergarten.

In this case, the employer, as a tax agent, in accordance with Article 386 of the Tax Code, calculates income tax from the wages of employees and applies the tax benefit in the process of directing it to the budget. In this case, the benefit is applied automatically, and the portion of wages allocated to private education is not subject to taxation.

Secondly, according to Article 103 of the Tax Code, if parents, after receiving their salary, refer their children to a private school for education, they have the right to a refund of overpaid tax. For this, on the basis of Article 105 of this Code, parents are required to submit an application to the tax authority for tax refund. The application can be submitted in writing with a visit to the territorial tax authority.

Also, in electronic form, a declaration of total annual income is filled out through this link. After that, an application is submitted on the my.gov.uz website for the refund of the overpaid tax amount by the LLC.

In this case, the amount of excessively collected tax is returned to the taxpayer within fifteen days from the date of receipt of the application.

Basis: Legal Service