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LETTER OF THE STATE TAX SERVICE OF UKRAINE

of August 17, 2012 No. 1040/0/71-12/17-1117

About release from taxation of personal income tax of the amount of state support on construction or acquisition of affordable housing

This time in Ukraine is affected by two budget programs of providing citizens with affordable housing.

First program: "Provision of the state support for construction (acquisition) of affordable housing" (KPKRK 2751190) is implemented according to resolutions of the Cabinet of Ministers of Ukraine of February 11, 2009 No. 140 and of February 29, 2012 No. 193, which approve the Procedure for providing citizens with affordable housing (No. dalsheporyadok 140) and the Procedure for use of the means provided in the government budget for provision of the state support for construction (acquisition) of affordable housing (further - the Procedure for No. 193) respectively.

The procedure No. 140 determines the mechanism of providing citizens with affordable housing according to the State target social and economic program of construction (acquisition) of affordable housing for 2010 - 2017 approved by the resolution of the Cabinet of Ministers of Ukraine of November 11, 2009 No. 1249.

Providing citizens with affordable housing is performed by provision of the state support which consists in payment of 30 percent by the state of construction cost (acquisition) of affordable housing and/or provision of the soft mortgage housing credit.

The procedure No. 193 determines the mechanism of use of the means provided in the government budget according to the "Provision of the State Support for Construction (Acquisition) of Affordable Housing" program.

The main manager of budgetary funds and the executive in charge of the budget program is the Ministry of Regional Development of Ukraine, receivers of budgetary funds - the Public specialized financial institution "State Fund of Assistance to Youth Housing Construction" and its regional governments (item 2 of the Procedure for No. 193).

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