In view of this, it is considered appropriate to provide tax benefits for those employers who introduce a dual form of training, in particular, VAT benefits (Table 4.5).
There is no definition of the term «scholarship» and the procedure for assigning and paying scholarships to individuals who are studying in higher education.
According to paragraphs 165.1.26 TCU to the total monthly (annual) taxable income of the taxpayer does not include «the amount of the scholarship (including the amount of its indexation, accrued in accordance with the law), which is paid to a student, cadet of military schools, resident, graduate student or associate professor, but not higher than the amount specified in the first paragraph of subparagraph 169.4.1 of paragraph 169.4 of Article 169 of this Code. The amount of the excess, if any, is subject to taxation at the time of its accrual (payment) at the rate specified in paragraph 167.1 of Article 167 of this Code».
Therefore, scholarships paid, including to a student, by any persons (including business entities) in the amount equal to the monthly subsistence level valid for an able-bodied person on January 1 of the reporting tax year are not subject to personal income tax multiplied by 1.4 and rounded to the next 10 hryvnias (in 2021 – 3,180 hryvnias). The military fee is not paid from this amount (item 1.2 item 161 of subsection 10 of section XX of the TCU). If the amount of the scholarship exceeds UAH 3,180, the amount of the excess is subject to personal income tax and military duty.
However, the current legislation does not define the term «scholarship», which leads to difficulties in applying for this benefit. Therefore, the TCU should provide a definition of the term «scholarship».