On taxes and other obligatory payments to the budget (Tax Code)

Article 343. Features of application of tax deductions by a tax agent

1. Tax deductions, except for tax deductions in the form of mandatory pension contributions, are applied by a tax agent at the source of payment on the basis of:

1) an application for tax deductions of an individual;

2) copies of supporting documents. Such copies shall be retained by the tax agent within the limitation period set by paragraph 2 of Article 48 of this Code.

2. In case of change of a tax agent within a calendar year, except for cases of its reorganization, the unused amount of the tax deduction formed by the previous tax agent is not recognized by the new tax agent.

The provision of this paragraph does not apply to standard deductions specified in subparagraphs 2) and 3) of paragraph 1 of Article 346 of this Code, with respect to which the excess of the tax deduction formed by the previous tax agent is recognized by the new tax agent within the limits established by this Code. In this case, an individual provides a statement of settlements with an individual issued by a previous tax agent.

3. An individual shall have the right to apply for a taxable period a certain type of tax deduction from only one tax agent, except for tax deductions in the form of compulsory pension contributions and contributions to compulsory social health insurance.

4. If tax deductions are not applied by a tax agent to the income of an individual due to the individual’s applying after the withholding of individual income tax from such income, then the individual, during the calendar year in which the payment of income was made and the calendar year preceding it, has the right to submit to the tax agent, who deducted the individual income tax from such income, the application and supporting documents, based on which the tax agent shall recalculate the taxable income.