Profit tax rate for banks raised to 50% in Ukraine

MOSCOW. Dec 25 (Interfax) - Ukrainian President Vladimir Zelensky has signed into law a bill doubling the profit tax rate for Ukrainian banks to 50% in 2026, Ukrainian media reported, citing head of the parliamentary committee on finances, tax and customs policy Daniil Getmantsev.

The committee's first deputy head Yaroslav Zheleznyak, for his part, said that Ukrainian banks would make profit tax payments at this rate on a quarterly basis in 2026 and in the first quarter of 2027, bringing an additional UAH 15 billion-23 billion in 2026 and around UAH 5 billion in 2027 to the budget.

It is already the third time the profit tax rate for banks has been raised since the start of the crisis, this time to 50%. However, in 2023 and 2024, the Verkhovna Rada adopted this decision retrospectively, in the fall.

In addition, the new law postpones the launch of the electronic excise tax until November 1, 2026, exempts banks from tax agent functions in case of individuals' bankruptcy, and extends VAT relief measures in the energy sector until January 1, 2029.