Bank profit tax will increase to 50%: Zelensky signs law
25 December 01:18
On December 24, President of Ukraine Volodymyr Zelenskyy signed Bill #14097, which significantly changes the tax rules for the banking sector. The document provides for an increase in the corporate income tax rate for banks to 50%. This was announced by MP Danylo Hetmantsev, "Komersant Ukrainian" reports
When banks will start paying under the new rules
According to Mr. Hetmantsev, the key provision of the law is the increase in taxation of bank profits. The new rate will take effect in 2026, meaning that banks will pay a 50% tax on profits earned in the relevant tax period.
According to preliminary estimates, this decision may bring the state budget UAH 15 to 23 billion in the first four quarters of 2026 alone, and about UAH 5 billion more in the first quarter of 2027.
What other provisions does the law contain?
In addition to the tax increase for banks, the draft law signed by the President contains a number of other important provisions:
- electronic excise tax (e-excise) has been postponed until November 1, 2026;
- banks will lose the status of tax agents in bankruptcy proceedings of individuals;
- vAT exemptions have been extended: until January 1, 2029 – in the energy sector; until January 1, 2027 – for the supply of drones, anti-drone guns and other defense and security equipment;
- the single tax for security activities was canceled;
- changes were made to the calculation of compensating VAT liabilities;
- updated the provisions of the Law “On Audit of Financial Statements and Auditing Activities”.
As a reminder, the Verkhovna Rada of Ukraine adopted Draft Law No. 14097 as a whole on December 3, 2025. Discussions on the next tax increase for banks have been ongoing since mid-2025. At that time, the government and parliament predicted that the new rate, which will start on January 1, 2026, could bring up to UAH 30 billion in additional revenues to the budget.
It is worth noting that this is the third increase in the bank profit tax in recent years. Similar decisions were made in the fall of 2023 and 2024, but then they were temporary and applied retroactively. The current law was voted in advance, which, according to the authors, should give the banking sector time to adapt to the new fiscal environment.
