Rada raises bank profit tax to 50% for the third time

On Wednesday, the Verkhovna Rada voted in the second reading and as a whole on draft law No. 14097, which provides for a temporary increase in the bank profit tax to 50% (currently 25%). It was supported by 272 MPs.

The Ministry of Finance expects that this will allow the state budget to receive an additional UAH 30 billion in 2026.

The NBU believes that the tax increase will not bring in the money the authorities expect.

"It will not meet the fiscal expectations currently declared, but it may have restrictions on activities and may provoke the need for additional capitalization of state-owned banks, which will be financed from the state budget," the NBU governor said Andriy Pyshnyi at the end of October.

In the first three quarters of 2025, Ukrainian banks received record UAH 119.4 billion of net profit - 1.9% more than in the same period of 2024.

Chairman of the Tax Committee Danylo Hetmantsev reportedthe MPs adopted some amendments for the second reading:

→ postponing the launch of e-excise until November 1, 2026;
→ exempting banks from acting as tax agents in cases of bankruptcy of individuals;
→ extension of VAT exemptions in the energy sector until January 1, 2029;
→ extension of VAT exemptions for UAVs, thermal imagers, anti-drone guns and other defense equipment until January 1, 2027;
→ improvement of the rules for the High Tax Trust Territory (White Business Club);
→ abolition of the single tax for security activities;
→ abolition of the obligation to accrue compensatory VAT liabilities for transactions exempt from taxation in accordance with subpara. 5 of clause 32 of subsection 2 of section XX of the Tax Code;
→ amendments to the Law "On the Audit of Financial Statements and Auditing Activities".

• The Verkhovna Rada for the first time introduced 50% tax on bank profits in 2023. It was planned that this would be a one-time measure, and starting in 2024, the base rate would be reduced to 25%, but in October 2024, MPs increased it again to 50%.
• In 2025, banks will pay income tax at the basic rate.