Salary increases, new taxes, and bank sales: key regulatory changes in 2026

Starting January 1, 2026, a dozen regulatory changes will come into effect in Ukraine. The most significant is the end of tax breaks for electric vehicles. Their import and sale will now be subject to VAT on a general basis. The minimum wage will increase, and students will receive larger scholarships.

Businesses can expect changes in taxes, the obligation to accept cashless payments, and expanded grant support. The government is also preparing to sell two state-owned banks. Read more about the new changes, legislation, and payments in the text LIGA.net

Duty-free car import benefits will end

Starting from January 1, 2026, the import and sale of electric vehicles in Ukraine will be subject to VAT on a general basis. The Cabinet of Ministers did not support The proposal of the people's deputies to extend tax benefits for another year was not taken into account in the draft state budget for 2026.

The import and supply benefits for electric vehicles are valid until the end of 2025. They were introduced in 2021 to stimulate the spread and development of environmentally friendly transport. The government explained the refusal by the risks of VAT under-receipts to the budget and the need to comply with obligations to the IMF.

Financial Payments and Changes

• Minimum wage

According to draft state budget For 2026, the minimum wage will be UAH 8,647 per month and UAH 52 per hour, starting from January 1, 2026. In 2025, the minimum wage was UAH 8,000. After taxes, the net minimum wage will be UAH 6,658.

Subsistence minimum for able-bodied persons will reach UAH 3328

• Scholarships

From September 1, 2026, in Ukraine will grow student scholarships. They were last reviewed four years ago. Since 2022, the standard academic scholarship is UAH 2,000, and the increased scholarship is UAH 2,910.

After the increase, their amounts will be UAH 4,000 and UAH 5,820, respectively.

• Pensions

The minimum pension in 2026 is expected to increase by 234 hryvnias – from 2,361 to 2,595 hryvnias, or by 9%.

UAH 1,027 billion is planned to be allocated for pensions, which is UAH 123 billion more compared to 2025.

• Childbirth assistance

Starting from January 1, the childbirth allowance will be UAH 50,000 immediately and UAH 7,000 monthly for childcare (UAH 10,500 for childcare for a child with a disability).

The "e-Nursery" program will also be launched for children aged one to three. This is a payment of UAH 8,000/month, which can be spent on paying for kindergarten, clubs, or other childcare services. (For a child with a disability, it's UAH 12,000/month).

The "baby package" will be provided, as before, in kind or as monetary compensation. It can be obtained from the 36th week of pregnancy.

The sale procedure for Sense Bank and Ukrgasbank will begin

The privatization of two state-owned banks in 2026 should move forward. This refers to Sense Bank and Ukrgasbank. Thus, by October 31, 2026, the government must to involve, to attract, to engage financial advisors for the sale of state-owned banks.

A tender will then be announced for potential investors, and the final step will be the signing of contracts. The size of the stakes to be put up for sale is not currently being disclosed.

There are currently seven state-owned banks in Ukraine: PrivatBank, Oschadbank, Ukreximbank, Ukrgasbank, Sense Bank, PIN Bank and Motor-Bank.

The sale is part of a large-scale process stipulated by the memorandum with the IMF to reduce the state's share in the banking sector. Currently, it exceeds 50%, while the optimal level is considered to be 25–30%.

Potential buyers of Sense Bank and Ukrgasbank may include to become strategic international investors and international financial institutions. In particular, the EBRD as a minority shareholder. Or large local banking groups, for example, Serhiy Tihipko's groups or TAScombank, which already have banking infrastructure, integration experience, and resources for scaling.

The corporate income tax for banks will be 50% again

For the third time, the Verkhovna Rada has approved an increase in the corporate income tax for banks to 50%. The Ministry of Finance expects this to generate an additional UAH 30 billion for the state budget in 2026.

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

The tax increase has a negative impact will affect Bankers say that the privatization of state-owned banks may reduce lending volumes. Small and medium-sized banks will be most affected by this.

There will be more grants for businesses.

The Cabinet of Ministers has updated the "Own Business" grant program. Starting in 2026, the state will increase grant amounts and expand the circle of those who can receive money to launch or develop a business.

Entrepreneurs can apply for a grant of up to UAH 100,000 (without creating new jobs), up to UAH 200,000 if they create one new job, and up to UAH 350,000 if they create two.

Special conditions have been provided for young people: Ukrainians aged 18–25 will be able to receive up to UAH 200,000 to start their own business.

The government has also expanded support for veterans and their families. Now, not only spouses but also parents, adult children, and people with disabilities resulting from the war can apply for grants. Up to UAH 1 million can be obtained, provided new jobs are created.

Entrepreneurs who have successfully implemented their first project will be able to receive another microgrant for business development.

Gas distribution tariffs for businesses will increase

The National Commission for State Regulation of Energy and Public Utilities (NCRECP) has revised the tariffs for natural gas distribution for non-household consumers for the first time since 2021.

The increase will take place in two stages – from January 1 and from April 1, 2026. According to the commission's calculations, the weighted average tariff will be UAH 1.56 per cubic meter per month (excluding VAT) from the beginning of the year, and will increase to UAH 1.89 from April.

Overall, tariffs will increase by an average of 62% starting in April. The increase will affect nearly 40 gas distribution network operators, most of whom have not had their rates reviewed for four years.

Tariffs for the population remain unchanged – their increase is prohibited for the duration of martial law and for six months after its termination.

Labor reform may start in 2026

The Ministry of Economy is preparing the final version of the updated Labor Code. The draft is planned to be submitted to the government for consideration in the near future, and then to the Verkhovna Rada. The reform is intended to update the rules in the labor market, reduce bureaucracy for businesses, and strengthen the real protection of employees.

The new Labor Code provides for the digitalization of labor procedures, a transparent mechanism for determining the minimum wage, and the expansion of types of employment contracts. The document enshrines clear rules for flexible forms of employment – remote work, flexible hours, and part-time employment. It also strengthens the protection of employees with family responsibilities, veterans, and people with disabilities, and working conditions are planned to be recorded in electronic format.

The new code is intended to bring Ukrainian labor law closer to EU standards and make it more understandable for both employees and businesses.

Changes for Entrepreneurs

• Taxes

Starting January 1, 2026, the tax burden for sole proprietors will increase due to higher social standards – the subsistence minimum and the minimum wage.

The subsistence minimum for able-bodied persons will be UAH 3,341, and the minimum wage will be UAH 8,647. Since some taxes are directly tied to these indicators, entrepreneurs will pay more, and the maximum annual income limits for the simplified system will also increase.

For sole proprietors of group 1, the total amount of taxes will be UAH 3,091 per month, and for group 2, it will be about UAH 4,496. In group 3, the single tax and military levy rates remain unchanged, but the single social contribution will increase to UAH 1,902 per month.

Annual income limits will also increase: to UAH 1.44 million for group 1, UAH 7.21 million for group 2, and over UAH 10 million for group 3. For entrepreneurs with employees, mandatory payroll deductions will also increase to almost UAH 3,900 per month for each employee.

• Reporting

From January 1, 2026, is being restored quarterly submission of a consolidated report, which includes tax returns for personal income tax, military tax, and the unified social contribution.

The new rules will apply to all sole proprietors, as well as to entrepreneurs on the general taxation system if they pay income to employees or other individuals.

The tax calculation will need to be submitted once a quarter – within 40 calendar days after its completion and only if there were actual payments in the reporting period. If the sole proprietor did not accrue income to employees or individual counterparties, the report does not need to be submitted.

• Cash registers

Starting January 1, 2026, new rules for businesses will come into effect in Ukraine: all entrepreneurs must accept cashless payments. This refers to payments by card, through mobile payment services, or other electronic methods. Businesses will no longer be able to refuse a customer's card payment, although cash is not prohibited.

These requirements apply to all sole proprietors, including those in the first group, both those who trade in markets and those who provide household services.

An exception was made only for entrepreneurs working in areas of hostilities, occupation, or blockade. At the same time, the obligation to use cash registers or software cash registers for sole proprietors of group 1 does not appear from 2026: the requirement to have cashless payment does not mean the introduction of cash register equipment.