The Rada recommended extending the 50% tax on bank profits

The Verkhovna Rada’s Tax Committee has recommended the adoption of Bill No. 15262, which extends the 50% increased corporate income tax rate for banks through 2027. This decision is driven by the windfall profits of financial institutions, which, according to last year’s results, earned UAH 579.3 billion in revenue, primarily from transactions involving government securities during the war. 

The proposed bill also prohibits banks from reducing their pre-tax financial results by the amount of losses recorded in previous periods. According to preliminary estimates by the Ministry of Finance, the adoption of this legislative initiative will allow for an additional UAH 50 billion to be raised for Ukraine’s consolidated budget based on the results of the 2027 tax periods. Currently, there are 60 banking institutions operating in the country whose profits fall under the scope of this regulation.