Ukrainian banks will pay income tax at a doubled rate of 50% in 2026.
The corresponding law (No. 14097) on amendments to the Tax Code of Ukraine regarding the specifics of income tax for banks in 2026 was adopted by the Verkhovna Rada on Wednesday with 272 votes in favor, with a minimum of 226 votes required, according to a correspondent from the Interfax-Ukraine news agency.
According to Yaroslav Zheleznyak, first deputy chairman of the relevant parliamentary finance committee, banks will pay tax at this rate on a quarterly basis next year and in the first quarter of 2027, which should bring an additional UAH 15-23 billion to the budget in 2026 and about UAH 5 billion in 2027.
This is the third tax increase for banks to 50% since the start of Russia’s full-scale invasion, but the first two times — in 2023 and 2024 — the Rada made this decision retroactively in the fall.
At its meeting on October 30, the Financial Stability Council (FSC) noted the systemic risks that could be created by the introduction of a 50% tax rate on bank profits from 2026.
“Raising the tax rate for banks to 50% creates risks of limiting lending to the economy and weakening financial stability in wartime,” the FSC emphasized.
Council members also noted that the expected fiscal effect of raising the rate to 50% may turn out to be significantly lower than publicly communicated estimates.
Among other risks, the FRS cited possible complications in the privatization of banks with state ownership, failure by some institutions to implement capitalization programs within the specified time frame, difficulties in timely compliance with capital adequacy requirements in accordance with EU standards, the risk of violating the obligations under the Memorandum with the IMF, as well as a reduction in incentives to de-shadow the economy.
The National Bank also noted that banks and financial companies already have a higher level of income taxation compared to other sectors of the economy – 25% versus 18%.
According to the NBU, Ukrainian banks earned UAH 131.7 billion in net profit in the first 10 months of 2025, which is 4.9% more than in the same period of 2024, and paid 2.1% more income tax – UAH 34.7 billion.
