Financial sector news

The President of Ukraine has signed a law amending the Tax Code regarding the specifics of income tax for banks in 2026. The corresponding bill No. 14097 was returned with the president's signature on December 24, according to the parliament's website.

In particular, the law provides for an increase in the income tax rate for banks in 2026 to 50% with a simultaneous ban on reducing the financial result before taxation by the amount of losses from previous periods. It is expected that this will allow the state budget to collect an additional UAH 30 billion in 2025.

The document also improves the rules for the High Level of Tax Trust Territory (White Business Club) and contains the following new provisions:

• postponement of the introduction of e-excise until November 1, 2026;
  
• exemption of banks from performing the duties of a tax agent in the event of bankruptcy of individuals;
  
• extension of VAT exemptions for the energy sector until January 1, 2027;
  
• extension of VAT exemptions for UAVs, thermal imagers, anti-drone guns, etc. until January 1, 2027;
  
• abolition of the single tax for security activities;
  
• abolition of the obligation to accrue compensatory VAT liabilities in the case of transactions exempt from taxation on the basis of subparagraph 5 of
• paragraph 32 of subsection 2 of section XX of the Tax Code;
  
• some amendments to the Law “On Auditing of Financial Statements and Auditing Activities.”