Ukraine has signed Law 4015-IX (The Law on Amendments to the Tax Code of Ukraine and Other Laws of Ukraine to Ensure the Balance of Budget Revenues during Martial Law) into law on 28 November 2024. One key provision of this new law is the increased corporate tax rate for banks.
In 2023, a 50% tax rate was introduced for banks, which was lowered to 25% in 2024. This 25% rate applies to bank dividend distributions and controlled foreign company (CFC) profits. From 1 January 2025, the 25% rate will cover all financial institutions, excluding insurance companies. However, the previous 50% rate for banks will go into effect again in 2024.
Other measures include introducing advance corporate income tax payments for retail fuel traders and increasing the minimum tax liability per hectare of arable land to UAH 1,400.
Furthermore, the new law introduces an increase in the military tax for individuals, raising it from 1.5% to 5.0%, effective 1 December 2024.
These measures will take effect from 1 December 2024, except the shift to monthly reporting which will commence on 1 January 2025.
