On 19 October 2023, the Ukrainian Parliament (Verkhovna Rada) passed Draft Law 9656-d in the first reading. Accordingly, Ukraine proposes to temporarily double the corporate income tax rate from 18% to 36% for banks for tax periods starting from 1 January 2024 to 31 December 2025.
Simultaneously, banks will be prohibited from offsetting the current tax period’s financial result before taxation by the negative value of the taxable item from the taxpayer’s previous tax periods.
The purpose of increasing the tax rate is to provide additional revenues to the budget in the amount of approximately UAH 10 billion to finance military expenses.
