Ukraine’s new law increases banks’ corporate tax, restricts loss deductions, and updates rules on property, debt, and compliance.
Ukraine has enacted Law No. 4698-IX, published in the Official Gazette on 26 December 2025, introducing significant amendments to the country’s Tax Code and related legislation. Under the new law, banks will face a corporate income tax rate of 50% for all tax periods in 2026.
The legislation prohibits banks from deducting losses carried forward during 2026; such deductions, including those incurred in 2026, will only be allowed from 2027.
The law also postpones the launch of the Electronic System for tracking alcohol, tobacco, and vaping products until November 2026. It also provides clarity on tax exemptions for forgiven debts, protecting individuals with foreign currency mortgages or those experiencing insolvency from certain liabilities.
Additionally, property tax assessments for assets located in active combat zones or occupied territories have been adjusted to offer financial relief to owners. The legislation further tightens the criteria for “compliant taxpayers” and updates auditing standards and security-related regulations.
