Page 80 - UKRRptDec23

Bank profit tax increased to 50% in 2023 and 25% in subsequent years.The Ukrainian Parliament adopted a draft law on a temporary increase in the bank tax rate from an 18% to 50% tax on profits in 2023 and a permanent increase to 25% in the following years. The draft law passed in the first reading on October 19 temporarily increased the income tax to 36% in 2024-2025. In 2023, the law prohibits banks from applying losses from previous years to the current year’s profit, but this will become possible again in 2024. According to the Ministry of Finance, this will bring ₴24-25B ($650M) to the budget in 2023 alone. In the following years, this amount will be ₴6-7B. According to the NBU, the net profit from solvent Ukrainian banks for 10 months of the year reached a record ₴109.9B. The Independent Bank Association of Ukraine believes that a bank profit tax increase to 50% will help the defense sector and not affect the banking system's stability. However, increasing this tax to 25% in the following years will create risks.
8.1.1 Earnings
According to data from the National Bank of Ukraine (NBU), the net profit generated by solvent Ukrainian banks reached an unprecedented UAH109.9bn ($3bn) in the first ten months of the year.
Solvent banks received ₴109.9B in net profit for the nine months of the year, compared to ₴7.4B for the same period last year, the NBU reported.
The Ukrainian Parliament approved a draft law that hikes bank profit taxes to 50% on November 22 in a bid to raise more money for the cash-strapped government.
80 UKRAINE Country Report December 2023 www.intellinews.com