NBU against extension of increased corporate income tax rate for banks

The National Bank has opposed extending the higher corporate income tax rate for banks.

This is stated in a press release from the NBU, the Ukrainian News agency reports.

On May 20, Bill No. 15262 was registered in the Verkhovna Rada, which provides for the application of an increased income tax rate for banks at 50% for 2027.

The NBU noted that the 50% bank income tax was accepted with understanding by the banking sector in 2023 as a one-time, necessary measure, given the “non-market nature” of profits in that year. However, continuing this practice under current conditions poses a threat to further credit expansion and, more broadly, to banks’ ability to support the country’s economy to the necessary extent amid the war and post-war reconstruction.

The regulator believes that the extra tax significantly limits banks’ lending capacity, and the effectiveness of such a measure for the budget is questionable. Furthermore, such a tax creates a disproportionate burden, discriminates against the industry, and deters investors.

"The country’s economy needs support, and for full-fledged support, the banking system (which is ten times smaller in terms of capital than that of neighboring Poland) must grow. The extra tax negates this growth. Ultimately, such piecemeal decisions do not diminish the relevance of systemic reform aimed at broadening the tax base, particularly through the de-shadowing of the economy, in accordance with the memorandum with the IMF. Instead, a systemic increase in the tax burden on the most transparent segment of the economy encourages tax arbitrage and undermines efforts to bring the economy out of the shadows," the NBU concluded.

As the Ukrainian News agency earlier reported, during 2023–2024, the government decided to tax banks’ excess profits at the end of the year.

However, in 2025, the tax was not raised, and banks paid corporate income tax at the base rate of 25%.

For 2026, the tax on bank profits was raised again to 50%.

To request a correction, please send an email.