Advanced search

Two draft laws have been registered in the Verkhovna Rada that outline a system of partial reimbursement for investment costs through tax reductions. The compensation will cover expenses such as constructing engineering networks, structures, and related infrastructure; purchasing or building production facilities, as well as their modernization and technological upgrades; acquiring new equipment and components; and land acquisition costs. The partial reimbursement of costs is proposed to be achieved by lowering certain tax obligations, including income tax, import VAT on

Despite a decline in the number of tourists and many companies leaving the market altogether, the hotel industry is experiencing growth: Hotel tax revenue in the first quarter of 2025 reached ₴565.9M, 43% higher than the same period last year, according to the State Agency for Tourism Development. Meanwhile, positive trends – an 11% increase – were also seen in tour operator activity: In the first half of the year, they paid ₴98.3M in taxes, up from ₴88.7M last year.

At the 2025 Spring Meetings in Washington, the IMF provided Ukrainian government officials with various recommendations on addressing the state budget for 2026. It is noted that representatives from Ukraine and the IMF discussed tax increases, particularly regarding VAT rates and transitioning to a progressive personal income tax scale, which entails higher tax rates for individuals with high incomes. The “luxury tax” was also briefly mentioned. However, much of the discussion was focused on the shadow economy. The IMF is

According to Finance Minister Serhiy Marchenko, this figure was made possible by a better-than-expected electricity supply during the winter, which enabled businesses to operate more consistently and pay more taxes. “This enables us to consider the gradual reduction of our dependence on international aid. However, this process will be slow, as we need to balance the 2026 budget in line with the commitments made with the IMF,” Marchenko emphasized. As well, a reduction in military spending is not anticipated, despite

The extent of shadow activity in Ukrainian retail trade has reached a critical level: According to various estimates, up to 45% of all retail transactions may take place outside of Ukraine’s tax system. Experts state that Ukraine’s total volume of retail trade exceeds ₴2T annually. Meanwhile, the share of the 10 largest chains – including ATB, Silpo, Aurora, Fora, Rozetka, Novus, Metro, Rush (EVA), Omega (Varus), and Foodcom (Velika Kyshenya) – amounts to only ₴529B ($13B), which is slightly more

Analysts note that by the end of 2024, state and state-guaranteed debt amounted to ₴6.98T, or $166.1B. Over the year, this amount increased by more than 26% in hryvnia and by 14% in foreign currency terms. The ratio of state debt to GDP stands at 87.9%. Even more, experts predict that this year the situation may worsen, with state debt expected to exceed 100% of GDP as Ukraine continues to actively seek external financing to cover its current $38B budget

With the move, the state expects to receive ₴10B annually from Glovo, Bolt, Uklon, and others. In April 2025, the Ukrainian government must submit to parliament a bill on the taxation of digital platforms, such as Bolt, Uklon, or Glovo. This is one of the government’s commitments on Ukraine’s path to the EU, and one of the IMF’s beacons. The parliament’s finance committee reported that digital platforms employ several hundred thousand individuals in more than two dozen companies, so taxation

General fund revenues of regional budgets (excluding inter-budgetary transfers) in 2024 amounted to UAH 451B, which is 2.1%, or UAH 9.1B, more than in 2023. It is noted that since October 2023, local budgets have been deprived of revenues from the so-called military personal income tax. Excluding these revenues, local budget revenues from all other sources increased by 24.1%, or UAH 87.6B, in 2024. In incomparable indicators, revenues increased in all regions except for the Luhansk region. The highest rates

President Volodymyr Zelenskyy signed a law on tax increases that are necessary to finance defense spending. The increases came into force on December 1. The total tax increases in 2024 will be about ₴8B ($195M). In particular, taxes for citizens and individual entrepreneurs will increase. Next year, the main revenue source will be income from individual taxpayers, and banks will pay an increased tax burden. The law provides for an increase in the military levy on all income from citizens

Since the beginning of the full-scale war in Ukraine, an enterprise relocation program has existed. For the regions where these companies have moved, this means additional jobs and tax revenue. According to analysis, in the Zakarpattia region in 2021, 61.5% of the budget consisted of state subsidies, tax revenue comprising 29.1%. In 2022, the situation changed: subsidies decreased to 37.5% and tax revenue increased to 54.2%. Currently, these indicators reach 47.4% and 43.1%, respectively. In the Lviv region’s 2021 budget,

The deputy head of the IMF mission in Ukraine, Trevor Lessard, noted that the introduction of a 50% tax on bank profits for the second year in a row contradicts the nature of taxing excess profits, undermines trust in politicians, and is not an effective solution. “If you introduce a tax on extraordinary income more than once, then people will start to react, and you will start to lose confidence in the policy,” he said. According to him, banks may

IMF experts unveiled their proposals for reducing Ukraine’s national debt as part of their recommendations. The IMF’s Deputy Director of the Fiscal Affairs department, , noted that their recommendations include a two-fold increase in efforts to mobilize revenue to the state budget from domestic sources, completing the restructuring of commercial debt within the terms determined by the commitments, and accelerating the implementation of the National Revenue Strategy. She pointed out that the strategy is aimed at more effective revenue mobilization

said the head of the Parliamentary Finance Committee, Danylo Hetmantsev. However, he specified that after measures taken by the state, this amount will decrease to ₴420-430B ($10B). At the same time, there are industries, such as trade, where the shadow economy rate is 60-70%. Talking about the government’s achievements in the fight against the shadow economy, the government official mentioned that the bill supported last week establishes a guaranteed tax liability for distilleries based on their capacity and not on

Because of the retrospective increase in taxes from October 1, businesses are transferring their workers to the shadow employment sector. This will increase the shadow economy by 10 percentage points, which currently sits at 35%, Andriy Dligach, the founder of the Advanter Group, said. Currently, more than a third of salaries in Ukraine are unofficially provided. Given the tax changes, it has become profitable for most companies to reduce staff or return to the practice of “salaries in envelopes.” Dligach

On October 10, the Verkhovna Rada adopted draft law No. 11416-d, enacting a historic tax increase. The document provides for: An increase in the military levy from 1.5% to 5%, except for the military – their rate will remain unchanged The introduction of a military tax for individual entrepreneurs A 50% income tax rate for banks A 25% income tax rate for financial companies Rent increases for crushed stone, sand, and kaolin miners An increase in the minimum tax liability

All the tax revenue in the state budget is directed to the security and defense sector, but even that is not enough. The Ministry of Finance noted that the balance is covered through other sources, including non-tax revenues and domestic borrowing. The ministry added that, despite rising costs, tax rates have not changed since the start of the full-scale invasion, and in 2022 support benefits were even introduced. In 2023 tax revenues amounted to 32.4% of GDP, which is lower

The IMF Executive Board plans to consider the issue of approving the results of the EFF program’s fifth revision and the allocation of the next tranche to Ukraine within a few weeks, IMF spokeswoman Julia Kozack said at a briefing. In the event of a favorable decision, Ukraine will receive up to $1.1B. At the same time, the IMF believes that Ukraine needs to mobilize domestic revenues, including introducing financial restrictions and increasing tax revenues. This should help “create space

Members of the European Business Association hope that instead of drafting laws to raise taxes for businesses, the government can find other solutions to fund the budget, as the entire burden of the proposed decision will fall on honest companies. At the same time, the EBA notes that in order to increase revenue for the state budget, combating Ukraine’s shadow economy is crucial. This includes decisions related to customs reform and effective work by law enforcement agencies, particularly the Economic

According to Finance Minister Serhiy Marchenko, Ukraine and the International Monetary Fund (IMF) estimate the country’s additional financial need for 2025 from Western partners at between $12B and $15B. He recalled that during the preparation of the current program with the IMF, one of the key parameters predicted that the active phase of the war would last until the middle of 2024. However, this prediction did not come to pass, and the war will continue into 2025. “We are constantly

According to Minister of Finance Serhii Marchenko, this strictly depends on the how the parliament plans to secure an additional ₴120B in revenue by the end of 2024. The Ministry of Finance has proposed an increase in the military levy for this purpose, but there are calls in the parliament to increase the value-added tax. “We are always ready to look for compromise solutions,” Marchenko said. He added, “I will say honestly: the situation is critical.” The Cabinet of Ministers’