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The American Chamber of Commerce in Ukraine (AmCham) called on Ukrainian authorities to strengthen their fight against Ukraine’s shadow economy before increasing the tax burden on honest taxpayers. AmCham’s biggest concern in the proposed tax changes is the 1% tax to be applied to corporate revenues. “Such a tax should not be introduced, as it is a completely new sales tax alongside the existing VAT regime,” the AmCham said. At the same time, the chamber understands the urgent need to

Ukraine’s government approved changes to the state budget that include a proposed spending increase of ₴500.3B, of which ₴495.3B would be directed to the security sector and defense. The head of the parliament’s budget committee, Roksolana Pidlasa, specified that the funds would be directed to military salaries and equipment purchase. It is also proposed to reduce the costs of servicing the state debt by ₴61.8B. Additional expenses are planned to be covered by the state budget’s revenue increase of ₴214.5B,

According to the head of the Budget Committee, Roksolana Pidlasa, to finance the necessary expenses, the state budget for 2024 lacks about ₴400-500B ($10-12B). The question of funding the state budget of Ukraine for 2025 and the possibility of attracting $50B from Russian assets remains open. “Ukraine should have permission to buy weapons with this money, and part of this money should be directed to the budget,” Pidlasa added. According to the Tax Service, companies in financial and insurance activities

Chairman of the Verkhovna Rada Committee on Finance Danylo Hetmantsev said that the Cabinet of Ministers is preparing proposals to raise certain taxes. This is because the Ministry of Defense needs an additional $5-10B in financing and it is difficult to restructure its external debt. However, the government has not submitted anything to the parliament, so it is not known what the new rates will be. At the same time, the parliamentarian emphasized that the Cabinet of Ministers will consider

In May 2024, the general fund of the state budget received ₴151.8B, which is less than in February, March, and April, the Ministry of Finance notes. According to the results from the five completed months of the year, the state budget’s general and special funds received ₴1.075T in taxes, fees, and other payments. At the same time, cash expenditures for this period amounted to ₴1.545T. Actual state borrowing to finance the general fund of the state budget for January-May amounts

A schedule of annual rate increases until 2028 has been established for all excise goods. In particular, the excise tax on tobacco products will be equated to the euro, the tax rate will gradually increase to €90 for 1,000 cigarettes. As well, the excise tax on gasoline will rise from €215.5 per 1,000 liters to €359; on diesel fuel, it will rise from €139.5 to €330; and on liquefied gas from €52 to €70. It is also expected that excise

The receipt of taxes, fees, and mandatory payments to the general fund of the state budget of Ukraine in February amounted to ₴184.8B, 65.4% more than in January, the Ministry of Finance reported. Revenues from the tax service increased by 78.4% to ₴107.4B, while income from customs decreased by 15.9% to ₴39.8B. Corporate income tax increased in February to ₴61B, rent income from various assets increased to ₴3.5B. At the same time, ₴31B came in the form of grants from

In January 2024, Ukrainian banks produced ₴16.7B in net profit, ₴2.068B or 14% more than in January 2023. Net profit increased despite the increase in the tax rate: In January 2023, banks paid 18% tax, but beginning January 1, the tax rate increased to 25%. Banks increased their tax contributions from ₴2.275B to ₴3.698B but still received higher net profits. This happened because revenues grew faster (+9%) than the banks’ expenses (+6%). Interest income, which is ₴68.8% of all income,

In 2023, Ukrainian banks produced almost ₴160B in pre-tax profit, 100% more than before the start of the full-scale invasion. Banks will have to pay a tax of half their total profit – more than ₴73B. At the same time, the profit is still 12% higher than before the start of the full-scale invasion. At that time, 71 banks earned a profit of ₴77.53B. As well, 88% of the total profit – ₴75.94B – was accounted for by 10 banks,

Tax revenues in Ukraine are now 25-30% higher than forecasted in the state budget, primarily due to the successful functioning of the export corridor created by Ukraine in the Black Sea, Minister of Infrastructure Oleksandr Kubrakov said at the Munich Security Conference. According to him, there was an increase in the volume of goods that Ukrainian railways delivered to seaports. He emphasized that it is necessary to develop and increase the capacity of existing export routes along with the opening

In 2023, solvent Ukrainian banks earned ₴86.5B in net profit. “This is almost four times higher than the figure for 2022 and 12% higher than the results of 2021, before the full-scale invasion,” the NBU comments. The regulator noted that the driving force behind the sector’s income growth remains the increase in interest income from highly liquid assets and lending. “The main factor behind the significant difference in profitability, if compared with the previous year, was significantly smaller deductions from

From January 1 to February 8, budget revenues increased by 26.9% compared to last year, the NBU reported. Without international financial aid, they increased by 60% due to a 70% increase in tax revenues. Revenue came from income tax (+60%), VAT on goods, works, and services produced in Ukraine (+410%), and the revenues from budget institutions, which increased by 23.5%. State budget expenditures for the same period increased by 12%, social security increased by 5.7%, and capital expenditures increased by

The Cabinet of Ministers reported that the basic norm for deducting the share of profit directed to paying dividends for enterprises whose charter capital includes state corporate rights should be 80% of the results of economic activity in 2023. This also applies to economic enterprises that are majority-owned by enterprises with a 100% state ownership share, mainly subsidiaries. The government also established the following standard deductions: Naftogaz of Ukraine – 95%; Oschadbank and Ukrainian Financial Housing Company – 30%; Ukrnafta

Tax and interest deductions from the economy for 2022-2023 in Ukraine doubled. For example, tax revenues to the consolidated budget have increased by 110% over the past two years, thanks mainly to revenue from the military’s personal income tax, and income from the interest charged by banks has increased by 90% during the ten months of 2023, writes the former chairman of the Council of the National Bank Bohdan Danylyshyn. As a result, a catastrophic situation arose with the multiplication

According to Ukraine’s Tax Service, such enterprises paid 18% of the total tax to the Consolidated Budget of Ukraine. Also, significant tax contributions were provided by: Wholesale and retail trade; repair of motor vehicles – 16.7% Public administration and defense; mandatory social insurance – 14% Extractive industry and quarry development – 9.4% The largest increase in payment for 10 months of 2023 compared to 10 months of 2022 occurred in the following industries: Processing industry – 40% growth, or ₴58.5B

The Ministry of Finance will initiate changes to the draft law that was passed in the first reading regarding the taxation of excess bank profits for additional revenues for the state budget next year. It is noted that the already agreed upon tax rate for “surplus profits of banks,” adopted by the Ukrainian Parliament in the first reading, may undergo drastic changes. So, instead of paying 36% of the 2024-2025 profits in tax, banks would be charged a lower tax

As the head of the IMF mission, Gavin Gray, noted, this should be considered because the need to finance social expenditures will increase after the war’s end. “That’s why the authorities need to focus on strengthening the capacity to collect revenues – both tax and customs,” added Gray. He noted that by the end of this year, Ukrainian authorities plan to launch the National Income Strategy. At the same time, the IMF representative reminded observers that the IMF developed a

The regulator proposes to increase the bank profit tax rate from 18% to 38% for 2023-2024, NBU Chairman Andriy Pyshnyi said. According to him, this tax structure will have a limited impact on macro-financial stability and, at the same time, will support Ukraine’s defense capability. The head of the NBU, referring to the monitoring of the financial condition and the results of the assessment of the stability of banks, believes that financial institutions are quite capable of making additional payments

Through the first seven months of the year, the industry paid 17.1% of taxes and fees collected from enterprises across all sectors, the Tax Service reported. Also, processing companies showed the highest increase in tax deductions, by 50% or UAH 40.3B, in January-July 2022. In second place in terms of the share of tax deductions to the budget is wholesale and retail trade; repair of motor vehicles and motorcycles with 16.5%. Then there is public administration and defense, mandatory social

In the last ten years, the state budget has not received at least UAH 3B in taxes from crypto exchange activities, whose operations have not yet been regulated in Ukraine, said the Economic Security Bureau of Ukraine (ESBU). According to bureau analysts, the total volume of trades performed with these exchanges, for only three virtual assets (BTC, ETH, USDT), during the period from 2013 to 2023 is more than $55B. Transactions are accompanied by a trading fee, which each exchange