Ukraine's parliament backs 50% bank profit tax for 2027
Ukraine's Verkhovna Rada supported a bill in first reading extending the 50% tax on bank profits through 2027 and restricting banks' ability to offset current taxable income with losses from previous periods. The proposal must pass a second reading before becoming law.
Key points
- Ukraine's parliament backed bill No. 15262 in first reading with 265 votes.
- The bill extends the 50% bank profit tax through 2027.
- Banks may not reduce their pre-tax financial result by losses from previous periods through 2027.
- Banks may use accumulated losses for tax purposes again from 2028.
- The parliamentary finance committee estimates about 50 billion hryvnias in additional budget revenue in 2027.
- Danilo Getmantsev says the measure will generate 38 billion hryvnias in additional revenue.
- The bill is scheduled for a second reading.
Why it matters
The bill could generate substantial additional revenue for Ukraine's budget in 2027, a year of continued wartime funding needs. It would also keep in place restrictions preventing banks from reducing their current taxable income using losses from previous periods, reflecting continued parliamentary scrutiny of banks' unusually high profits during the full-scale war.
What happened
The Verkhovna Rada, Ukraine's parliament, supported bill No. 15262 in first reading with 265 votes. The bill, prepared by lawmakers led by finance committee chair Danilo Getmantsev, would keep the bank profit tax at 50% in 2027 and bar banks from offsetting current taxable income with losses from previous periods. They would regain the ability to use accumulated losses for tax purposes from 2028. The parliamentary committee recommended adopting the bill as a basis and in full, but it still needs to pass a second reading.
How Ukrainian sources describe it
Ukrainian reporting focuses on the parliamentary procedure, the restrictions on banks' use of past losses and the additional revenue expected for the state budget. The initiative also reflects concerns that banks earned exceptional profits largely from government securities and National Bank of Ukraine deposit certificates during the war, raising the question of how much they should contribute to military needs.
Where reporting differs
Estimates of the additional budget revenue differ. The parliamentary finance committee estimates about 50 billion hryvnias in 2027, while Danilo Getmantsev says the measure will bring in 38 billion hryvnias.
Background
Banks were taxed at 50% on profits for 2023 and 2024, returned to a 25% rate in 2025 and faced 50% again in 2026. Earlier increases generated additional budget revenue, but the National Bank of Ukraine and the Ministry of Finance raised concerns about their effect on government bond volumes. In July 2026, the IMF recommended ending the 50% rate after 2027 and replacing it with permanent revenue sources. The central bank reported in August 2026 that banks' net profit had fallen by one-third because of the higher tax.