Ukraine has approved the extension of the increased corporate income tax rate for banks in 2027. The Verkhovna Rada adopted the relevant bill (No. 15262). Parliament reported this on November 11, UNN writes.
The bill was supported by 303 people's deputies.
What is envisaged
"The document provides for extending the application of the increased corporate income tax rate of 50% for banks for the next year. At the same time, it will prohibit reducing the pre-tax financial result by the amount of losses from previous periods," parliament reported.
This is expected to ensure additional revenues for the state budget, which will be directed toward financing the security and defense sector under martial law.
How much additional money is planned to be collected from banks
According to estimates by the Ministry of Finance, extending the increased taxation of banks could generate more than UAH 50 billion in additional revenues for the consolidated budget based on the results of the 2027 tax periods. The funds will be received over two budget years.
In particular, in 2027 the Finance Ministry forecasts additional revenues of UAH 37.8 billion, of which UAH 34 billion is expected to go to the state budget and another UAH 3.8 billion to local budgets. In 2028, an additional UAH 12.6 billion is expected, including UAH 11.4 billion for the state budget and UAH 1.2 billion for local budgets.
In addition, the materials accompanying the draft State Budget for 2027 provide for UAH 38.5 billion in revenues from the corporate income tax on banks for the first three quarters of next year, provided that the 50% rate is extended.
At the same time, the parliamentary Budget Committee noted that the bill had not been accompanied by the financial and economic justification with the relevant calculations required by the Budget Code and the Rules of Procedure of the Verkhovna Rada.
Why the authorities insist on increased taxation
One of the main arguments of supporters of extending the increased rate remains the profitability of Ukraine's banking sector. Parliamentary Finance Committee Chairman Danylo Hetmantsev previously explained the need for such a decision by the specific ways banks earn profits during the war.
According to him, a significant portion of banks' income also comes from transactions involving certificates of deposit issued by the National Bank and domestic government bonds. These instruments enable banks to earn income at a relatively low level of risk compared with traditional lending. Hetmantsev emphasized that the state, which ensures the functioning of the relevant financial mechanisms, has the right to expect additional revenues from the banking sector amid substantial defense expenditures.
"The state is taking away from banks part of this profit, which will go toward financing the army," Hetmantsev said in June 2026.
The lawmaker also drew attention to the high return on banking capital in Ukraine compared with European indicators.
NBU and banking sector warn of risks
Despite the expected budgetary effect, extending the increased taxation has drawn objections from representatives of the financial sector.
The National Bank of Ukraine has repeatedly previously drawn attention to the risks associated with increasing the corporate income tax on banks to 50%. In particular, in its December 2025 Financial Stability Report, the regulator stated that the increased tax burden limits banks' ability to expand their operations and negatively affects the investment attractiveness of the financial sector.
The NBU identified a possible complication of the privatization of state-owned banks as a separate risk. In the regulator's view, excessive withdrawal of profits could also limit financial institutions' ability to accumulate capital.
In June 2026, several professional and business associations immediately came out against Draft Law No. 15262. The Association of Ukrainian Banks, the National Association of Banks of Ukraine, the Confederation of Builders of Ukraine, the Association of Ukrainian Veteran Entrepreneurs, the League of Insurance Organizations of Ukraine, and the Ukrainian Chamber of Commerce and Industry appealed to parliament not to support the proposed changes.
Representatives of these organizations warned that the prolonged application of the increased rate could negatively affect lending to businesses, investment activity, and the development of veteran-owned businesses. The Association of Ukrainian Banks also cited estimates according to which UAH 20–25 billion in capital could potentially provide UAH 200–300 billion in credit resources for the economy.
How the decision could affect businesses and depositors
For citizens directly, the draft law does not provide for the introduction of new taxes on bank deposits, card accounts, or credit transactions. The increased rate applies specifically to the profits of banking institutions, not to their customers’ funds.
At the same time, banking market experts point to possible indirect consequences.
Profit is one of the sources for replenishing banks’ capital. The ability of financial institutions to expand lending while complying with established regulatory requirements depends, among other things, on the amount of this capital. Accordingly, a reduction in the profit remaining at banks’ disposal could potentially limit their ability to finance new projects. This could primarily affect lending to small and medium-sized businesses, the reconstruction of damaged infrastructure, housing construction, and investment in energy resilience.
At the same time, a tax increase does not automatically mean that loans will become more expensive or that all lending programs will be reduced. The actual consequences will depend on the financial condition of individual banks, demand for loans, the cost of raising funds, credit risks, and the policy of the National Bank.
How bank taxation has changed in Ukraine
Increased taxation of the banking sector has been applied in Ukraine for several years. In 2023, the Verkhovna Rada established a 50% corporate income tax rate for banks for the first time. The decision was explained by the need to obtain additional budget resources amid the war and the high profitability of financial institutions.
In 2024, the same rate was applied again. In 2025, banks paid corporate income tax at a rate of 25%, but at the end of the year parliament returned to the issue of increasing the tax burden.
On December 3, 2025, the Verkhovna Rada adopted a law providing for the application of a 50% rate throughout 2026.
A reminder
Somewhat earlier, NBU Governor Andriy Pyshnyi said that a third increase in bank taxation would have serious negative consequences. He considers the initiative dangerous because it undermines trust in the tax system.