Businesses can pay less tax due to property destroyed by shelling: what you need to know
Kyiv • UNN
Ukrainian companies can take losses from shelling into account when taxing profits. The procedure depends on the type of property and the company's annual income.
Ukrainian companies whose property was damaged or destroyed as a result of Russian shelling may take the relevant losses into account when determining the taxable base for corporate income tax. UNN reports this with reference to the State Tax Service of Ukraine.
Details
The procedure depends on the type of lost property and the company's annual income. If the company's goods or inventories were destroyed as a result of hostilities, the Tax Code of Ukraine does not provide for separate tax differences for their write-off.
In this case, the value of the destroyed goods and inventories is written off as expenses in accordance with accounting rules. This reduces the company's financial result before taxation and, accordingly, the taxable base for corporate income tax.
A different procedure applies to destroyed fixed assets, including equipment, buildings, and vehicles. It depends on the company's annual income.
For enterprises with annual income of no more than UAH 40 million, the value of destroyed fixed assets is written off as expenses under accounting rules. Such expenses are taken into account when determining the financial result before taxation and reduce the taxable base for corporate income tax.
If the company's annual income exceeds UAH 40 million and it applies tax differences, the residual value of the destroyed asset, calculated in accordance with tax accounting rules, is taken into account when determining the taxable base.
Thus, the mechanism for tax accounting of losses from Russian shelling differs depending on whether it concerns goods and inventories or fixed assets; for the latter, the category of corporate income taxpayer is also relevant.
Reminder
The Cabinet of Ministers of Ukraine changed the procedure for confirming losses related to destroyed property and extended the deadline for submitting applications for compensation of insurance premiums. The war-risk insurance program began on January 1, 2026.