Parliament backed a 50% tax on banks’ profits in 2027: how much the budget will receive and what risks the economy faces

The Verkhovna Rada of Ukraine adopted as a basis a bill providing for the extension into 2027 of the increased 50% corporate income tax rate for banks. This was reported by UNN , citing official information from the Ukrainian parliament.

A total of 265 Members of Parliament voted in favor of the decision. The additional budget revenues are planned to be allocated to security and defense needs. At the same time, representatives of the banking sector warn of possible negative consequences for lending to the economy

What the bill provides for

This concerns Bill No. 15262, "On Amendments to the Tax Code of Ukraine Regarding the Specifics of Taxation of Banks with Corporate Income Tax," registered on May 20, 2026.

The document provides for extending into the following year the increased 50% corporate income tax rate for banking institutions. Thus, if the law is finally adopted, banks will continue to pay tax at the rate already applied in 2026. In addition, the bill prohibits banks from reducing their pre-tax financial result by the amount of losses accumulated in previous tax periods.

At the same time, the possibility of taking such losses into account is to be restored from January 1, 2028. This means that during 2027, banks will not be able to use losses from previous years to reduce taxable profit.

The stated purpose of the legislative initiative is to increase state budget revenues to finance the needs of the security and defense sector amid a full-scale war. The document was initiated by a group of Members of Parliament, including Danylo Hetmantsev, chair of the parliamentary Committee on Finance, Tax and Customs Policy.

On June 16, the relevant committee recommended that the Verkhovna Rada adopt the bill as a basis and as a whole, subject to the necessary technical and legal refinement.

How much additional money is planned to be raised from banks

According to estimates by the Ministry of Finance, extending the increased taxation of banks could provide more than UAH 50 billion in additional revenues to 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 Ministry of Finance 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 corporate income tax paid by banks for the first three quarters of the following year, provided the 50% rate is extended.

At the same time, the parliamentary Budget Committee noted that the bill was not 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 Chair Danylo Hetmantsev previously explained the need for such a decision by the specific features of how banks generate profits during wartime.

According to him, banking institutions also receive a significant portion of their income from transactions involving certificates of deposit issued by the National Bank and domestic government bonds. These instruments enable banks to earn income with a relatively low level of risk compared with conventional 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 significant 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 parliamentarian also drew attention to the high profitability of bank capital in Ukraine compared with European indicators.

The NBU and the banking sector warn of risks

Despite the expected budgetary effect, the continuation of increased taxation met with objections from representatives of the financial sector.

The National Bank of Ukraine had repeatedly 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 noted 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 the possible complication of privatizing state-owned banks as a separate risk. In the regulator’s view, excessive profit extraction may also limit financial institutions’ ability to accumulate capital.

In June 2026, several professional and business associations immediately came out against Draft Law No. 15262. Thus, 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, calling on it 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 lending 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 draw attention to possible indirect consequences.

Profit is one of the sources of banks’ capital replenishment. The ability of financial institutions to expand lending while complying with established prudential 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 concern lending to small and medium-sized businesses, the restoration of damaged infrastructure, residential 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 already. 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 budgetary 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.

Recall

Somewhat earlier, NBU Governor Andriy Pyshnyi stated 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.