The Verkhovna Rada extended the 50% tax on bank profits until the end of 2027

The Verkhovna Rada of Ukraine adopted in the second reading and as a whole a bill that provides for the extension of the increased tax rate on bank profits in the amount of 50% for 2027. The corresponding decision was supported by 303 people’s deputies.

What the adopted bill provides for

The Parliament supported amendments to the Tax Code of Ukraine regarding the features of taxation of banking institutions’ profits.

The document provides for two key norms:

Extension of the tax rate on bank profits at the level of 50% during 2027.

A ban on reducing the financial result before taxation by the amount of losses received in previous tax periods.

Thus, banks will continue to operate under conditions of increased taxation of profits for another year.

Why banks will pay increased tax

The increased tax rate on bank profits is already applied in 2026.

The Verkhovna Rada adopted a corresponding decision at the end of 2025, setting a rate of 50% for banking institutions.

Subsequently, the parliament initiated the extension of the special taxation regime for 2027.

In particular, the intention to submit a corresponding bill was previously reported by the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev.

What does the parliament’s decision mean

The extension of the increased rate implies the preservation of an additional tax burden on the profits of the banking sector.

At the same time, the prohibition on taking into account losses from previous years when determining the object of taxation limits the ability of banks to reduce current tax liabilities at the expense of such losses.

The adopted document must undergo further procedures stipulated by law, including signing by the president and official publication.