Ukraine to tax 2023 banking profits at 50%

Tax on excess profits of banks increased to 50%
Tax on excess profits of banks increased to 50%

Exorbitant profits Ukrainian commercial banks booked in 2023 will be taxed at 50%, while the tax rate for subsequent years will be set at 25%, Ukraine's Parliamentary Finance Committee chairman Danylo Hetmantsev said in a Telegram post on Nov. 16.

The corresponding bill has been amended before its second reading, raising the one-time windfall tax rate to 50%, according to the chairman.

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“A 50% tax on excess profits made by banks in 2023 will be implemented; starting from 2024, the base tax rate for bank profits will be set at 25%,” Hetmantsev wrote.

He added that the amendments were made with input from International Monetary Fund (IMF) experts.

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“I'm sincerely grateful to the National Bank of Ukraine, the Ministry of Finance, and my fellow colleagues for their constructive approach and fruitful discussion,” Hetmantsev adds.

“Once adopted, this bill will ensure additional revenue for the budget to cover military expenses.”

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Additionally, he informed that a crucial amendment had been included to extend the VAT exemption on the import of drones, thermal imagers, radios, and anti-drone rifles for another year.

Ukrainian commercial banks reported a net profit of UAH 109.9 billion ($3 billion) in the first nine months of 2023 — a dramatic increase compared to UAH 7.4 billion during the same period of 2022.

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Read the original article on The New Voice of Ukraine