Bill doubling banks' profit tax rate for 2024-2025 passes first reading in Ukrainian parliament

MOSCOW. Oct 20 (Interfax) - The Ukrainian Verkhovna Rada adopted the finalized bill temporarily doubling the rate of the tax on banks' profit to 36% for 2024-2025 in the first reading on Friday.

The bill places a ban for this period on crediting profits against previous periods' losses, Ukrainian media said, citing Rada committee first deputy head Yaroslav Zheleznyak.

"The adoption of this legislation is projected at +9.9 billion hryvni in the 2024 budget," Zheleznyak said.

The net profit of 64 operating Ukrainian banks stood at 95.1 billion hryvni in January-August 2023, and the profit tax amounted to 17 billion hryvni, including PrivatBank's net profit of 39.2 billion hryvni and profit tax payments at 9 billion hryvni, according to data from the National Bank of Ukraine. Four other state-owned banks posted net profit of 20.6 billion hryvni and paid 400 million hryvni in profit tax.