Businesses in Ukraine face numerous daily challenges, including: the country’s security situation; a shortage of qualified professionals; declining consumer purchasing power; limited access to financing and working capital; regulatory uncertainty and administrative barriers; and employees’ psychological well-being. Another major challenge for Ukrainian and international businesses operating here continues to be the burden of taxation.
Although a study by the European Business Association indicates that the majority of companies operating in Ukraine remain cautiously optimistic about 2026, and government officials consistently assert that there are no plans to increase tax rates for either business or individuals in 2026 (albeit with the caveat that the legislature will refrain from raising taxes «as much as possible»), all signs suggest that next year may be equally challenging for businesses, especially in terms of tax burden.
Increase of Corporate Profit Tax Rate for Banks
Last week, the Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended passage of Draft Law No. 14097 in second reading. Among other measures, it proposes raising the standard corporate profit tax rate for banks to 50% in 2026 (up from 25% in 2025), while simultaneously prohibiting the offsetting of profits by carrying forward prior-year losses. This initiative is projected to increase receipts from the corporate profit tax in the general fund of the state budget for 2026 by approximately UAH 30 billion.
Rationale:
- The state anticipates the need to mobilize additional financial resources for next year.
- Ukrainian banks have maintained relatively high profitability—despite wartime and economic risks—primarily through transactions involving government securities, which offer banks a low-risk yield margin.
Risks:
- While the measure could boost budget revenues, it may negatively impact banks’ capacity to lend to businesses.
- Prohibiting loss carryforwards could reduce banks’ capital.
- Frequent changes in tax policy—including retrospective bank taxation implemented in 2023–2024—create uncertainty for potential investors and could complicate the privatization of state-owned banks.
- According to banking sector representatives and the head of Ukraine’s National Bank, imposing disproportionate tax burdens on banks risks pushing one of the most transparent sectors of the economy into the informal economy.
Higher Excise Duties on Fuel — Alignment with EU Rates
Law No. 3878-IX, dated 18 July 2024, amends the Tax Code to implement EU-aligned excise duties on fuels per Directive 2003/96/EC, as part of the Association Agreement. This aligns with the National Revenue Strategy through 2030 and the fiscal priorities set out in the 2026–2028 Budget Declaration.
Effective 1 January 2026, excise rates per 1,000 liters will be:
- Gasoline: €300.8 (up from €271.7 in 2025)
- Diesel: €253.8 (up from €215.7 in 2025)
- Liquefied petroleum gas: €198 (up from €173 in 2025)
While alignment with EU excise structures is legally necessary, higher fuel excise could raise production and service costs—adding to pressures already caused by increased operational expenses stemming from attacks on energy infrastructure, disruptions in power supply, and costs associated with ensuring uninterrupted production.
New Thresholds and Rates for 2026
The 2026 State Budget Law introduces increases effective 1 January 2026 in:
- Minimum wage: UAH 8,647 (up from UAH 8,000 in 2025);
- Subistence minimum for working-age adults: UAH 3,328 (up from UAH 3,028 in 2025).
These increases will affect thresholds for small business taxpayers under simplified tax regimes, as well as maximum unified tax rates.
Income thresholds for simplified tax regime (annual):
- Group I: up to UAH 1,444,049 (versus UAH 1,336,000 in 2025)
- Group II: up to UAH 7,211,598 (versus UAH 6,672,000 in 2025)
- Group III: up to UAH 10,091,049 (versus UAH 9,336,000 in 2025)
Unified tax rates:
- Group I: UAH 332.80 per month (up from UAH 302.80 in 2025)
- Group II: UAH 1,729.40 per month (up from UAH 1,600.00 in 2025)
- Group III: 3% of income (if VAT-registered) or 5% of income (if non-VAT) — no change from 2025.
Single Social Contribution (SSC) and Military Levy
With rising minimum wages in 2026, the minimum SSC base increases to UAH 1,902.34 per month (from UAH 1,760.00 in 2025). The maximum SSC assessment base remains at 20 times the minimum wage—UAH 172,940 (up from UAH 160,000 in 2025). For military, police, and other uniformed personnel, the SSC cap is 15 minimum wages—UAH 129,705 (versus UAH 120,000 in 2025).
From 2025, freelancers and simplified taxpayers in Groups I, II, and IV are required to pay a military levy of 10% of the statutory minimum wage as of 1 January each tax year. Accordingly, in 2026, these taxpayers will pay UAH 864.70 per month.
Reporting Requirements
Law No. 4536-IX of 16 July 2025 amends the Tax Code to implement provisions of the Law «On Integrated Prevention and Control of Industrial Pollution» and make other tax improvements. From 1 January 2026, new reporting deadlines apply to the taxable income paid to individuals and amounts withheld, as well as to the unified social contribution. Quarterly reporting will be required for military levy and SSC by freelancers and independent professionals with employees.
This transition to quarterly reporting will demand heightened attention to filing deadlines, accuracy of calculations, and systematic bookkeeping, supported by internal procedures and timely updates to payroll data. This will help ensure continuous compliance and improve predictability of tax liabilities throughout the year.
Other Anticipated Taxes
The draft 2026 Budget Law anticipates additional revenue from proposed changes to tax legislation, including:
- Draft Law No. 14025 (dated 9 September 2025), concerning an international automatic exchange of information from digital platforms (e.g., OLX) and imposing a related tax;
- Draft Law No. 9032-1 (dated 6 March 2023), introducing an excise tax on flavored or sweetened waters, including mineral water («soda tax»).
Although not yet enacted, the state is already anticipating these revenue streams. Producers of sweetened beverages and operators of digital platforms (such as OLX, Prom, Rozetka, etc.) should begin adapting their business models to this potential tax burden.
Conclusion
Tax changes anticipated for 2026 may not fundamentally alter the business environment in Ukraine, but they do combine the state’s fiscal requirements with the need for gradual harmonization with EU law. These changes could impose further pressure on companies navigating already difficult economic and security conditions. Nevertheless, recent years have shown that Ukrainian and international businesses operating in Ukraine can adapt, find effective solutions, and continue to grow—often despite, rather than because of, state and regulatory measures.