Banks were charged record UAH 73.5 billion in income taxes last year

This was reported by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, in a Telegram message.

"The accrued income tax in 2023 amounted to UAH 73.5 billion, which is 10 and 11.5 times more than a year and two years ago, respectively. It is also twice as much as in the previous 15 years," the statement said.

Hetmantsev emphasises that this amount of tax liabilities is due to the additional charge of income tax at an increased rate at the end of 2023.

At the same time, the banking system in 2023 received the largest net profit for all years at UAH 86.5 billion. This is four times and 12% more than in 2022 and 2021, respectively.

This profit growth was driven by an increase in net interest income, primarily from risk-free transactions with government securities (certificates of deposit, domestic government bonds), amid rising interest margins and moderate provisioning. At the same time, the banks retained a record net profit for the year, which supported their financial strength and capital adequacy.

As reported, in December 2023, in accordance with changes to the legislation, banks charged an additional annual amount of income tax based on the results of 2023 at a higher rate of 50%.

Photo: NBU