This article provides a detailed overview of Ukraine’s corporate tax regime as it applies to resident companies in 2025, focusing on statutory rates, key distinctions for certain industries, and noteworthy surcharges. All figures are based on official data available for this year and presented in Ukrainian Hryvnia (UAH).
Overview of Corporate Income Tax in Ukraine
As of 2025, Ukraine applies a flat-rate corporate income tax for resident companies. The tax is assessed on corporate profits, with no progressive brackets or tiered rates. This approach ensures a straightforward calculation for most standard Ukrainian businesses.
| Assessment Basis | Type | Standard Rate (%) | Currency |
|---|---|---|---|
| Corporate profits | Flat | 18% | UAH |
The 18% tax rate applies broadly across the corporate sector unless specific rules or surcharges are triggered, as outlined below.
Surtaxes and Special Rates
Certain institutions and activities in Ukraine are subject to additional corporate tax rates or treatment. The table below summarizes the relevant categories and applicable rates as of 2025:
| Entity/Activity | Rate (%) | Applicable Condition/Period |
|---|---|---|
| Banks (profits) | 50% | Tax years 2023 and 2024 |
| Financial institutions (excluding insurance) | 25% | From 1 January 2025 |
| Life insurance/voluntary pension & medical insurance premiums (insurance companies only) | 0% | Always |
| Other insurance premiums (excluding reinsurance, insurance companies) | 3% | Always |
| Lottery organization | 28% | 2020 only |
| Lottery organization | 30% | From 1 January 2021 |
| Operating of gambling machines | 10% | Always |
| Bookmakers & other gambling (including casinos) | 18% | Always |
This special surcharge regime notably affects the financial and gaming sectors. For example:
- Banks faced a 50% profits tax for 2023 and 2024, but are not listed as subject to this rate in 2025, indicating a likely return to standard rules unless otherwise legislated.
- Financial institutions (non-insurance) are subject to a 25% rate starting 1 January 2025.
- Insurance companies benefit from a 0% tax on selected long-term and voluntary premiums, but pay 3% on other classes of premiums.
- Lottery and gambling activities are taxed at higher or differentiated rates, depending on the specific activity (30% for lottery organization, 10% for gambling machines, and 18% for bookmakers and casinos).
Key Features and Limitations
- No progressive brackets: Ukraine’s corporate tax is applied at a flat rate, with exceptions only for specific industries or activities as shown above.
- Assessment basis: Tax is calculated on net corporate profits in Ukrainian Hryvnia (UAH).
- No mandatory holding periods: The tax regime does not specify minimum or maximum holding periods for assets in the context of corporate taxation.
Summary Table – Ukraine Corporate Tax Regime (2025)
| Description | Rate (%) | Applies To | Currency |
|---|---|---|---|
| Standard corporate tax rate | 18% | All companies (unless listed below) | UAH |
| Financial institutions (except insurance) | 25% | Profits (from 1 January 2025) | UAH |
| Insurance companies – specific premiums | 0% / 3% | Life, voluntary medical, and pension (0%), other (3%) | UAH |
| Lottery organization | 30% | Profits (from 2021) | UAH |
| Gambling machines | 10% | Profits | UAH |
| Bookmakers, casinos, etc. | 18% | Profits | UAH |
Pro Tips for Navigating Ukraine’s Corporate Tax (2025)
- Clarify your industry status: Carefully determine whether your business is classified as a standard company, financial institution, or subject to special surcharges for gambling and lotteries, as misclassification can lead to significant compliance issues.
- Leverage exclusions for insurance: Insurance companies should identify which premiums are taxed at 0% to optimize tax liability and reporting obligations.
- Monitor regulatory changes: Legislation regarding corporate tax – especially regarding industries like banking and finance – can shift rapidly. Stay updated through Ukraine’s official authorities at mind.ua and tax.gov.ua.
- Document surcharges: If your company operates in multiple qualifying activities (e.g., insurance and lottery organization), maintain robust internal controls to separate taxable income streams accurately due to differing rates.
Additional Resources
Ukraine’s corporate tax system in 2025 is straightforward for most standard businesses but introduces complexity through surcharge regimes for the financial and gaming sectors. Key points to remember are the universal flat rate of 18%, differentiated rules for financial, insurance, and gambling industries, and the importance of monitoring sectoral changes. As with any jurisdiction, careful attention to classification and compliance is essential for smooth operation under the Ukrainian tax regime.