Tax regulations regarding transactions related to unlawful gain came into effect on January 1, 2026

Provisions of the Tax Code of Ukraine regarding detection and tax consequences of transactions related to provision of unlawful gain to official, including foreign states, is applied in Ukraine from January 1, 2026.

Changes were introduced in connection with adoption of the Law of Ukraine № 4112-ІХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine and certain Laws of Ukraine to take into account provisions of recommendations of Council of the Organization for Economic Cooperation and Development regarding tax measures to further combat bribery of foreign officials in international business transactions".

New rules apply from the first tax (reporting) period starting on January 1, 2026, namely:

- for income tax payers with a quarterly, semi-annual or annual reporting period – from the I quarter of 2026;

- for taxpayers with annual tax period – from the reporting year 2026.

What changes for the taxpayers?

Changes particularly provide for:

- a ban on the payer taking into account expenses for taxation purposes for transactions related to provision of unlawful gain to officials;

- possibility of self-adjustment of tax liabilities by the payer in case of detection of such transactions;

- provision by the controlling authority of notifications to the National Anti-Corruption Bureau of Ukraine about circumstances (facts) discovered during documentary audits that may indicate provision of unlawful gain to official of a foreign state, as well as informing the taxpayer about this;

- conduction of unscheduled documentary audits of the taxpayers who have been convicted by a court of providing unlawful gain, if such actions could lead to a reduction in the taxation object and/or underestimation of tax liabilities;

- increase in the financial result before taxation by the amount of expenses which, according to legislation, have been established to have been incurred for the purpose of providing unlawful gain.

For reference.

Regulations apply according to Paragraph 74-1 Subsection 10 Section XX "Transitional provisions" of the Tax Code of Ukraine and entered into force after:

- publication on official website of the National Anti-Corruption Bureau of Ukraine of a list of circumstances (facts) that may indicate transactions aimed at providing unlawful gain to official of a foreign state (Order of the National Anti-Corruption Bureau of Ukraine № 101 as of 01.07.2025);

- approval of procedure for information interaction between the State Tax Service and National Anti-Corruption Bureau of Ukraine regarding provision of information on identified circumstances (facts) that may indicate implementation of transactions aimed at providing unlawful gain to official of a foreign state (joint Order of the Ministry of Finance and National Anti-Corruption Bureau of Ukraine № 506/147 as of 03.10.2025, registered in the Ministry of Justice of Ukraine on 20.10.2025 under № 1520/44926).