Lesya Karnaukh during the international conference: Ukraine’s experience in ensuring tax administration stability during the war is unique and valuable for many countries

Press service of the State Tax Service of Ukraine, published 17 April 2026 at 15:25 Chapter: News

Ukraine’s experience in ensuring tax administration stability during the war is unique and valuable in the context of modern global geopolitical challenges. This is experience that can be useful to many countries. This was stated by acting Head of the State Tax Service Lesya Karnaukh during the 26th international conference “U.S. and Europe: tax practice trends”, which took place in Rome. Event brought together leading tax experts, representatives of governments, international organizations, business and legal community.

It is one of the key platforms where the global tax policy agenda is shaped.  

“For Ukraine as a whole and the State Tax Service in particular, participation in such events is opportunity to be heard. Today we are working in extremely difficult conditions – daily attacks by the russian enemy, damaged infrastructure and logistical routes. Some of the infrastructure facilities of the State Tax Service are also damaged or destroyed. These are 81 facilities in 12 regions. But at the same time, it was extremely important for the State Tax Service to maintain stable revenues, change communication philosophy with the taxpayers and increase taxpayers’ trust in the Tax Service” – Lesya Karnaukh emphasized. 

In 2025, in the fourth year of a full-scale war:

1.25 trillion UAH – revenues administered by the State Tax Service,

+20.2 % growth compared to the previous year,

increase in administration of the State Tax Service +305 billion UAH (+19.5 %).

We have already moved:

- from mass control → to the risk-based model,

- from manual solutions → to automation,

- from closedness → to transparent algorithms.

This is in line with the international best practices:

- OECD approaches to compliance,

- IMF recommendations regarding effective administration,

- EU standards on transparency and digitalization.

Acting Head of the State Tax Service focused on the key aspects.

Transfer pricing

Every year, the State Tax Service analyzes controlled transactions worth 47 billion Euros, carried out by more than 2.5 thousand taxpayers. 

We clearly see how the global economy is changing. Ukrainian companies are entering international markets, integrating into global supply chains, becoming part of international groups. Our task is much broader than classic tax control.

We work to ensure that profits are taxed where economic value is created. So that profits are not only not taken out of Ukraine, but also returned to the national economy.

Digital Tax Service

Millions of users use the Tax Service’s online services. State Tax Service is already working on modernizing the taxpayer’s Electronic cabinet. It is developing mobile solutions, improving data, analytics processes and has introduced electronic auditing. 

Minimum human intervention, data-driven administration, integration with international data exchange systems, expansion of digital tax services for citizens in Diia – this is what we are working on, and this is what meets European requirements.

Moreover, to implement the risk-based approach in the transfer pricing, the Big Data TP analytical system has been developed and introduced. This is a comprehensive analysis of large data sets in a standardized format, which allows for timely detection of deviations in pricing and profitability levels. 

We develop IT solution ITARIS, which will complement Big Data TP, to form a single risk-oriented approach to analyzing international activities of the taxpayers, including controlled foreign companies, activities of non-resident representative offices, etc.

Integration into the global tax transparency system

This is a part of the BEPS Action Plan implementation. State Tax Service seeks to increase transparency in activities of the international groups of companies and prevent tax base erosion.

We have already implemented the Country-by-Country Reporting mechanism, we have international information exchange. State Tax Service receives the whole picture of the distribution of income, profits, taxes and economic presence of the international groups of companies by jurisdiction.

According to the analysis results, 728 international groups of companies with income of more than 750 million Euros were identified in Ukraine and this figure is increasing annually.

Movement towards the international standards

The main is that we have not stopped the reforms. We continue to implement key international standards in the taxation sphere: BEPS, ATAD, GAAR, Pillar Two. These are systemic changes, the main goal of which is transparency, fairness and taxation where value is created.

State Tax Service harmonizes legislation with the OECD and EU approaches, introduces tools to combat base erosion and creates predictable environment for business.

“Today, Ukraine is holding on thanks to the strength of our militaries, support of the international partners, and thanks to every taxpayer. Participation of the State Tax Service in such event is opportunity to integrate Ukrainian experience of transforming tax system into the global context, as well as adopt the best international practices for further development” – Lesya Karnaukh underscored.