Property destroyed by shelling: how to write off products and fixed assets

Press service of the State Tax Service of Ukraine, published 14 August 2026 at 15:30 Chapter: News

Companies property of which was damaged or destroyed as a result of enemy shelling can reduce the income taxation object. Writing off rules depend on the property type and volume of annual income of the enterprise.

Destroyed products and inventories

Tax Code does not provide for separate tax differences for writing off destroyed products or inventories. This means that they are written off as expenses according to accounting rules. Accordingly, financial result before taxation is reduced, and therefore the income taxation object.

Destroyed fixed assets (equipment, buildings, transport)

Here rules depend on the payer’s annual income:

Income not exceeding 40 million UAH/year: cost of destroyed assets is written off as expenses according to accounting rules. They are taken into account in the process of determining financial result before taxation and, accordingly, reduce the income taxation object.

Income over 40 million UAH/year (payers who apply differences): taxation object is reduced by the residual value of destroyed object, determined according to the tax accounting rules.

In this case, the write-off of destroyed products, inventories and fixed assets requires proper documentary confirmation. Enterprise must conduct inventory and collect supporting documents that record such destruction.

This may be an act of the State Emergency Service of Ukraine on fire or destruction, certificate from the Unified Register of the Pre-trial Investigations about the fact of shelling, conclusions of the Chamber of Commerce and Industry and other documents that certify the fact and reasons for property destruction.