TAX ALERT 19.03.2026 | Digest of Key Tax News

Taxation of property rental: new legislative initiatives are registered 

We have previously written about the draft law No. 15031 regarding changes to the taxation of income from letting property. 

As alternatives to this, the following have been registered with the Verkhovna Rada of Ukraine: 

• Draft Law No. 15031-1 dated March 02, 2026, “On Amendments to the Tax Code of Ukraine Regarding the Creation of Favourable Conditions for the Rental of Residential Property to Internally Displaced Persons”. 

In particular, it proposes reducing the personal income tax rate from 18% to 5% and the military levy from 5% to 1% on income from the letting of residential property (or parts thereof), as well as establishing an annual reporting period for taxpayers who are landlords. 

In addition, it is proposed to apply property tax relief to residential properties let to individuals who are not self-employed. 

• Draft Law No. 15031-2 dated March 04, 2026, “On Amendments to the Tax Code of Ukraine Regarding the De-shadowing of the Residential Rental Market and the Promotion of the Letting of Residential Property to Internally Displaced Persons and War Veterans”. 

This initiative provides for the exclusion from the scope of personal income tax of income derived from the letting of residential property (or parts thereof) to a tenant who has the status of an internally displaced person and/or a combatant, a person with a war-related disability, or a war veteran, provided that the relevant lease agreement is registered with the Pension Fund of Ukraine. 

In addition, it is proposed to introduce an annual reporting period for taxpayers who are landlords, as well as to set personal income tax rates on income from the letting of residential property (or parts thereof), which will be calculated based on the area of such property: up to 200 square metres – 0%; from 200 to 400 square metres – 5%; from 400 square metres – 18%. 

State Register of Payment Transaction Registers has been updated 

On March 10, 2026, the order No. 160 of the State Tax Service of Ukraine dated March 10, 2026 “On Amendments to Order No. 744 of the State Tax Service dated December 21, 2020” came into force. 

It has approved a new version of the State Register of Payment Transaction Recorders. As a result, the list of payment transaction recorder models restricted for initial registration has been increased. 

The updated version of the aforementioned register can be viewed via the link . 

Changes planned to the corporate income tax declaration form 

On March 04, 2026, the draft order of the Ministry of Finance of Ukraine “On Amendments to the Form of the Corporate Income Tax Declaration” was published. 

This initiative is primarily prompted by the entry into force of Law of Ukraine No. 4698-IX dated December 03, 2025, which we have previously written about. In particular, it provides for the establishment, from January 01, 2026, of a basic corporate income tax rate for banks of 50% for the 2026 reporting periods. 

In this regard, new provisions have been introduced into the Tax Code of Ukraine, which are currently proposed to be incorporated into the relevant notes to the tax declaration form and its annexes. 

In addition, the draft order provides for clarifying certain aspects of the approval of the list of tax reliefs in the relevant annexes to the corporate income tax declaration, as well as specific indicators regarding the limited amount of the minimum tax liability for a land plot. 

Increase in the cost of excise stamps is planned 

On March 03, 2026, the draft resolution of the Cabinet of Ministers of Ukraine “On Amendments to Clause 5 of the Regulations on the Manufacture, Storage and Sale of Excise Duty Stamps and the Labelling of Alcoholic Beverages, Tobacco Products and Liquids Used in Electronic Cigarettes” was published. 

This act proposes to increase the fee for a single excise stamp: 

• for alcoholic beverages – from UAH 0.3537 to UAH 0.46044; 
• for tobacco products, tobacco-containing products for electric heating and liquids used in electronic cigarettes – from UAH 0.1643 to UAH 0.2144. 

Changes are proposed to the single reporting forms for personal income tax, military levy and unified social tax 

On March 12, 2026, the draft order of the Ministry of Finance of Ukraine “On Amendments to Order No. 4 of the Ministry of Finance of Ukraine dated 13 January 2015” was published. 

It proposes, in particular, to approve separate reporting forms for sole traders and persons engaged in independent professional activities, as well as a new form of unified reporting for tax agents who are not sole traders and/or persons engaged in independent professional activities. 

These changes are due to the fact that, from January 01, 2026, the reporting deadlines for certain categories of taxpayers regarding amounts of income accrued (paid) to individuals, amounts of tax withheld from them and amounts of accrued unified social tax have changed from monthly reporting to quarterly reporting with a monthly breakdown. We have written about this in detail previously. 

Consequently, the draft order stipulates that reporting using the new form for sole traders and individuals engaged in independent professional activities will be submitted for the first time for the first quarter of 2026. 

At the same time, reports using the updated form for tax agents who are not sole traders and/or individuals engaged in independent professional activities will be submitted for the month in which the relevant order comes into force.