Personal Income Tax Revenues Rise in Q1
In the first quarter of 2026, Ukraine collected 160.7 billion UAH in personal income tax, an 18% increase compared to last year. Kyiv contributed the largest share, with 38.3 billion UAH. The State Tax Service attributes the growth to higher wages and improved tax administration. The ongoing annual declaration campaign, which runs until May 1, has also boosted compliance. This trend reflects stronger fiscal discipline despite economic challenges.
New Rules on Suspension of Employment Contracts
On March 14, 2026, updated rules on suspending employment contracts came into force. Employers may now suspend contracts for up to 90 days. The measure is designed to help businesses retain staff during wartime disruptions when operations are halted. The law clarifies procedures for documentation and protects employee rights during suspension. This balance aims to support both employers and workers under martial law conditions.
Legislative Updates in April 2026
April brought several important legal changes: new rules for sick leave, salary indexation, and tax benefits for small businesses under the simplified system. Adjustments were also made to financial reporting and land payments. The official working time for April was set at 22 working days and 8 rest days. The extension of martial law continues to shape labor relations and social guarantees. Businesses are advised to update HR and accounting policies accordingly.
Support for Farmers in Frontline Regions
In April, the government announced new tax incentives and compensation schemes for farmers operating in frontline areas. Special provisions will address high‑risk agriculture and relocation of businesses from conflict zones. The program aims to reduce economic losses and sustain agricultural production under difficult conditions. Authorities emphasize that supporting agribusiness is vital for food security and regional stability. This initiative is part of broader wartime economic resilience measures.
