Ukraine Reduces Interest Rate to 15.0%, Affecting Late Payment Penalty Interest

The National Bank of Ukraine has announced its decision to reduce the key policy rate from 15.5% per annum to 15.0% with effect from 30 January 2026. The rate was previously increased from 14.5% to 15.5% with effect from 7 March 2025. For tax purposes, this affects the late payment penalty interest, which is based on the National Bank rate. The penalty interest rate is equal to 120% of the National Bank rate, which results in a reduction in the penalty interest rate from 18.6% to 18.0% per a…