On August 30, 2024, Law No. 11416-d was adopted, introducing amendments to the Tax Code of Ukraine regarding taxation during martial law. One of the key changes is the increase in the military tax rate from 1.5% to 5%. For military personnel and certain privileged categories of citizens, the rate remains unchanged at 1.5%. 

The changes apply to all Ukrainian citizens, including Piraeus Bank clients. Here's how they impact two of our main products for individuals: the Wincard (a debit card with cashback) and deposits. 

How will Wincard cashback change? 

Our customers will continue to earn up to 2% cashback on transactions. However, to reach the maximum cashback amount of 500 UAH, customers will now need to spend over 34,000 UAH, instead of the previous 31,000 UAH. This adjustment is due to the increased military tax, which is applied to cashback. 

Deposits: new income conditions 

For clients who are not military personnel, the changes will affect the net income from deposits. The 5% military tax rate will reduce the effective profitability of deposits by 3.5%. 

For example, with a nominal annual interest rate of 14%, the customer will effectively receive approximately 10.5% annually after the military tax deduction. 

What does this mean for you? 

For Wincard users: Review your spending habits to adapt to the new conditions and continue maximizing your cashback benefits. 

For deposit holders: Consider the adjusted net profitability when planning your savings. 

For legal entities, the impact of these changes depends on the specifics of their activities. We recommend consulting your tax advisor or legal consultant for more detailed guidance. 

We are committed to transparency and supporting our clients during this period of change. A detailed list of privileged categories exempt from the increased military tax rate can be found in the law's text. 

For additional information, please visit our branches or contact the Piraeus Bank support service. 

We are always here for you, ready to assist on your path to financial stability during challenging times!