Ukraine consistently implements EU and OECD standards: Sergii Marchenko on tax reform at international conference in Japan

Ukraine’s Minister of Finance Sergii Marchenko took part in the international Platform for Collaboration on Tax: Tax and Development Conference, held on March 2–3 in Tokyo, Japan.

The Platform was established in April 2016 and promotes collective efforts to strengthen tax systems in developing and transition economies.

It is a joint initiative of the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations, and the World Bank Group aimed at enhancing cooperation in domestic resource mobilization.

Sergii Marchenko spoke during a panel discussion dedicated to the challenges and opportunities of implementing tax reforms.

Responding to a question about the role of tax policy in the context of Ukraine’s EU accession and post-war recovery needs, the Minister emphasized that a stable tax system is a key element in ensuring sustainable budget revenues, protecting the tax base, and creating a level and fair business environment.

Ukraine is consistently implementing its tax reform plan, aligning tax legislation with European Union law and the standards of the Organisation for Economic Co-operation and Development (OECD). In particular, key initiatives include:

• implementation of the Anti-Tax Avoidance Directive (ATAD);
• bringing transfer pricing rules in line with OECD standards;
• further introduction of automatic exchange of tax information mechanisms as part of integration into the EU’s common financial space;
• strengthening transparency of corporate structures.

According to the Minister of Finance, despite the conditions and challenges caused by russia’s full-scale aggression, the tax system demonstrates resilience and effectiveness. In 2025, domestic revenues to the State Budget increased by 24% compared to 2024, amounting to approximately USD 10 billion. These funds were directed to financing the Armed Forces of Ukraine.

The Minister emphasized that creating equal conditions for competition and reducing the share of the shadow economy remain important priorities.

“For Ukraine, tax reform is both a tool of European integration and a path toward financial resilience during the war and reconstruction. We are implementing rules that comply with EU and OECD standards. Protection of the tax base, transparency, and predictability are the foundation of trust from investors and international partners,” Sergii Marchenko emphasized.

In addition, adaptation to European tax standards is an important prerequisite for expanding access to EU financial instruments, particularly within the framework of the Ukraine Facility.

Sergii Marchenko also spoke about cooperation with the IMF in the context of tax reform. On February 26, 2026, the IMF Executive Board approved a new cooperation program with Ukraine for 2026–2029. The program envisages further strengthening of domestic revenue mobilization, combating tax base erosion, and modernizing tax administration. Tax reform is one of the key elements of the program and signals to international partners the irreversibility of Ukraine’s path toward the EU.

In conclusion, Sergii Marchenko noted that tax changes implemented during wartime are laying the foundation for a transparent economy during post-war recovery and Ukraine’s full integration into the EU internal market.