The National Bank of Ukraine has announced its decision to cut the key policy rate to 8.0% per annum with effect from 24 April 2020, which is down from 10.0%. The decision to cut the rate was made to continue the easing of monetary policy in light of the COVID-19 pandemic and quarantine. 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 12.0% to 9.6% per annum.