The National Bank of Ukraine has announced its decision to reduce the key policy rate to 22.0% per annum with effect from 28 July 2023, which is down from 25.0%. 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 30.0% to 26.4% per annum.