Specialists of the State Tax Service explained how the automated tax debt write-off system works: monthly write-offs have tripled

Press service of the State Tax Service of Ukraine, published 16 December 2025 at 14:20 Chapter: News

New automated tax debt write-off system went into operation in Ukraine a little over three months ago. It has already proven its effectiveness. Monthly debt write-off volumes have more than tripled. This was informed by acting Head of the State Tax Service Lesya Karnaukh on the Facebook page.   

She posted a video that explains step-by-step how the mechanism works. 

“Mechanism is as transparent as possible – single approach for everyone. It applies only to legal entities that have tax debt. But the heated discussion around the tool does not subside” – Lesya Karnaukh stated. 

This system is not new to the tax world. Now we have it. 

What does this look like in practice? 

Human factor is minimized. No manual decisions. Everything is strictly within the legislative framework.

This applies only to legal entities that have tax debt. 

How does the system work? 

- Every day, the State Tax Service’s information systems automatically generate data regarding the debt.

- System generates payment instruction.

- Electronic signature is applied.

- Document is instantly sent to the Treasury.

- The Treasury checks requisites and automatically forwards instruction to the bank.

- The bank writes-off only clearly defined amount. 

Everything works through the electronic payment system – according to the unified rules.

Debtors will not be able to trick. Everything is automatic. 

Debt write-off is not unexpected! 

If tax debt arises, the State Tax Service informs the payer about its existence. There is enough time to pay it voluntarily. In case of refusal, specialists of the Tax Service go to the court. 

If the company declared tax amount itself, but did not pay it within 90 days, the debt is collected without the court decision. This is stipulated by the Tax Code.