The National Bank of Ukraine has announced its decision to cut the key policy rate to 11.0% per annum with effect from 31 January 2020, which is down from 13.5%. 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 16.2% to 13.2% per annum.