The Ukrainian Legislature’s Financial, Taxation, and Customs Strategy Committee has finally endorsed a gambling tax proposal, establishing a uniform 10% tax rate on all gambling activities.
The committee examined Bill No. 2713-d, put forward by committee leader Oleh Marusiak, which seeks to enhance the Gambling Law enacted in August 2020, legalizing diverse forms of wagering in Ukraine.
The proposal initially suggested a 5% GGR tax on betting, a 10% tax on online gambling and lotteries, and a 12.5% tax on slot machines. Nevertheless, the committee ultimately settled on a unified tax rate for all sectors.
Operators will also be required to pay an 18% general corporate income tax.
Furthermore, gambling winnings exceeding eight months of the minimum wage (currently 48,000 hryvnias) will be subject to income tax.
The nation’s Gambling Law previously mandated that online betting and gaming licenses be three times higher than standard initially, only to be reduced after establishing an online player monitoring system. However, the new tax legislation has eliminated this requirement.
The Parliament still needs to ratify the new tax proposal before it can be officially enacted.
While the Ukrainian Gaming Commission (KRAIL) has given the green light to the nation’s inaugural licenses, awarded to online operators Spaceiks (running the Cosmolot brand) and Parimatch, the legislation hasn’t been implemented yet. Nevertheless, these operators are required to pay licensing fees before they can officially secure their permits.
Before the enactment of 2713-D, Ukraine had introduced four other tax proposals, establishing diverse gambling tax rates.
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