Ukraine to Introduce 10% Tax Rate on All Gambling Forms

A gambling tax bill has at long last been approved in the Ukraine which will see a flat 10% tax rate imposed on all forms of gambling. The country’s Committee on Finance, Tax and Customs Policy considered that the bill 2713-d, which was brought forward by committee chair Oleg Marusyak, would complement the Gambling Act. This was signed into law in August 2020, and legalized various forms of gambling within the country.

Ukraine introducing a flat 10% tax rate

The tax bill originally proposed that a 5% GGR tax be imposed on bookmaking, while 10% would apply to online gambling and lotteries. A 12.5% tax rate was suggested for slot machines. However, the committee did not all agree to that sort of a setup, and so it was restructured to have a flat rate of 10% right across the board.

At the same time, operators within the Ukraine are all required to pay an 18% general corporate tax rate. And an additional vital part of the legislation dictates that all gambling winnings of more than eight months’ minimum wage (currently 48,000 Ukrainian hryvnia or £1,230) will be taxed as income in the country.

It is not the first time that the committee has made changes to certain bills and legislation. The aforementioned Gambling Act originally required online betting and gaming license fees to start out at three times more than what they finished up being. These would only be lowered once an online player monitoring systems was put in place. However, 2713-d pretty much abolishes that specific requirement.

That being said, the new tax bill must still be approved by Rada. Once it is, it can be officially signed into law. Despite this not having taken place yet, the Gambling Commission of the Ukraine (KRAIL) has proceeded with issuing its first gambling licenses. Online operators Spaceiks and Parimatch were the first to be approved, although they need to pay their license fees before the certificates are officially granted to them.