Ukraine has finally approved a bill setting a tax rate for gambling following its legalisation last year.
Ukraine.- The Committee on Finance, Tax and Customs Policy has finally approved one of several bills that proposed tax rates for the newly legalised gambling sector in Ukraine.
The committee has approved a bill that will set a flat 10 per cent tax rate for all forms of gambling.
The approved bill is a modified version of Bill 2713-d, which was put forward by committee chair Oleg Marusyak as Ukraine legalised gambling last August.
The bill originally proposed separate tax rates on GGR for different verticals: 5 per cent on bookmaking, 10 per cent for online gambling and lotteries, and 12.5 per cent for slot machines.
However, the committee has decided to instead opt for a flat 10 per cent rate for all verticals.
Operators will also pay a general corporate tax rate of 18 per cent. Customer winnings that surpass more than eight months’ minimum wage – currently UAH48,000 (€1,422) – will be taxed as income.
The new bill also abolishes a previous requirement for the licence fees for online gaming to be set at three times higher than normal until an online player monitoring system has been put in place.
The bill must still be approved by Ukraine’s parliament, the Rada, and must be signed into law by the president. However, Ukraine’s new gambling regulator has already approved the first gaming licences.
The Commission for the Regulation of Gambling and Lotteries (KRAIL) has approved licences for Spaceiks and Parimatch.