The Ukrainian Committee on Finance, Tax and Customs Policy has approved a flat 10 percent tax rate on forms of gambling. The legislation is part of the Gambling Act that legalized various forms of gambling in Ukraine and was signed into law last August.
This bill initially proposed a 5 percent tax on gross gaming revenues for bookmakers, a 10 percent tax on online gambling and lotteries and a 12.5 percent tax on slot machines.
Operators will also be required to pay an 18 percent general corporate tax rate, reported iGamingBusiness.com. Moreover, winnings of more than eight months’ minimum wage (currently UAH48,000) will be taxed as income.
The country’s Gambling Act had also previously required that online betting and gaming license fees start out three times higher than normal, and would only be lowered once an online player monitoring system is put in place. However, the new tax bill abolishes that requirement.
The Rada will still have to approve the new tax bill, after which it may be signed into law.
Even though the bill has not come into effect, Ukraine’s Gambling Commission (KRAIL) has already approved the country’s first licenses, to online operators Spaceiks, which operates the Cosmolot brand, and Parimatch. These operators must pay license fees before the licenses are officially granted, though.
