Ukraine stakeholders have cited progress on the deliberation of the gambling tax framework required to finalise the market terms of the federally approved Ukraine Gambling Law.
Yesterday, the Verkhovna Rada (federal parliament) approved the first reading of amendments made to the Gambling Law’s ‘tax code’.
Alongside outstanding technical certifications, the Rada is yet to settle on the final tax framework of the Gambling Law, which secured its federal passage last July.
An appraisal made by the Committee of Tax and Finance recommended that the Gambling Law maintain a single 10% GGR tax rate applied across all licensed verticals, replacing its previous tiered % tax framework.
The Committee’s amendment has been carried forward by the Rada, which will apply Ukraine’s standard 18% income tax on licensed businesses with GGR charges to be deductible.
Of significance, the Rada chose to terminate its costly ‘triple fee’ licensing charges made on operator’s slot machines, betting points and online casino games inventories.
For online casino, the Gambling Law will maintain its fixed $200,000 yearly licensing fee. Operators that have paid the ‘triple fee’ charges will be credited as future annual licence payments.
Despite operator pleas, the Gambling Law will maintain its tax on player winnings, which will be charged on players net winnings of +€1,500, in which casino operators must apply a 24-hr win/loss calculation on a player’s wagering activity.
Though the Rada continues its slow progress on finalising the Gambling Law’s tax policies, the first reading of the gambling tax code should be recognised as a crucial development as amendments are approved ahead of the Rada summer recess.
As developments stand, Ukraine’s gambling ongoing tax saga will likely conclude during the fall of 2021.