We cannot stress enough how important it is to underline the fact that it was merely a repeat first reading.
There is still a long way to go and though today’s adoption of the tax Bill is good news, this should be taken with restrained optimism — last year the Gambling Law received 3000+ amendments in between 1st and 2nd readings, so this year the game is on, especially judging the heated discussions in the legislation hall that we witnessed.
So if the Bill successfully passes all of the subsequent readings in the 2nd part of 2021, the gambling business in Ukraine will see the following changes:
- Operators would pay gambling tax in the amount of 10% of GGR and 18% income tax (regardless of the vertical)
- It should be additionally noted that it is also proposed to decrease the tax base for calculation of income tax by the amount of the paid gambling tax;
- Tripled license fees would be canceled for new operators, however, tripled license fees already paid by operators will be credited towards future annual license fees of such operators;
- The maximum amount of winnings exempt from the tax is set to an equivalent of EUR1,500 and in the case, when winnings exceed the set amount, only the excess amount of winnings is subject to player tax (this is applicable both for land-based and online offerings);
- It should be additionally noted that there is a special rule for land-based casinos and slot halls – it is proposed that upon calculation of tax base for winnings, such tax base should be deducted by the amount of player’s losses within the last 24 hours.
This week is the last work week in the Rada’s schedule, so the saga of the gambling tax will see its sequel later in the Fall of 2021.