Stakeholders in Ukraine have emphasized the progress on the gaming tax structure needed to conclude the market considerations of Ukraine Gambling Law, authorized by the fed.
Last week, Verkhovna Rada (federal parliament) accepted the first reading of the Gaming Law’s tax code adjustments.
Besides unsettled technical certifications, the parliament is yet to decide on the final gaming tax framework of the Law that fortified its federal reading last July.
According to the Committee of Finance and Tax’s appraisal, the Gambling Law needs to ensure one 10% GGR (Gross Gaming Revenue) tax rate. The tax would apply to authorized verticals. That move replaces the former tiered % tax framework.
The Verkhovna Rada approved the proposal by the Committee. However, that will apply to the nation’s ordinary 18% income tax on regulated enterprises. Moreover, the GGR charges will be deductible.
Operator’s Triple Fee
Meanwhile, the fed parliament decided to suspend the expensive triple fee that operators incurred to run their betting points, online casinos, and slot machines.
For online casino gaming, The Gambling Law kept a fixed $200K licensing fee paid yearly. Moreover, operators that already paid triple fee costs will have the extra fees credited to future license payments.
Despite the pleas by casino operators, the Gaming Law maintains its tax on the winnings by the gamers. Any player that wins more than 1,500 pounds will face the charges. Also, the gaming operators will have to ensure a 24-hour loss/win-loss calculation on the gamer’s wagering undertakings. Remember, different gaming platforms have their unique wagering conditions to be fulfilled by gamblers.
Although Ukraine fed proceeds slowly on finalizing the Gaming tax protocols, operators need to consider the initial gambling tax reading a vital development. That is because the parliament approves amendments before the Rada’s summer vacation.
For now, the current tax dispute by Ukraine on gaming has a chance to end in this year’s fall.
Which path do you think that the gaming market in Ukraine will take? Feel free to share your views below.
Stay tuned for the upcoming updates on the gambling industry in Ukraine.