Danylo Hetmantsev, chairman of Ukraine’s Finance Committee, announced on Telegram that a new tax law will bring in a minimum of UAH1.5bn per year into Ukraine’s budget. The 18% tax applies to turnover only, not to gross gaming revenue (GGR), as stated in article 136.4 of Ukraine’s tax code.
Yaroslav Zheleznyak, People’s Deputy of Ukraine, also confirmed on Telegram that online casinos will now be subjected to the 18% tax on their GGR, which they had previously avoided paying. Despite opposition, the tax was reintroduced through an amendment to Ukraine’s tax code under draft law 6529 announced by Ruslan Stefanchuk, chairman of Ukraine’s legislature Verkhovna Rada.
Along with the amendment to the tax code, draft law 6529 expanded the list of sanctions that the National Security and Defence Council of Ukraine can impose. The gambling industry has faced increased scrutiny and sanctions due to alleged Russian connections, especially amidst the ongoing conflict with Russia.
In response to Presidential Decree No 145/2023, which imposed sanctions on various companies and individuals, including betting companies like Parimatch, the company suspended its operations in Ukraine. A petition requesting a review of the sanctions reached 25,000 signatures.
Previously, a bill passed by Ukraine’s legislature set a 10% tax rate for all forms of gambling. However, operators were still required to pay an 18% general corporate tax rate. The Scientific and Expert Management Committee questioned the justification for lowering taxes on licensees.
In addition to tax changes, Ukraine implemented a new law to combat money laundering and terrorist financing. This law includes procedures for at-risk companies and allows for unplanned inspections by Ukraine’s regulator, KRAIL, based on the level of money laundering and terrorist financing risk.
