Ukraine parliament committee approves tax framework

A Ukraine parliamentary committee has approved the initial tax framework for its nascent gambling industry, setting a rate of 5 percent of gross gaming revenue for sportsbooks.

For online casinos, tax will be payable at 10 percent of GGR and 12.5 percent for slots. There has been proposed an 18 percent corporate tax rate on profits, with no VAT.

The rates will be paid quarterly once a system of online monitoring has been put into place. 

“I also would like to add that these figures are preliminary and it would be very optimistic to claim that they are set in stone,” says Ilya Machavariani, who heads the Russian and CIS gambling practice group at law firm Denton’s.

I understand that right now the level of debate with regard to the taxes is rather conceptual as the government is trying to decide what approach should be pursued: draw up something simple and adopt it now in order to change it later when the market would be already in place or try to create a complex and balanced tax framework at the expense of overall timelines for market launching.”

Voting on the draft law is scheduled for next week, the last before parliamentary recess.