Insight
UKRAINE Licencing and taxation
Certification of the online system, to be used by a licensed operator, is mandatory. However, the procedures have not yet been defined by Ukrainian authorities.
Technical means of the online system must be situated in the Ukraine’s territory, and information in the online system must be processed in Ukraine.
After the Gambling Commission launches the State system of online monitoring (the Gambling Law established a two year deadline), the operator’s online system must be connected to such State system.
Te Gambling Law requires any Ukrainian provider of gambling software to get a special B2B licence. However, the Law does not impose on a licensed gambling operator any obligation to use only gambling software from such licensed Ukrainian software providers.
6 – Filing a licence application
Expenses depend on agreement with a provider of legal services and costs on formation of the documentary package.
7 – Licence fee
Online casino games: US$840,000 for each year – if the State system of online monitoring (SSOM) is not launched before payment of a licence fee. If launched, the annual fee will be US$280,000.
Online betting (a licence also covers landbased betting, which conduct is not mandatory): US$3.88m for each year – if the SSOM is not launched before payment of a licence fee. If launched, the annual fee will be US$1.29m.
Online poker: US$107,000 for each year.
Each licence is issued for five years. A licence is valid under condition a licence fee is paid annually before the start of each year.
You can also use a Ukrainian gambling licence calculator, designed by our team, at
https://www.sgl.com.ua/calculator/
8 – Operator’s website
A website must comply with the requirements of the Gambling Law, in particular in respect of content and language, before provision of gambling services.
9 – Banking guarantee/deposit
A licensed operator must get a banking guarantee/deposit covering US$1.5m. Any Ukrainian bank can be used by a licensed operator.
10 – Taxes
Current taxes for online gambling are too high: 18 per cent GGR tax plus 18 per cent corporate income tax,
P60 WIRE / PULSE / INSIGHT / REPORTS
and the GGR tax does not reduce a tax base of the corporate income tax. Operators must withhold 19.5 per cent of personal taxes from every winning paid to a player.
Te Ukrainian authorities promise to reduce taxation of both operators and players, and a respective bill has been registered in the Parliament (see Section 2)
SECTION 2. Taxation of gambling in Ukraine
Taxation is governed by the Tax Code of Ukraine. Its current gambling provisions were adopted in 2016 as a part of the Government’s efforts (unsuccessful in the end) to legalise gambling. In 2021, the situation is opposite: the Gambling Law is adopted, but a promised taxation amendments bill failed to pass even initial stages in the legislative process.
Te current taxation of gambling operators includes two taxes: (1) 18 per cent GGR tax for all operators, except lotteries (30 per cent GGR) and slot machine halls (10 per cent GGR); and (2) a general 18 per cent corporate income tax. It is important, that the GGR tax does not reduce a tax base of the corporate income tax.
Taxation is governed by the Tax Code of Ukraine. Its current gambling provisions were adopted in 2016 as a part of the Government’s
efforts (unsuccessful in the end) to legalise gambling. In 2021, the situation is opposite: the Gambling Law is adopted, but a promised taxation amendments bill failed to pass even initial stages in the legislative process. The current taxation of gambling operators includes two taxes: (1) 18 per cent GGR tax for all operators, except
lotteries (30 per cent GGR) and slot machine halls (10 per cent GGR); and (2) a general 18 per cent corporate income tax.
VAT is not applicable to transactions between a player and an operator.
On personal taxation side, every winning paid to a player must be immediately taxed by 18 per cent personal income tax and 1.5 per cent military tax. Both taxes must be withheld by an operator making a payment.
Te new Gambling Law is based on the concept of extremely high licence fees, probably the highest in the world. Tey should compensate the lack of government’s capacity to collect taxes in the first years of gambling legalisation, when the government should build-up enforcement infrastructure, primarily the State system of online monitoring (SSOM) for collecting actual information about each operator’s GGR.
Keeping this concept in mind, the government declared early on that gambling taxes will be much
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