State Tax Service of Ukraine: All Payments From The Operator To The Player Should Be Subject To Taxation

On August 3, the State Tax Service of Ukraine provided an explanation regarding the taxation of gambling winnings. The Ukrainian Tax Code contains somewhat ambiguous wording, leading operators to interpret its provisions differently.

In the statement, Ukrainian authorities have clarified the situation and their stance on taxing winnings as follows: all payments, such as payouts of winnings and refunds of bets, from the operator to the player should be subject to taxation, regardless of previous expenses, such as deposits or losses.

Taking into account the taxation of winnings in Ukraine, it is worth noting that the state imposes 19.5% on them.

Dmitry Hotsyn, Senior Consultant at 4H Agency, commented on the statement and noted that this position of the state would not be beneficial.

“Various events have recently taken place in the Ukrainian market, which do not enhance its attractiveness. These events include the imposing of sanctions on Ukrainian operators and a lack of clarity regarding the adoption of a tax bill for the gambling business.

“Now, this list has been further extended with an explanation from the tax service, significantly worsening the position of the legal market. This move may encourage players to shift to offshore sites to avoid the tax on winnings, affecting not only the actual winnings but also their bets,” he pointed out. 

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