Gambling tax proposal in Ukraine

[Fundamentals Of]

I honestly see no problem with increasing the tax on gambling. If that is what it takes to discourage gamblers and probably avoid a worsening statistics of gambling addiction and gambling-related crimes, then it is good. If that is also what it takes for Ukraine to somehow raise funds in order to support the more basic needs of the populace especially in the times of pandemic, then it is also good. After all, gambling is just a luxury or just one of the ways people waste money.

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[dothebeats]

If this enables the government to stop gamblers—especially the problematic and addicted ones—then it's by no means an excellent way of helping to revive the economy and reducing the number of problematic gamblers in the country. Adopting a steep taxation model and expensive licensing fees will discourage new platforms to pop up and be an addition to the list of things they need to worry about. It's honestly better this way than Ukraine having to ban the industry at all. It's literally hitting two birds with one stone, though they could be aiming for the eradication of gambling on the country more than getting something from the industry itself.

[Sithara007]

I assume this is only on net winnings. Let's say you are losing for weeks without any profit and then one day you make finally a nice profit. It would seem kind of harsh if our previous losses are not taken into account. Every government needs money, especially Ukraine. Paying taxes on our winnings is fine, because if win 1 million abs have to give up 10% it's fine. In some countries the tax on lotteries are as high as 50%. I would say everything below 30% is still reasonable.

In the article it is mentioned that the tax is applicable on total revenues (i.e the total income made by the casino as a result of the house edge). Winnings by the gamblers will be subjected to income tax, and they will not come under corporate tax. And income tax will be calculated on annual basis. So if a particular individual had won $1000 and lost $800 for that particular year, then he needs to pay tax on the difference (i.e $200). If the tax is deducted every time, then the gambling business will become unviable.

[Chato1977]

according to the article it is 10% taxation in which for me is very decent and good enough to manage a good gambling experience for the whole Ukraine .

Even in many countries there are much higher tax required by the government.

Recently, in many countries of the former CIS there is a gradual impoverishment of the population, many businesses are closing because it is simply unrealistic to compete with Chinese production. Due to the decline in demand for oil and gas, the government is forced to increase the tax burden on business and the gambling business is no exception. 

and  I believe that there are no really a big issue on this part.

Does OP comes from Ukraine? because why it seems that he is more affected compared to Ukrainian in this forum.

[uneng]

There is a global tendency of increasing taxes nowadays due to the infinite global economical crisis boosted recently by coronavirus pandemic. We are going to see taxes increasing and currencies losing value much faster from now on. In this case it really doesn't look too absurd, because in my country the lottery tax for winners is around 30% and probably there are some extra taxes hidden besides these 30%.
It would be interesting to know what ukrainians have to say about it. As I see people there don't accept to be abused by the government.

[iv4n]

I honestly see no problem with increasing the tax on gambling. If that is what it takes to discourage gamblers and probably avoid a worsening statistics of gambling addiction and gambling-related crimes, then it is good. If that is also what it takes for Ukraine to somehow raise funds in order to support the more basic needs of the populace especially in the times of pandemic, then it is also good. After all, gambling is just a luxury or just one of the ways people waste money.

I don't see any problems here as well, but it's probably because we gamble with crypto and we are not whales! So we are partly anonymous and we don't gamble with big money, so we are under radars and we don't pay any taxes on our winning, at least I don't!

Basically, it's what governments do... they see where is the money, impose their rules, regulate it and tax it! After all, that is happening with crypto in some countries already, while in some countries (like mine) there's still nothing about that!
And like always, some countries will have soft rules and an open approach, some will have hard rules and regulations to making something totally illegal for use!

[peter0425]

I honestly see no problem with increasing the tax on gambling. If that is what it takes to discourage gamblers and probably avoid a worsening statistics of gambling addiction
 

I don't believe that The main target here is to discourage gamblers to play but to increase the collection because there are big expenses from the pandemic season.

and gambling-related crimes, then it is good. If that is also what it takes for Ukraine to somehow raise funds in order to support the more basic needs of the populace especially in the times of pandemic, then it is also good. After all, gambling is just a luxury or just one of the ways people waste money.

Yeah they are seeking for recovery funds because of too much expenses when the pandemic attach and also from the vaccine .

[jrrsparkles]

10% flat tax rate seems fair to be honest compared to some other countries which even collect 30 to 40% as tax but having the progressive tax is better than flat tax rate so they can avoid the people from stop their gambling activities.

[Wexnident]

I honestly see no problem with increasing the tax on gambling. If that is what it takes to discourage gamblers and probably avoid a worsening statistics of gambling addiction
 

I don't believe that The main target here is to discourage gamblers to play but to increase the collection because there are big expenses from the pandemic season.

I mean, why not both right? Besides, the gambling industry is a big business, not to mention that 10% is actually on the lowside, so it's not really a detriment. It's just a plus for both sides, government gets more money, casinos have more chances to spread their name, easy as that. Besides, even with casino taxes, I hardly doubt it could dent the damage that the pandemic caused. It'd be more likely for it to actually be remedied if once the pandemic is gone, is that people spend money outside instead of hoarding it.

[ReiMomo]

10% flat tax rate seems fair to be honest compared to some other countries which even collect 30 to 40% as tax but having the progressive tax is better than flat tax rate so they can avoid the people from stop their gambling activities.

Exactly, and that's fair enough if you will compare it to other countries. Ukraine must lucky enough because their government only asks a small amount to be taxed by the individual income tax. See on this list of countries by tax rates ( https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates ), you will see it's rarely that country to pay 10% for tax.

When it comes to tax revenue, the gambling industry was a great help, imagine, after lockdown implemented in all countries, it seems gambling was back to operate because they know how a big help will contribute in order to our economy will recover back. So that is fair enough to Ukraine.

[Fundamentals Of]

I honestly see no problem with increasing the tax on gambling. If that is what it takes to discourage gamblers and probably avoid a worsening statistics of gambling addiction
 

I don't believe that The main target here is to discourage gamblers to play but to increase the collection because there are big expenses from the pandemic season.

and gambling-related crimes, then it is good. If that is also what it takes for Ukraine to somehow raise funds in order to support the more basic needs of the populace especially in the times of pandemic, then it is also good. After all, gambling is just a luxury or just one of the ways people waste money.

Yeah they are seeking for recovery funds because of too much expenses when the pandemic attach and also from the vaccine .

Have you read the whole article? There was no mention of COVID or vaccine. There was actually no mention of the need to increase revenue coming from the gambling industry in order to support the rising expenses brought by the pandemic. But there was a mention of minimizing consumption. Aside from that, there was also a mention of gambling social impact which requires attention. Although I think it would help the country's need for funds especially in the time of pandemic, there is actually no reason to think that this is its main reason.

[South Park]

The have been a tax proposal recently announced which according to the officials will impact the overall situation of Ukraine. Few things to consider here :

The Scientific and Expert Management Committee of the Parliament argued the latest tax proposal on gambling would impact budgetsThe proposal set a flat 10% tax rate for all gambling verticals and removes plans for license fees hikeThe committee outlined a number of factors influencing gambling tax rate policy and not justifying reducing the tax burden on operators

If you do think that 10% is a huge amount I do think you have to read the full article where they state that for them it was a sum between 10-30% . For the government a 10% tax proposal is honestly low. But according to the experts this might reduce the consumption.

The companies might soon find them in a bind. The license fee is also supposed to hike which will cause probelms for the new companies. For the already established one's it might be a bad news nothing else but the government will soon see lower people interested in establishing their own companies. I do think the government is trying to compensate for covid and at the same time there are some probelms with Russia right now therefore they are trying to play safe and earn some money.

What do you think ?
https://www.gamblingnews.com/news/gambling-tax-proposal-may-impact-ukraine-state-and-local-budgets/

When it comes to activities or products that are thought to be negative for the society governments set very high taxes so a flat tax of 10% seems like a bargain to me, where I live the tax is a minimum of 30% and for what I have read it is a complete pain to get the license on the first place, so if anything I think this is a good thing and the casino operators at Ukraine should be happy they have sensible politicians which think about them and their interests.

[Rengga Jati]

If you do think that 10% is a huge amount I do think you have to read the full article where they state that for them it was a sum between 10-30% . For the government a 10% tax proposal is honestly low. But according to the experts this might reduce the consumption.

10% maybe not a high tax rate compared to some other countries with very high tax rates. So far, 10% becomes in the middle of the good choice and includes into the small tax country give to gambling.
We can see other countries rate taxes here:
https://www.taxback.com/blog/the-ultimate-guide-to-gambling-tax-rates-around-the-world
And some countries also differentiate the tax rate between online and offline taxes.

Well, if the tax rate becomes the best solution to press the gambling, just follow. It is relief that gambling is legal in that country that should involve the tax. In my country, it is still forbiden.

[Peanutswar]

I guess it's just a small amount for the gambling casinos because there are a lot of people today who makes gambling with a huge amount but again there are some management who don't want to pay a lot even though it a 10 percent imagine how much you earn and then the 10 per cent of the total earning will go to the government, still its a regulation on their country if they want to make gambling casino. The whole goal is to have an authority to run a gambling casino also its just a small amount to them if they will pay those for having a tax. Base on my country they are having a 10-20 percent of tax.

[michellee]

I guess it's just a small amount for the gambling casinos because there are a lot of people today who makes gambling with a huge amount but again there are some management who don't want to pay a lot even though it a 10 percent imagine how much you earn and then the 10 per cent of the total earning will go to the government, still its a regulation on their country if they want to make gambling casino. The whole goal is to have an authority to run a gambling casino also its just a small amount to them if they will pay those for having a tax. Base on my country they are having a 10-20 percent of tax.

If the amount is small, the casino will not think much. I think the casino can pay the taxes because their profit will be bigger than the amount they should pay. I am sure the casino will follow the regulation from their country because as long as they can obey the rule, their business will be safe and no one can disturb them to make a profit. People can hope that it can help the country to grow, especially in this pandemic.

[YuginKadoya]

In my opinion, it should be 30% I do consider that it may affect some small or just starting gambling casino's in Ukraine but we are in the midst of a pandemic and instead of just focusing on the needs people tend to face on their wants that they don't usually need, and gambling is something that they surely hold on in times if they want instant money, some just consider this as having fun, I really think this is a fair idea that the government should implement, and by doing so I guess some people will now avoid gambling but I think people with stable financial status would just consider this as OK.

[Cling18]

10% is already a huge amount especially for small gamblers but other countries are actually asking for higher tax so it's still something to be grateful about. In our country, our government is always asking and looking for sources of taxes so gamblers are always being taxed more than 10%. If it's the government's law, then we have to abide it.

[johhnyUA]

The have been a tax proposal recently announced which according to the officials will impact the overall situation of Ukraine. Few things to consider here :

The Scientific and Expert Management Committee of the Parliament argued the latest tax proposal on gambling would impact budgetsThe proposal set a flat 10% tax rate for all gambling verticals and removes plans for license fees hikeThe committee outlined a number of factors influencing gambling tax rate policy and not justifying reducing the tax burden on operators

If you do think that 10% is a huge amount I do think you have to read the full article where they state that for them it was a sum between 10-30% . For the government a 10% tax proposal is honestly low. But according to the experts this might reduce the consumption.

The companies might soon find them in a bind. The license fee is also supposed to hike which will cause probelms for the new companies. For the already established one's it might be a bad news nothing else but the government will soon see lower people interested in establishing their own companies. I do think the government is trying to compensate for covid and at the same time there are some probelms with Russia right now therefore they are trying to play safe and earn some money.

Oh lol, I'm from Ukraine and here such business will be controled by the "right" people (in meaning, that this will be policemen or affiliated with government). So here is no much we can discuss  

But, here is full taxation: "Ha cьoгoднi в Укpaїнi гpaльний бiзнec oпoдaткoвyєтьcя зa тpьoмa нaпpямкaми. Пo-пepшe, opгaнiзaтopи aзapтниx iгop плaтять пoдaтoк нa пpибyтoк пiдпpиємcтв (ПнПП) y poзмipi 18% – як i iншi cyб’єкти гocпoдapювaння. Пo-дpyгe, дoдaткoвo дo ПнПП, вoни плaтять пoдaтoк нa дoxiд вiд гpaльнoгo бiзнecy (див. Bинocкa 2). Пo-тpeтє, тoй, xтo oтpимaв вигpaш, тaкoж плaтить пoдaтoк нa дoxoди вiд вигpaшiв тa пpизiв, i cтaвкa цьoгo пoдaткy дopiвнює cтaвцi пoдaткy нa дoxoди фiзичниx ociб (18%), щo пpибиpaє мoжливocтi викopиcтaння piзниx cтaвoк пoдaткy для мiнiмiзaцiї oпoдaткyвaння гpoмaдянaми. " link

So for business it will be like 10 % + 18 % (if they will pay it at all lol)
And 18 % also if you're winning something.

[Ryker1]

^[snip]
If you do think that 10% is a huge amount I do think you have to read the full article where they state that for them it was a sum between 10-30% . For the government a 10% tax proposal is honestly low. But according to the experts this might reduce the consumption.

Well, on my own --that is not a huge amount, 10% is just a normal percentage that gives as a tax to most gambling companies. There are too many gambling companies that give more than 30% or even 40% tax rates. Considering gambling businessmen in Ukraine are lucky enough of this proposal, they had a great advantage if we compared by other countries. Each country has a different tax rate, there are high tax rates like Germany and UAE also opposite that has the lowest rates. So it matters which country you are in.

[johhnyUA]

Well, on my own --that is not a huge amount, 10% is just a normal percentage that gives as a tax to most gambling companies. There are too many gambling companies that give more than 30% or even 40% tax rates. Considering gambling businessmen in Ukraine are lucky enough of this proposal, they had a great advantage if we compared by other countries. Each country has a different tax rate, there are high tax rates like Germany and UAE also opposite that has the lowest rates. So it matters which country you are in.

Guys, read my article above: They are talking about 2nd tax. We have first tax which is 18 % of your profit. So, total tax with 10 % will be like 28 % on casino profit. This is not a small amount, but for gambling it will fit the best (because gambling is a business with small investment and small operational cost)