Taxes on winnings in Ukraine: 18% personal income tax and 5% military tax are withheld by the game organizer.
Within Ukraine, every lottery or gambling reward is automatically liable to levies.
VIY communicates this information.
As stated in the Tax Code of Ukraine (Paragraph 164.2.8, Article 164), rewards and prizes are factored into the overall taxable earnings of individuals. This signifies that any form of disbursement—be it monetary or tangible—is subject to taxation.
As of 2025, lottery earnings face taxation at these percentages:
– 18% – personal income tax (PIT);
– 5% – military levy.
Consequently, the aggregate tax amounts to 23% of the earnings.
The tax is remitted not by the individual player, but by the gambling establishment. That is to say, upon obtaining your earnings, the establishment directly withholds 23% and remits it to the national treasury.
This stipulation is pertinent to all earnings, irrespective of whether they are cash, a vehicle, or a residence. Should the earnings be non-monetary, their fair market worth is likewise liable to taxation. As per Article 168 of the Tax Code of Ukraine, levies are settled within the time frames designated for the monthly fiscal cycle, namely, when the prize is acquired.
Numerous players assume that earnings constitute “unencumbered funds,” yet, in reality, within Ukraine, any earnings are immediately diminished by almost a quarter due to levies.
Hence, while strategizing how to utilize your earnings, it is prudent to consider compulsory tax deductions.
Governance of gambling activities in Ukraine is executed in accordance with Law No. 768-IX of July 14, 2020 “On state regulation of activities related to the organization and conduct of gambling”:
– all wagers, earnings, and dealings are documented in the establishment’s digital system, which is overseen by the government;
– disbursements are executed solely in electronic form through the banking infrastructure, precluding any potential for tax dodging;
– all varieties of earnings (financial or physical) are susceptible to taxation.
