Taxes on money received on the Internet (legalization of casino winnings)

What a player needs to know if he plays in a casino / bookmaker / poker that DO NOT HAVE A UKRAINIAN LICENSE.

Legalize income as an individual

A resident of Ukraine must pay personal income tax (PIT) of 18% and military tax of 1.5%. Total 19.5% of income.

Paying taxes on earnings without registering as a sole proprietor is beneficial for people with small turnovers and those who receive income irregularly. In this case, you will not have to pay the Unified Social Contribution (USC) every month.

Work scheme:
* We receive money.
* We withdraw funds to a bank card.
* Once a year we calculate our income and submit a declaration to the tax office.
* We pay fees at the bank or online.

It all looks very simple, but there are important nuances that need to be taken into account when working this way.
Payments in foreign currency must be converted into hryvnia at the rate of the National Bank of Ukraine.

The date of receipt of income is considered to be the date of receipt of funds into the account.

In 2016, the National Bank of Ukraine banned the activities of four payment systems:
* Qiwi
* Webmoney
* Yandex.Money
* Wallet One

The ban was introduced because payment services did not coordinate their activities with the regulator (NBU). Whether or not to take into account income received on electronic wallets is a personal choice for everyone.

The National Bank will monitor compliance with the law, and banks have the right to block customer accounts if money comes from these e-wallets. The sanctions exist only on paper; there have been no precedents for mass blocking of bank accounts for transactions from prohibited payment systems.

And the last nuance is that you need to file an income tax return after the calendar year in which they were received. According to paragraph 49.18.4 of the Tax Code of Ukraine, the deadline for filing an income tax return is May 1. If it is a weekend or a holiday, the date is postponed to the next banking day.
For late submission of tax returns by an individual, a fine in the amount of 10 non-taxable minimums is provided.

Individuals must pay the fees within 10 days of filing the declaration. If the delay is up to 30 calendar days, 10% of the repaid tax debt will have to be paid separately, over 30 days - 20%. After 3 calendar months, a penalty is charged in accordance with Article 129 of the Tax Code.

What a player needs to know if he plays in casinos / bookmakers / poker that DO NOT HAVE A UKRAINIAN LICENSE.

How to legalize income from the Internet

According to the Tax Code, citizens of Ukraine are required to pay 18% tax and 1.5% military tax on income, even if they are not registered as an entrepreneur. Almost all types of income are taxed at the same rate.
Tax evasion entails criminal, administrative and financial liability. The amount of punishment depends on the nature of the violation. From a fine of 17 thousand hryvnia to imprisonment for 10 years. Basis: Article 212 of the Criminal Code of Ukraine.

If a citizen has not previously had problems with the law under this article and has paid all taxes, fees, penalties and fines before being brought to criminal responsibility, there will be no serious consequences.

There are two main options for legalizing income from the Internet in Ukraine:
a) an individual
b) individual entrepreneur (IE or FOP in Ukrainian).

In Ukraine, there is a law on banking secrecy, so internal banking monitoring applies to one-time amounts over UAH 150,000 or card receipts over UAH 400,000 per month.

Banks do not provide information to the tax office until the tax office makes a specific request. The tax office will make such a request based on the results of an investigation of some counterparty. And this happens exclusively in the case of financial fraud with taxes. Another option is huge purchases on your part that end up in the registers and there is no understanding where you got such income for such expenses.

What if the bank unexpectedly blocks the card and asks to tell about the source of the money?
Show a screenshot of the withdrawal from the online casino. If the withdrawals are large and systematic, enter them in the annual declaration and pay income tax.

Egoistic position. Are forum members only residents of Ukraine?

The tax inspector asks a question
Who is this Alex to you?

You say, "I played at the casino, won $100, here is a screenshot of the withdrawal on 01/04/2022, and these $100 came to my card on 01/05/2022. I don't care how exactly the casino paid. I will include this amount in the annual declaration for 2022 and pay 20% tax by May 20, 2023. I promise not to participate in rallies or hug riot police until then."
And that's all.
The tax office is concerned with only one issue. If you have income, the state must tax it.
Moreover, you don't have to worry until the tax inspector invites you to his office and asks "Who is Alex?" The probability that this won't happen in the next 10 years is about 99.99%. Even if a violation is detected, you quickly pay the "overdue taxes" yourself with a small penalty and the topic is closed.