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

LUCKY-13 wrote:
All questions on taxation are removed if you play in an online casino with a Ukrainian license. In this case, the casino acts as a tax agent for the state and is obliged to pay taxes on winnings.

Excuse me, but how does it work?
In which law is this written?
Is there a link to the article of this law?

LUCKY-13 wrote:
Peculiarities:
* tax rate is 5% of the income amount;
* 22% Unified Social Contribution;

As an individual, you have to pay 18+1.5 = 19.5% of your income. As an individual entrepreneur, 5% and 22% unified social contribution? And where is it cheaper to register an individual entrepreneur?

You can pay taxes as an individual only if your income from the Internet is small and unsystematic. In other cases, you need to register as a sole proprietor (individual entrepreneur).

Legalizing income as an individual entrepreneur

* Systematic profit-making without registering as an entrepreneur violates business legislation.
* Lower tax rate.

Let's look at a simple example. A player earns about 20,000 hryvnia per month. Over the course of a year, he gets 240 thousand hryvnia. If you pay taxes on this amount as an individual, you get 46,800 hryvnia. In the case of an open sole proprietorship in the 3rd group with a 5% rate, you get 23,017 hryvnia: 12,000 personal income tax + 11,017 UAH unified social contribution.

Peculiarities:
* tax rate is 5% of the income amount;
* 22% of the unified social tax from any arbitrary amount > 6000 UAH;
* submitting reports and paying taxes once every 3 months;
* annual income up to 7 million hryvnia.

If the income limit is exceeded, you must switch to the general taxation system.



Registration of sole proprietorship - 3rd group, simplified taxation system

List of the most popular KVEDs, which cover almost any activity in the IT sphere:
63.11 Collecting data, posting information on web sites and activities related to them;
62.09 Other activities in the field of information technologies and computer systems;
63.12 Web portals
58.21 Video games
58.29 Types of other computer security
62.01 Computer programming;
62.02 Consulting on nutrition information;
63.99 Provision of other information services.

!!! Sole proprietors often make mistakes and, due to inexperience, add code 73.11 Advertising agencies to the application. This cannot be done, since advertising placement is regulated by separate laws.



Opening a sole proprietorship on the Diia portal - 7 minutes!
* Register or log in (if already registered) in the citizen's account on diia.gov.ua using an electronic signature.
* Fill out the online form to receive the service.
* The completed application for registration of a sole proprietor will be automatically sent to the registrar at your place of registration or at the place of registration indicated in the migrant’s certificate.
* If you have chosen a simplified form of taxation, the application for switching to a simplified system will be automatically sent to the tax authority at your place of registration or at the place of registration indicated in the resettler’s certificate.
* The status of the application can be checked in the citizen's account. Notification of registration or refusal will appear in the account and will also be sent by e-mail.



The procedure for registering a sole proprietorship through "Diia" takes 24 hours . Information about the registered sole proprietorship will become publicly available on the website of the Ministry of Justice of Ukraine and in the "Registers" section on the website of the State Tax Service of Ukraine.

As soon as the entry on the registration of the sole proprietor appears in the Unified State Register, you can get an extract from the register in the citizen's office. The extract has legal force - it can be printed and used like any other document.

Bank account
It is not possible to receive payment for services rendered to your personal account; for this purpose, a special entrepreneurial account for sole proprietors is used, and to receive income from non-residents in dollars or euros, it is necessary to open an entrepreneurial account in the corresponding currency.
The number of accounts that an entrepreneur can open, as well as the number of currency accounts, is unlimited. If you are a PrivatBank client, you can open an entrepreneurial account online, without visiting the bank.

Reporting
Entrepreneurs of the third group submit a single tax payer declaration once per quarter. This declaration indicates the income from entrepreneurial activity received for the current reporting period. The declaration form is filled out and sent online using an electronic signature.
Previously, after registering a sole proprietorship, it was necessary to register a book of income records with the tax service. But from January 1, 2021, this requirement was canceled. Instead of a book of records, there will now be a standard form that can be maintained online.

Taxes
In the third group of the single tax, the entrepreneur pays a single tax once a quarter in the amount of 5% of the income received into his entrepreneurial account and a single social contribution in the amount of 22% of an independently determined amount equal to or exceeding the minimum established wage.

! You cannot withdraw money to a personal card, transfer it from it to a private entrepreneur's card and pay taxes at a rate of 5%. In this case, you will also have to pay 19.5% personal income tax.

Alexey Marek
"Our agency has been earning money on affiliate networks for quite a long time. We receive most of the payments from sole proprietors on the 3rd tax group (in total, for more than 3 years). The main sources of income now are Google Adsense, YAN and Travelpayouts. The sole proprietor's current account is serviced by PrivatBank. Reports are submitted online, the process is fully automated and requires minimal intervention from an accountant. There were no problems with currency control. The first 1-2 payments were delayed for several days due to the Ukrainian side checking payments, but now we receive all accruals practically on the same day (sometimes the next day). Standard invoices are enough for the bank (although at first they also required a signed agreement. Now there are no problems with this."

* * *
All questions on taxation are removed if you play in an online casino with a Ukrainian license. In this case, the casino acts as a tax agent for the state and is obliged to pay taxes on winnings.

How to file a tax return remotely?

The person has an unsystematic income, which he first receives in electronic wallets, and then transfers to his bank card.

1) Obtaining a digital signature. EDS is an electronic signature that identifies an individual. It can be obtained from the ACSC or created through the Privat24 online banking.

To receive a file through the Privat service, the data about the individual must be in the system. That is, any issued card is sufficient.
Registration of an electronic digital signature via Privat24:
Let's log in to online banking.
Go to the “Business” tab.
Select the “Download certificate” option.
We are checking the questionnaire data.
We set a password for the storage.
We confirm the operation with the code from the SMS.
Save the file.
We write down the serial number of the key.
An email will be sent to you confirming the issuance of the digital signature.
The key is valid for 1 year. The signature cannot be extended. After the expiration date, it must be obtained again using a similar scheme.

2) After registering the key, you need to log in to the Taxpayer's Office (website cabinet.tax.gov.ua/ ), fill out the declaration electronically, and send it to the tax office.

3) Pay the tax. We conduct the transaction through Privat24 with a commission of 1%.

4) In the “Status of settlements with the budget” section of the taxpayer’s account, check whether the money has been received or not.

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.

Snezhanna wrote:
As an individual, you have to pay 18+1.5 = 19.5% of your income. As an individual entrepreneur, 5% and 22% of the unified social contribution? And where is it cheaper to register an individual entrepreneur?

A sole proprietor in group 3 has a maximum annual income of UAH 7,002,000 (1,167 minimum wages).
You pay 5% in income tax and lose 1% on cashing out.

In addition, a single social contribution is paid in the amount of 22% of a self-selected amount, which must not be less than the current minimum wage (22% of 6,000 UAH = 1,320 UAH/month).

The main advantage of working as an entrepreneur is the ability to officially confirm your income. This may be required to obtain a visa or a loan. The second advantage is the insurance record, which affects the size of the pension.
Entrepreneurial reporting – a declaration of a single tax payer – is submitted once per quarter.
Many people don't know this, but the Ukrainian simplified tax system is one of the most liberal in Europe, with a low tax rate and simple reporting.

That's it! Nothing else is needed.