Online betting: the government enforces a tax that was voted in 2016

Almost six years after its approval, the government regulation the application of an indirect tax on online betting. the pledge ranges from 2.5% to 15%depending on the condition of the organizer or exploiter, as contained in the decree 293/2022, published this Thursday in the Official Gazette.

The indirect tax on online betting has been established in December 2016 through Law 27.346, which established a 5% tax rate on the gross value of each betbut in turn the executive branch had the power to do so increase it up to 50%as well as reduce it or temporarily leave the tax ineffective.

Subsequently, in the Budget Law 2021, the Online Control Register of the Betting System was created and in the decree published this Thursday it was specified some regulatory aspects in order to obtain a correct application “.

“Given that complexity of online gambling and betting taxationit is necessary to dynamic adjustment which allows its adaptation together with the evolution of the operations in question and the different modalities that may arise “, explained the decree in its recitals.

For this reason it was considered “relevant increase in the reference percentage the established rates “, in the case of subjects not registered in the registry.

The rate range to apply is the following:

• subjects resident in Argentina and registered in the Online Checklist of the Betting System: 5%.

• If those subjects demonstrate that they have a invested capital Only for this time over $ 200 million Starting from the financial year ended 1 January 2021, an increase of 20% in the number of staff employed in an employee relationship with a minimum of 20 employees, or 30 if registered according to the legislation: 2.5%.

• organizational subject resident in Argentina without being registered in the registry: 7.5%.

• In case of non-mediation of the intervention of a subject of the country: 10%.

• If the foreign person is not registered in the registry or is in “non-cooperative” or “low or no tax” jurisdictions: fifteen%.

Who has to pay the tax are gamblers and the betting companies or brokers who receive the bettors’ funds will act as agents retention.

“The identification and action of collection and settlement agents will be in charge of AFIP, on the basis of the lists of organizers or operators of betting and / or games of chance, drawn up by this body, which will have to update them periodically” , he has declared. the decree.