AFIP has regulated the indirect tax on online betting: terms and conditions

The Federal Revenue Administration (AFIP) has implemented the indirect tax on online betting which reaches the credits entered by the users of the platforms, through the General Resolution 5228/2022 published today in the Official Gazette.

The tax has been in force since the publication at the beginning of June of decree 293/2022, e AFIP regulations establish mechanisms to facilitate settlement.

The agency resolution provided Terms and conditions for those operators resident in the country and intermediaries which act in the event of the presence of foreign platforms and enter into pledge. Indirect tax on online betting applies on the credits entered by the users of the platforms.

The rate is progressive and starts at 2.5% for operators resident in the country who have made real investments e extends up to 15% for residents in low or no taxation countries.

According to current legislation, 95% of the proceeds are shared and the remaining 5% goes to the state-owned enterprise Argentine Satellite Solutions Company (ARSAT).

The regulation provides that operators and intermediaries, in their capacity as collection agents, must request registration with the tax for the payment of the tax, by inserting the code “441 – Betting online”. In the presence of foreign operators, the collection agent will be the financial or banking entity that acts as an intermediary between the user and the platform that enables the payment of the bet.

How are the rates

The range of rates to be applied is as follows:

• If these subjects have a capital invested for a single time greater than $ 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%.

• For persons resident in Argentina and registered in the Online Control Register of the Betting System: 5%.

• If the organizer resides 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 subject of the outside is not registered in the register or located in “non-cooperative” or “low or no tax” jurisdictions: fifteen%.

YN