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Online Games

Peru introduces a 12% tax on online betting and expects annual income of USD 42 M

Friday 02 de February 2024 / 12:00

2 minutos de lectura

(Lima).- The betting tax in Peru is already a reality. Following the publication of the new regulations of Law No. 31557, in turn modified by Law No. 31806, the changes will be implemented soon. One of them, to which we have already referred, has to do with taxation.

Peru introduces a 12% tax on online betting and expects annual income of USD 42 M

The body in charge of managing this evolution is the Ministry of Foreign Trade and Tourism (Mincetur). Starting in April 2024, the Peruvian State will charge 12% of its net profit to registered betting houses, which will operate with a national license.

The popularity of online gambling has grown with the access to the market of betting houses such as Betano and others that entered the last year. Now, these companies already know what the betting tax is in Peru and how much they must pay according to their income.

This new rule, according to Minister Juan Carlos Mathews, will mean a collection of about S/ 162 million annually. Estimated figure based on a calculated market volume of S/ 4,500 million.

The taxation of online betting will be distributed in two ways: 25% for inspection work and 75% for tourism development. However, this decision must still be adjusted to the economic parameters that the new situation will propose.

The digital market in Latin America continues to grow and Peru wants to be part of the development. Without a doubt, decisions such as the new regulations on online betting favor its structure and the safety of consumers on the Internet.

Along these lines, betting houses that wish to penetrate the Peruvian market must submit the authorization request between February 10 and March 10. 30 days to obtain the operating license and begin paying taxes the following month.

And until now, companies operated with international licenses. The taxation of the sector will be managed by the government, making Peru the third Latin American country to create a special tax on the sector, after Colombia and Argentina.

Betting grew during the pandemic and, since then, government entities have worked to regulate it. The law has not only focused on taxation, but has also looked at other spaces such as advertising or promotions.

For example, advertising will be restricted at times and warnings about the game must be displayed to the audience. Furthermore, bonuses will not be allowed to be exchanged for money, but the welcome bonuses must be linked to the corresponding payment per winning play.

Another notable measure is the prohibition of cryptocurrencies in user payments. Payment methods are limited to credit and debit cards, transfer, cash or digital wallets. As for betting, they must be exclusive to sports, with the political, cultural or economic sphere being prohibited.

Companies and consumers will have to get used to all these regulations that govern the new law. Without a doubt, 2024 will be a year of changes in Peru.

Categoría:Online Games

Tags: Sin tags

País: Peru

Región: South America

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