Argentina Set To Impose Higher Tax On Gaming

Despite the fact that the sector is not limited at the federal level, Argentina’s national government has elected to impose a higher rate of tax on online gaming for the coming year.

The city and province of Buenos Aires are the two most populous jurisdictions in the process of debuting their markets, although there are other areas that still have no legislation in place.

In next year’s draught budget, Minister of Finance Martín Guzmán ‘s proposal, which raises taxes on online gambling from 2 percent to 5 percent, was included. The plan estimates that 95 percent of the revenue will be allocated between provinces, while 5 percent will be invested by Arsat, the Argentine state telecommunications corporation, in technical developments.

The sector generates about $2.4 billion annually in Argentina, according to Política Online, but because industry is still not fully controlled, contributions to the state are practically non-existent. They predict, however, that if they legalise and control online gambling, each province will benefit.

The value of each bet and game of chance is added to the tax, which was enforced by a 2016 law. Furthermore, for businesses operating from “non-cooperating or low-no taxation” countries or tax havens, it increases to 10 percent.

The government will “check bank and billing data “according to the 2021 budget and will recognise online bets  “when it’s detected in a mobile phone code on a SIM card or in the IP address of the electronic device of the service recipient”.

By monitoring the operation, Arsat will cooperate and bring in more gross revenue data, allowing the country to “get more resources for state coffers.”