Bookmakers to pay S/114 million in taxes during 2022

With the publication of Law No. 31557 regulating betting on the internetimposing 12% on the profits of companies engaged in this activity, the question remains how much the economy will contribute to these organizations, whose boom increases when important sporting events take place.
In addition to the 12% that companies will pay, they will also pay income tax and selective consumption tax (ISC) for every bet they make.

How much will companies pay?

Ministry of Foreign Trade and Tourism (Minchetur) calculates a movement of S$4,500 million over the remainder of 2022. Of the total, 70% (SGD 3,150 million) will be delivered to players in the form of winnings. Of the rest, this will correspond to the income of bookmakers (1,350 million soles), of which 12% will be discounted, which will amount to 162 million, money that will go as taxes to the state treasury.

The amount will be higher according to Apadela

Peruvian Sports Betting Association, told Management that the calculated amounts differ because they deliver to customers not 70%, but 90%; what does taxes collected will be SGD 114 million, not SGD 162; that is, 50 million less because the income is lower.

Apadela warned of a possible drop in profitability for companies as a result of the recently published rule, as they not only have to pay users, but also incur operating expenses that consume most of their profits, the rest will have to be deducted. from income tax and the new rate tax.

with the norm According to the association, national companies will suffer the most, since the law does not apply to foreign companies.affecting competitiveness, because with all the taxes that need to be paid, they will not be able to offer anti-competition proposals.

The rule was published last Friday

Through the official newspaper El Peruano, the government passed Law No. 31557 imposing a tax of 12% bookmakers and distance sports games, which are regulated for the first time. At the same time, 40 million dollars could be collected annually for the public sector.

“For the first time, Peru is introducing a special tax on internet gaming and sports betting at a rate of 12%, which will bring the state an annual fee of about 156 million sols (about $40 million),” said President Pedro Castillo. during the ceremony at the Government Palace for the signing of the law.