⚡️ Peru 🇵🇪: Online gaming and sports betting operators will face a differentiated selective consumption tax

⚡️ Peru 🇵🇪: Online gaming and sports betting operators will face a differentiated selective consumption tax

The Selective Consumption Tax (ISC) will be introduced alongside the existing 12% tax on net revenues or net profits for gaming platforms.

➡️ Important changes: Reforms to Law 31,557, which governs the online gaming and betting sector, were announced by the Ministry of Economy and Finance in April.

➡️ Reason for the new tax: This new tax is being introduced to address "negative externalities" associated with the activities of online betting and virtual casino operators. Additionally, pressure from owners of physical casinos, who are already subject to this tax, has influenced this decision.

➡️ Exclusion from IGV: iGaming operators will NOT be subject to the general sales tax (IGV), which is planned to be applied starting from October 2024 to streaming platforms like Netflix and Spotify.

➡️ Considerations: Peru currently hosts 115 online gaming and betting platforms, with 86 of them being foreign. A key issue is how "profit" will be defined in a transnational context. There may be a conditional margin of 10% participationfor tax withholding, although this margin can vary in the market.

#news #Peru #gambling

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