SÁB 20 DE ABRIL DE 2024 - 06:06hs.
From 2% to 5%

Deputies Chamber approves online gambling tax increase in Argentina

With the support of the ruling party and minority blocks of the opposition, Argentina’s Chamber of Deputies gave half a sanction to the 2021 Budget project, which includes an increase in the tax on online gambling from 2% to 5%. After a session of more than 18 hours of debate, the text was sent to the Senate, where it would have the necessary votes to be approved definitively. The tax will be reduced by 50% for firms with 'genuine investments in the country linked to the sector.'

Within the series of measures incorporated by the budget that affects different economic sectors of the country, it was also included the reform of the gambling law, which establishes that the online modality will pay a 5% tribute on any bet made through digital systems. 

These reforms did not change during the Deputies' treatment, and will now be analyzed by the Senate for final approval. Although the gambling tax has risen from 2% to 5%, it will be reduced by 50% for companies with "genuine investments in the country linked to the sector." 

To compensate, there will be an increase in the rate to 10% for companies based abroad and will climb to 15% if they also have an operating base in a so-called tax haven. In the original text, only the latter were going to pay 10%. 

In order to determine the origin of these activities, the Fiscal Administration of Public Revenues (AFIP) will have help from the National Communications Agency (Enacom) and Arsat to track the domains and supervise the payment of taxes. The latter body will keep 5% of the tax collection, and the remaining 95% will be shared with the country's provinces.

Source: GMB