SUNAT, the National Superintendency of Customs and Tax Administration of Peru, issued its determination to the Executive Branch on gambling taxes sought by President Dina Boluarte, as part of her administration’s overhaul of Peru’s gambling laws.
Though Congress had approved the final framework of Bill-2070/2021, to impose a direct 10% tax on gross gaming revenues (GGR) across online sports and casino wagers, in September, Boluarte intervened in proceedings, demanding that a further 1% ‘excise tax’ be applied to all online gambling activities, regardless of whether businesses are licensed by MINCETUR, Peru’s Ministry of Foreign Trade and Tourism.
The measure required a technical evaluation by SUNAT to determine whether the excise tax could be applied to both foreign and domestic businesses, licensed or not.
The tax authority determined that the 1% excise tax could be applied to online gambling transactions rendered in Peru. The transaction must be undertaken by a Peruvian citizen or resident with a domiciled address. MINCETUR and the government can track transactions via the use of a Peruvian IP address, bank account, credit card, or mobile SIM card.
SUNAT’s determination will allow the government to impose the 1% excise tax on gambling businesses from 1 January 2025. Further demands by Boluarte saw MINCETUR instructed to triple licence costs to S/ 3m (€750,000) for both new and established online gambling operators.
The government’s decision to impose the additional 1% excise tax has sparked strong concerns from the online gaming sector. Gonzalo Pérez, CEO of Apuesta Total, criticised the measure via social media, stating that modifying technological platforms to comply with the rules would require re-certification in licensed laboratories and re-approval by MINCETUR.
“This process, which could take 8–12 months, raises concerns about the ISC being enforced prematurely, potentially making the tax “confiscatory” during the interim.” Pérez further emphasised the industry’s commitment to operating under strict certification standards but urged the government to adopt a pragmatic approach to ensure compliance without disrupting revenue expectations.
Similarly, Andrea Rossi, Betsson’s Commercial Director for South America, highlighted that the tax reflects a “poor understanding of the industry” and warned of its negative impact on the ability to channel players into the regulated market. He stressed the importance of recognising the broader implications for the market’s growth and stability.
As the January 2025 implementation deadline approaches, stakeholders are calling for the government to engage in a dialogue with the industry. Their hope is to balance tax revenue goals with the need to “maintain a sustainable, regulated online gaming market that supports long-term growth.”
Dingnews.com 18/12/2024