Foreign Operators to Pay 12% Tax in New Peru Gaming Laws
LISTEN TO THIS ARTICLE:The President of Peru, Dina Boluarte, has signed the latest amendments to the country’s new gaming regulations.
The new amendments, tagged Law No 31,806, sought to address the various loopholes in the initial legislation, which inadvertently granted foreign operators exemption from paying tax.
Under the new law, license costs will be increased to Sol2.97 million, or 3% of the net income, if higher than the predetermined fee. This represents a threefold increase from the previous license fee of Sol990,000 ($814,000). Operators will also be required to pay a monthly tax of 12% of their revenues.
Additionally, the law mandates all online gambling businesses operating within the country to utilize a Peruvian domain address (.bet.pe/ .bet/ .com/ .pe/.com.pe), establishing a point-of-consumption system.
Going forward, any betting company looking to sponsor teams or events in Peru will need a license.
The legislation also expands the nation’s approved sports betting markets to include the sporting events of national or international sports associations, federations, or leagues.
Initial Peru iGaming Law
Online gaming and sports betting were legalized in Peru in August 2022 through Law No 31,557, signed by former Pedro Castillo.
The law named the Ministry of Foreign Trade and Tourism of Peru (Mincetur) as the country’s official gambling regulator, giving it the power to monitor all gambling activities in the jurisdiction.
It also required operators to pay a monthly tax rate of 12% of the total tax base (net income minus maintenance costs). The tax laws generated criticism from the country’s gambling trade body La Sociedad Nacional de Juegos de Azar (Sonaja).
The trade body noted that there was no provision for online gambling businesses operating out of Peru, which automatically exempted them from the 12% monthly tax.
Yet, the market since it launched has witnessed an incursion of several international gaming operators, including Betsson-owned Inkabet and Bet365.
Domestic operators like Te Apuesto and Betara are also popular amongst local bettors in the country.
The new regulations will be implemented 20 days after publication in the government gazette, specifically on July 18.
More Regulation News
RELATED TOPICS: Regulation
Latest News
Responsible Gambling
Parlays, Pressure, and Addiction - The Risks of Modern Sports Betting
Dec 20, 2024Most Read
Must Read
Interviews
When Helping Others Is a Life-Long Mission - An Interview with Gordon Moody CEO, Monica Shafaq
Dec 17, 2024
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Foreign Operators to Pay 12% Tax in New Peru Gaming Laws