Argentina raises indirect taxes on online betting

The Indirect Tax on online betting was set in December 2016 by Law 27,346, which established a rate of 2% on the gross value of each bet. At the same time, it empowered the Executive Power to increase it up to 50%, but also to decrease it or temporarily leave the tax without effect.

A few years later, within the framework of the 2021 Budget Law, the Online Control Registry of the Betting System was created, although in decree 293/2022 published this week "certain regulatory aspects were made explicit for the purposes of achieving a correct application."

Foundations of the rule

"Given the complexities of taxing online gambling and betting, a dynamic regulation is necessary that allows it to adapt to the evolution of the operations in question and the different modalities that may arise," highlighted in its recitals the decree.

For this reason, it was considered "pertinent to increase the established aliquots by the aforementioned percentage," in the case of subjects not registered in the registry.

Range of rates to apply:

• Subjects residing in Argentina and registered in the Online Control Registry of the Betting System: 5%.
   
• If these subjects prove to have a one-time invested capital of more than AR$200 million (US$ 1.65m) as of the fiscal year closed on January 1, 2021, an increase of 20% of the headcount of the personnel employed in a dependency relationship with a minimum of 20 employees, or 30 if they register based on the regulations: 2.5%.
   
• Organizing entity resident in Argentina without being registered in the registry: 7.5%.
   
• In case of not mediating the intervention of a subject of the country: 10%.
   
• If the foreign subject is not registered in the registry or is located in "non-cooperative" or "low or no tax" jurisdictions: 15%.

Source: GMB