April 4, 2024
The Minister of Economy and Finance, José Arista, has announced the government’s intention to introduce a regulation to amend Law No. 31557, with the aim of regulating various aspects of the application and collection of taxes on remote sports betting and gaming. If approved by Congress, this proposal would have significant implications for online gaming and betting platforms, as well as public revenue.
It is worth noting that Law No. 31557, approved in August 2022, remained unregulated for over a year until its publication last year. However, its initial wording only taxed domestic companies, excluding online operators, which account for 70% of remote sports betting and gaming activity in Peru. This led to amendments to the law to include non-domiciled companies (foreign) and clarify the taxation process.
Impact on the Sector:
The 12% tax, applicable to the difference between monthly net income and maintenance expenses of each technological platform, will be determined and paid monthly to the Tax Authority (Sunat). This measure will affect Peruvian companies, branches of foreign companies, and foreign companies operating remote sports betting and gaming through technological platforms in the country.
In conclusion, the implementation of this new tax will mark a milestone in the regulation of online sports betting in Peru, aiming to ensure fair and equitable taxation for all companies in the sector. We will closely monitor legislative developments and their impact on the sports betting and gaming industry in the country.
