Online Gambling Faces Argentina VAT Legislation
Argentina government officials delivered a revised gambling tax regime for offshore online operators in the form of new legislations that aren’t what was expected.
The new legislation imposes a Value Added Tax. It was noted on December 8ththat the plans were in progress and the proposals would go into effect the beginning of the new year.
The plans that were quick to progress through the Argentine Congress is an extension of the national Value Added Tax (VAT) which would reach the “digital services” that are based outside of the country’s jurisdiction by the country’s citizens. The bill targets all online services that are provided by unlicensed operators or providers and who targets Argentine consumers.
The bill rapidly passed through the Senate and was signed into law by Mauricio Macri, the country’s President just two days after it passed through the Senate. Details of how much the tax will be isn’t clear, but analysts are predicting it could reach as high as 27% if not more. This is the rate that is being allocated currently to all transactions. A 41.5% tax is already being charged for corporate income which is pretty high and is seeing operators struggle.