Posted: July 8, 2022, 7:26 a.m.
Last update: July 8, 2022, 01:14 a.m.
Argentina has officially implemented a new tax regime for online gambling. As a result, operators must be prepared to pay new indirect taxes, which could affect the benefits and bonuses players receive.
A month ago, the executive branch of the Argentine government increased the indirect tax rate on online gambling. It was first necessary to take one more step, which the Federal Administration of Public Revenue (AFIP) has just planned.
The government approved the indirect tax on online gambling in 2016. Then, in 2020, it made changes to allow the introduction of graduated rates. These are the tariffs that operators will now have to pay.
The new indirect tax entered into force with the publication of Decree 293/2022 at the beginning of June. However, General Resolution No. 5228/2022, published yesterday in the Official Gazette, establishes the mechanisms to facilitate payments.
In addition, the resolution sets the deadlines and conditions for operators domiciled in the country and intermediaries acting in place of foreign platforms to make their payments.
Operators will pay indirect tax on online gambling, based on the amount of money users deposit on their platforms. The rate is progressive, starting at 2.5% for operators domiciled in the country having made genuine investments, and reaching 15% for residents of countries with low or no taxation.
The full breakdown is as follows:
- 5% for domiciled companies that have made significant investments in the country
- 5% for domiciled companies that have not made any investments
- 5% for domiciled companies not registered in the official register of operators
- 10% for foreign operators registered in the register
- 15% for unregistered foreign operators or from zero or low tax countries
According to the legislation, national, regional and local governments will share 95% of the proceeds of the tax. The remaining 5% goes to the public telecommunications company ARSAT.
Implementation of the tax puzzle
Argentina is a huge iGaming market that has attracted over 100 platforms. The taxes will apply to operators across all platforms, with only one step remaining before full implementation.
The regulation establishes that operators and intermediaries must use “441 – Paris en ligne” as the code for the tax when submitting tax returns. In the case of foreign operators, the tax collection agent will be the financial or banking entity that acts as an intermediary between users and the platform that accepts deposits from users.
The regulation also establishes the requirements for the creation and registration of the online control register of the betting system. This database covers all licensed operators and agents and will receive quarterly updates to keep information as current as possible.
The data draws information from the National Directorate of Internet Domain Registry and the National Communications Entity. It also draws on input from gaming and betting regulators in each jurisdiction.
However, until the registry is fully operational, some game providers will receive a reduction on the fee. All tax categories are now in place, but operators in foreign countries with little or no tax will only pay 10% for now. Once the register is online, the rate will increase to 15%.