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The Argentine Government Raised Indirect Taxes on Online Gaming

June 8, 2022 | Government

ARGENTINA (June 7, 2022) — The Government increased the rate of the indirect tax on  online betting  from 2% in force until now  to a range that goes from 2.5% to 15% , depending on the condition of the organizing or exploiting subject.

Through Decree 293/2022 published in the Official Gazette on June 2, 2022 (“Decree”), the tax on online betting and games of chance (“Tax”) was regulated, establishing the following rates:

Online betting and games of chance organized/operated by residents of Argentina registered in the “Registro de Control Online del Sistema de Apuestas” (“RCOSA”): 5%.

Online betting and games of chance organized/operated by residents of Argentina registered in the RCOSA and who comply with the investments and hiring of employees provided for in the Decree: 2.5%.

Online betting and games of chance organized/exploited by residents of Argentina who, having to be registered with the RCOSA, had not complied with said registration: 7.5%.

Online betting and games of chance organized/operated by foreign residents who (i) comply with the regulations regarding registration in the RCOSA; and (ii) are not in “non-cooperative” jurisdictions in the exchange of tax information with Argentina or “with low or no taxation”: 10%.

Online betting and games of chance organized/operated by foreign residents that (i) do not comply with the regulations regarding registration with the RCOSA; or (ii) are in “non-cooperative” jurisdictions in the exchange of tax information with Argentina or “with low or no taxation”: 15%.

The Decree provides the following:

Passive Subject: It is the person who makes the bet.

Tax Collection Agent: The tax is entered through the collection that will be made by the following responsible parties, as the case may be:

  • Online betting and games of chance organized/operated by residents of Argentina: The collection agent is the operator/licensee of the betting and/or games of chance activity.
  • Online bets and games of chance organized/operated by foreign residents: The collection agent is the intermediary residing in the country that enables the payment of each bet and/or game of chance.

Aliquots

  • Online betting and games of chance organized/exploited by residents of Argentina registered with the RCOSA: 5%.
  • Online betting and games of chance organized/operated by residents of Argentina registered in the RCOSA and who comply with (i) investments from the year ended January 1, 2021 for an amount greater than $200,000,000; and (ii) that have hired at least 20 employees (30 employees in the case of employers who register after June 2, 2022) and commit to increase the number of employees by 20%: 2.5%.
  • Online betting and games of chance organized/exploited by residents of Argentina who, having to be registered with the RCOSA, had not complied with said registration: 7.5%.
  • Online betting and games of chance organized/operated by foreign residents who (i) comply with the regulations regarding registration in the RCOSA; and (ii) are not in “non-cooperative” jurisdictions in the exchange of tax information with Argentina or “with low or no taxation”: 10%.
  • Online betting and games of chance organized/operated by foreign residents that (i) do not comply with the regulations regarding registration with the RCOSA; or (ii) are in “non-cooperative” jurisdictions in the exchange of tax information with Argentina or “with low or no taxation”: 15%.

Tax Payment

  • The Federal Administration of Public Revenues (“AFIP”) will provide the form and term for the payment of the Tax.
  • In the case of online bets and games organized/operated by foreign residents, the AFIP must publish lists including the names of the foreign resident entities that organize/operate the online bets and games so that the intermediary resident in the country that makes possible the payment of each bet can receive the Tax.

SOURCE:  Decree 293/2022 Official Gazette on June 2, 2022.