During the initial transition period, the new Selective Consumption Tax will be levied at a reduced rate.
President Dina Boularte has approved a new tax on online gambling in Peru. According to information published in the Official Gazette, the Selective Consumption Tax (ISC for the initials in Spanish) will initially apply to online gaming and sports betting at 0.3%, increasing to 1% on July 1.
The vice tax will apply to internet gaming transactions conducted in Peru by Peruvian citizens or residents. The 1% charge was scheduled to take effect immediately, but operators resisted the decision, claiming that it would take up to eight months to adjust their platforms and recertify with the national regulator Mincetur in order to pass on the extra cost to players.
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Boularte and Finance Minister José Arista Arbildo have ultimately decided to adjust the implementation to allow for a six-month transition period at the reduced rate.
However, some operators say that Peru’s new tax system will increase channelization to the regulated market by making licensed operators less appealing to players.
The Peruvian Congress has previously adopted Bill-2070/2021, which imposes a 10% tax on gross gaming revenues (GGR) from online sports betting and casino gaming.
The new tax will take effect on January 1, 2025, and the Ministry of Foreign Trade and Tourism (MINCETUR), which regulates gambling, will monitor transactions performed with a Peruvian IP address, bank account, credit card, or local SIM card.
Peru’s gambling regulatory laws have resulted in the government regulating online sports betting and casino gaming.
MINCETUR has been instructed to raise the cost of internet gaming licenses to 3 million sols (€750,000), both for new and current companies.
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