The Argentine Minister of Finance, Martín Guzmán, incorporated several modifications to the budget that must be approved by Congress, among which it is emphasized that the tax on online betting will go from 2% to 5%.
The National Communications Agency (Enacom) will have to supervise online betting together with the telephone companies. The volume of bets is estimated at US $ 2.4 billion, but as most companies still operate clandestinely, due to lack of regulation, the State receives very little.
According to the plan stipulated by the Minister, 95% of the amount collected by the Government with this tax will be shared with the provinces. This was one of the 40 changes implemented in the Budget Committee of the Chamber of Deputies.
New taxation of online betting in Argentina
Although Guzmán promised to send a tax reform soon, in the budget he anticipated a change in the tax on gambling, which is governed by a law passed in 2016 and according to the bill will pay more and will be taxed, additionally, when carried out through mobile applications.
The rate increases from 2% to 5% “on the gross amount of each bet”, and will increase by 10% for bets involving a subject or company based in a tax haven, called a “non-cooperative or low or no tax country” in tax jargon. .
In addition, 5% of the proceeds will go to the Argentine Company of Satellite Solutions Sociedad Anónima (ARSAT) and 95% according to the parameters of co-participation, which distributes the majority among the provinces according to the rates established in 1988.
The estimated volume of online betting in Argentina is US $ 2.4 billion annually, but most do not pay because they camouflage themselves with local agents who charge and pay using prepaid cards, virtual wallets, digital transfers or credit cards. other consumption.
Inspection in Argentina
The elaboration of the norm sought to extend the tax to any type of digital platform, regardless of its “download, visualization or use device, even those carried out over the Internet or any application of the protocols, through which equivalent services are provided which, by their nature , are basically automated ”.
And there will be strong control over telephone companies and internet providers, not only from AFIP, but also from Enacom, which is in charge of regulating the telecommunications service.
In addition, an Online Control Registry of the Games System will be created to supervise, with the collaboration of the National Directorate of Internet Domain Registration. From now on, Arsat must also assist in monitoring.