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In brief

By means of Decree 293/2022 published on the Official Gazette on 2 June 2022 (“Decree“), the Executive Branch ruled the tax on online gambling (“Tax“).


In focus

The provisions of the Decree are as follows:

  1. Taxpayer: The gambler.
  2. Collection agent of the Tax: The Tax will be collected as follows:
    • Online gambling organized/exploited by Argentine residents: The collection agent will be the Argentine operator/licensee of the online gambling operation.
    • Online gambling organized/exploited by non-Argentine residents: The collection agent will be the Argentine intermediary that facilitates the payment of the bets.
  3. Tax rates.
    • Online gambling organized/exploited by Argentine residents registered with the ROCBS: 5%.
    • Online gambling organized/exploited by Argentine residents registered with the ROCBS that comply with: (i) investments of more than ARS 200 million as from 1 January 2021; and (ii) a minimum workforce of 20 employees (30 employees for employers registered as from 2 June 2022) to be increased in a 20%: 2.5%.
    • Online gambling organized/exploited by Argentine residents that do not comply with the requirement to be registered with the ROCBS: 7.5%.
    • Online gambling organized/exploited by non-Argentine residents that: (i) comply with the rules related to the registration with the ROCBS; and (ii) are not located in “non-cooperative jurisdictions” in exchange for tax information agreements with Argentina or those “low or null taxation jurisdictions”: 10%.
    • Online gambling organized/exploited by non-Argentine residents that: (i) do not comply with the rules related to the registration with the ROCBS; or (ii) are located in “non-cooperative jurisdictions” in exchange for tax information agreements with Argentina or those in “low or null taxation jurisdictions”: 15%.
  4. Payment of the Tax.
    • The Federal Tax Administration (FTA) shall set forth the terms and conditions for the payment of the Tax.
    • For online gambling organized/exploited by non-Argentine residents, the FTA shall publish the list of the non-Argentine entities that organize/operate online gambling so that the Argentine intermediaries that facilitate the payment of the bets may collect the Tax.

To access the Spanish version click here.

Author

Martin Barreiro is experienced in various areas of tax law. He is a member of the Buenos Aires Bar Association, the American Chamber of Commerce in Argentina, the Tax Sub-Committee and the Argentine Association of Taxation Studies. His extensive list of publications include "New Argentine Social Security System" for the International Company and Commercial Law Review and "The S.R.L. in the tax planning of US investors in Argentina" for the Economic and Tax Journal.

Author

Juan Pablo Menna is a partner in the Tax Practice Group in Baker McKenzie, Buenos Aires. He is a member of the Buenos Aires Bar Association and the Argentine Association of Fiscal Studies, and was a professor in Austral University.

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