COLOMBIA – Government boosts gaming industry growth
All gaming contracts awarded to operators will be prohibited from any additional tax
Last month the Colombian Congress approved the 5-year 2018-2022 National Development Plan, which was presented by President Ivan Duque’s Government, detailing in articles 60, 61, 62 and 63, normative and tax changes relative to taxation for Colombia’s gaming industry.
Article 60 contains a provision that supports lotteries run by Colombia’s Departamentos(States), as the most viable form of profitability with investment through the territorial entities and supported by the country’s National Gaming and Lotteries Council –Consejo Nacional de Juegos de Suerte y Azar
Article 61 has changed the basis for the calculation of gaming tax to be paid by casinos and slots operations, which will be 12% on Gross Gaming Revenue – Gross income less the amount of the prizes paid on all gaming machines authorized by the regulators. For bingos, gross income is the total value of the cards sold.
One of the most important items approved is Article 63, which guarantees that all contracts awarded to operators will be prohibited from any additional tax, levy, stamps, or municipal taxes from any district or departmental entity, different from those that must be paid to the state according to the title awarded by the regulators gaming exploitation rights.
Colombia’s gaming industry operators have referred to the changes in Art. 63 as the most important of the last decade in gaming tax history regulating this important sector in the country. This tax concession has been in response to a possible detriment in the income received annually by the health sector, which benefits from all gaming taxes generated by the state, as this means that tax revenues for the health sector will increase hand in hand with the growth and development of the gaming industry in the country.
