1.4. Excise Tax on Remote Gaming and Remote Sports Betting

Law No. 31557, published on August 13, 2022, established the regulation of the exploitation of the activity and provided for the creation of the tax on remote gaming and remote sports betting.

Remote gaming and remote sports betting are necessarily provided through the Internet to players on a platform authorized by MINCETUR whose owners could be national or foreign companies.

For the year 2023, Law No. 31806 was published amending Law No. 31557, which establishes, among other aspects, the incorporation of a new taxpayer of the tax on remote gaming and sports betting to legal entities incorporated abroad.

Subsequently, on October 13, 2023, Supreme Decree No. 005-2023-MINCETUR was published, which develops the regulation of the administrative aspects of the activity.

Legislative Decree No. 1644 published on September 13, 2024, incorporates, among others, the tax collection mechanisms for legal entities incorporated abroad.

On November 29, 2024, Superintendence Resolution was published amending Superintendence Resolution No. 210-2004/SUNAT to regulate the registration in the Single Taxpayers Registry of non-domiciled taxpayers who are taxpayers of the remote gaming tax.

Substantial part:

What operations are taxed?

Taxes the exploitation of remote games and remote sports betting developed in technological platforms that require for their exploitation, authorization from MINCETUR. (Art 39, Law 31557)

Who are the taxpayers?

• Legal entities incorporated in Peru and branches of legal entities incorporated abroad that exploit remote gaming and/or remote sports betting developed in technological platforms.

• Legal entities incorporated abroad that operate remote games and/or remote sports betting developed on technological platforms.

            (Art 40, Law 31557 and its amendments)

Taxable income: How is it calculated?

The taxable base is calculated from the Gross Income (IB), which contains the bets received and the bonuses granted minus the prizes and refunds, resulting in the Net Income (IN), from which the maintenance expenses (2% of the IN) are deducted and the Taxable Base of the tax is obtained (Art 41, Law 31557) (Art 41, Law 31557).

Example:

MONTHLY SETTLEMENT

Tax on remote gaming and remote sports betting

Amount of wagers received                     S/ 10,000.00

Bonuses granted                                        S/   1,000.00

Gross Income                                             S/ 11,000.00= (Bets received + Bonuses)

Awards presented                                     S/ -5,000.00

Returns                                                      S/        -0.00

Net income                                               S/   6,000.00= Gross Income - (prizes awarded + returns)

Maintenance expenses                          S/ -120,00 = 2% of net income

Taxable income                                        S/ 5,880.00 = Net income - Maintenance expenses

Rate: What percentage is applied?

The tax rate is 12% of the taxable base. 

(Art 42, Law 31557)

Forms of collection

a) Main Mechanism:

1) Through legal entities incorporated in the country.

Taxpayers are obliged to submit an affidavit for the income received each month and pay the tax within the period established in the Tax Code for monthly taxes.

TAX ON REMOTE GAMING AND REMOTE SPORTS BETTING 

National taxpayer

PERU

National owner (Legal entity incorporated in the country)

S/ 705.6               S/ 10,000           

Betting value       S/ 10,000

Player                  S/ 10,000              Debit, Credit or prepaid, yape or plin (Digital wallet)

The taxpayer is a national owner.

Tax on remote gaming and betting = S/ 705.60

*IMAGEN EN DISEÑO

2) Through legal entities incorporated abroad.

In addition, the following has been established for legal entities incorporated abroad:

1. The time zone considered to determine the date of birth of the tax obligation, as well as the date of filing the tax return and payment of the Tax is the one corresponding to the Peruvian official time, GMT-5.

2. The filing and payment of the Tax may be made in local currency or in dollars of the United States of America.

   The option is exercised in the filing corresponding to the month of January and is maintained throughout the year. If the obligation to file the tax return arises after January, the option is exercised in the first declaration filed and is maintained until December of that year.

3. The filing and payment in U.S. dollars shall be made in accordance with the provisions established by SUNAT by means of a superintendence resolution.

TAX ON REMOTE GAMING AND REMOTE SPORTS BETTING

Foreign taxpayer

Abroad

National owner (Legal entity incorporated abroad)

S/ 705.6                 S/ 10,000           

Peru

Betting value         S/ 10,000

Player                    S/ 10,000              Debit, Credit or prepago, yape o plin

The taxpayer is a foreign owner.

Tax on remote gaming and betting = S/ 705.60

(IMAGEN EN DISEÑO)

Exemption from keeping books, records and vouchers.

Legal entities incorporated abroad subject to the tax on remote gaming and remote sports betting are not required to keep accounting books or other books and records required by the laws, regulations or superintendence resolutions that make up the Peruvian regulations, nor are they required to issue payment vouchers for bets placed by players and other items paid by them as indicated in subclause a) of subclause 41.1 of article 41 of the Law.

Procedural part:

Registration in the RUC: Obliged to Register

Subjects that acquire the condition of taxpayers and/or responsible for taxes administered and/or collected by SUNAT; as well as non-domiciled subjects exempted from establishing domicile in the country.

Places and means for registration in the RUC and, if applicable, to become a user of SUNAT online operations.

• National companies: SUNAT Taxpayer Service Center.

• Foreign companies (non-domiciled): Only through SUNAT Virtual (www.sunat.gob.pe).

RUC Registration Procedure for non-domiciled companies:

1. Enter the SUNAT WEB Portal: www.sunat.gob.pe

Registration Link: https://www.sunat.gob.pe/ol-ti-itpreinscripnodomic/registro

2. Enter the requested information of the non-domiciled subject and check the option “As a legal entity incorporated abroad with no branch in Peru, I perform/will perform the operation of the following platforms in Peru”.

Then check the option that corresponds according to your activity and authorization from MINCETUR.

3. Enter the compan’s data and attach a PDF document that proves its existence before the Tax Administration of the country of residence.

4. Enter the data of the legal representative of the company and of the contact person, as well as attach in PDF format their corresponding identity documents.

5. Then the e-mail address will be validated, and a code will be sent to you, which must be entered on the registration website.

6. Finally, you will be informed according to the data entered, that the company is subject to the following taxes in Peru.