Isc to Remote Gambling and Remote Sports Betting

Substantial part: 

1. Introduction: a brief overview

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.

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)

Games of chance and bets (subparagraph c) of Article 50 of the Value Added Tax Law).

In the case of remote games of chance and remote sports betting developed in technological platforms operated by legal entities incorporated abroad, the game of chance or bet is understood to be performed or consumed in the country if the player has his habitual residence in the country. The habitual residence of the player is understood to be located in the country when any of the following events occur:

1. The Internet Protocol (IP) address or other means of geolocation assigned to the gaming medium through which the wager is placed, corresponds to Peru.

2. The country code of the subscriber identity module (SIM) card, physical or electronic, or other technology that replaces it, of the mobile terminal equipment through which the wager is placed, corresponds to Peru.

3. The credit or debit cards or any support for the use of electronic money, digital wallets or any other product, with which the player makes the deposit of money in his gaming account, are provided by the companies of the Peruvian financial system.

4. The domicile that the player registers in the technological platform of remote gaming and/or remote sports betting is located in Peru.

Who are the taxpayers?

• The organizing entities and holders of gaming and betting authorizations, referred to in subparagraph c) of Article 50 of the IGV Law.

• Players, in the case of remote games and remote sports betting developed in technological platforms operated by legal entities incorporated abroad, holders of an authorization granted by the competent authority (subparagraph e) of Article 53 of the IGV Law).

Taxable income: How is it calculated?

The value of each wager, in the case of remote gaming and remote sports betting. For such purpose, a wager is understood as any money or bonus valued in money applied in the remote game or remote sports betting.

Rate: What percentage is applied?

Remote games............................................ 1%

Remote sports betting………....................... 1%

Forms of collection

a) Main Mechanism:

3) Through legal entities incorporated in the country.

The filing and payment of the Selective Consumption Tax payable by the subjects referred to in Article 53, except importers and players who are subject to the Tax, as well as Article 57 of this provision, is determined in accordance with the rules of the Tax Code.

SUNAT establishes the places, conditions, requirements, information and formalities concerning the filing and payment.

4) Through legal entities incorporated abroad.

The legal entity incorporated abroad acts as the agent for the collection of the tax payable by the player.

For the filing and payment of the amount received, the following applies:

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

   The option is exercised in the tax return 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 tax return filed and is maintained until December of that year.

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

   For such purposes, the conversion of bets made in local currency, in dollars or in foreign currency other than dollars, is carried out in accordance with the provisions of the regulations.

2. The time zone considered to determine the date of birth of the tax obligation, filing of filings and payment is the Peruvian official time, GMT-5.

SELECTIVE CONSUMPTION TAX 

Agent of perception constituted abroad.

Abroad

National owner (legal entity incorporated in the country)

Digital wallet, Stake: S/10,100

ISC= (Bet 10,000* 1%) =100

The agent of perception is the Holder of the foreigner.

The taxpayer is the player.

Player                                          S/ 10,100              Debit, Credit o prepago, yape o plin

ISC= S/ 100

(IMAGEN EN ELABORACIÓN)

Exemption from keeping books, records and vouchers.

Legal entities incorporated abroad (ISC collection agents) 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 gamblers.

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 to register in the RUC and, if applicable, to become a SUNAT Operaciones en Línea user.

• Domestic 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 MINCETUR's authorization.

3. Enter the company'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 the contact person, as well as attach in PDF format their corresponding identity documents. 

5. Then the indicated e-mail will be validated, to which a code will be sent that must be typed in the registration web page. 

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