Japan plans to tax foreign casino winners
The government wants to avoid tax evasion and would put a withholding tax on money won by visitors.
Japan.- With the aim of preventing tax evasion, the Japanese government could shortly announce a decision that would affect the whole casino industry from the country: to put a tax on money won by foreigners.
According to Kyodo news agency, Japanese proposed integrated resorts would be required to record tourists purchases of gaming chips, compare them with chips redeemed for cash and impose a withholding tax on any surplus amounts.
Countries with mature casino markets, such as the US and South Korea, implemented similar systems.
The plan is to incorporate this regulation into the government’s fiscal 2020 tax reform package, and would take effect after April 2021.
In Japan, taxation of gambling profits, such as those from horse racing, is treated as temporary income, which means the money generated in activities for the purpose of profit, not in exchange for labor, services or transfer of assets.
