Singapore’s parliament agreed to increase the tax rate to 18 per cent on the first SGD3.1bn (US$2.3bn) in GGR collected by casino operators.
Singapore.- Singapore’s parliament has finally passed the Gambling Tax Act 2022 which aims to raise the tax rate operators must pay on their income.
The previous tax rate was 15 per cent of the income of the average casino player. The latest amendment to the Casino Control Act raised that rate to 18 per cent, with a revenue threshold of up to SGD3.1bn (US$2.3bn).
Mass GGR exceeding SGD3.1bn will be taxed at 22 per cent.
Premium (or VIP) GGR is currently taxed in Singapore at a flat rate of 5 per cent. Under the new model, the first GGR of SGD2.4bn will be taxed at 8 per cent.
Premium GGR exceeding that figure will be taxed at 12 per cent.
The legislation also included a moratorium on tax increases in the country, meaning rates will remain the same until March 1, 2032.
The amendment to the bill also changes the exclusivity period for the country’s two existing integrated resort operators, Genting and Sands, as the new deal expires on 31 December 2030.
Alvin Tan Sheng Hui, Singapore’s Minister of State for Trade and Industry, recently said expansion plans of Singapore’s two integrated resorts will be delayed due to the Covid-19 pandemic.
Lawrence Wong, Singapore’s minister for finance, stated: “Trends are moving towards online gambling, but we are more concerned with the illegal space than the regulated space. If technology makes it easier for people to gamble anywhere and everywhere, then such illegal online gambling will continue to grow.
“The government continues to keep a close watch to monitor the issue of problem gambling, including problem gambling online.”