Portugal backtracks 25% tax rate
A preliminary version of the state budget included the measure to increase betting taxes to 25%.
Portugal.- The draft version of the State Budget proposal for 2019 included the government’s plans to change taxation on all types of online gambling revenue. However, the official document presented late last week did not include such percentage.
The budget presented by the government in Parliament left out the tax changes on online gambling. The Special Online Gambling Tax (IEJO) was being developed as part of the government’s plan for the next fiscal year.
The current rates are based on gross revenue but vary between 15% and 30%, depending on the annual value of gross revenue, while companies pay a tax of 8% to 16% on sports betting turnover. During the first six months of the year, the state collected €28.1 million with the IEJO, representing a 15% year-on-year increase. Gross revenues from online gambling totalled €70.2 million in the first two quarters, representing a 24% growth over the same period in 2017.
While Portuguese lawmakers will discuss the budget on October 30 and are set to vote on it on November 30, it is unclear if there is room to add the betting tax on the proposal.
