Portuguese government considers 25% tax rate
The government is analysing the introduction of a 25% tax rate for online gambling operators.
Portugal.- According to a draft version of the State Budget proposal for 2019, the Portuguese government is interested in changing taxation on all types of online gambling revenue. The Special Online Gambling Tax (IEJO) would have a flat rate of 25% and would focus on gross revenue of operators in all segments.
The documents obtained by Portugal’s Jornal de Negocios show that the new IEJO is being developed as part of the government’s plan for the budget of fiscal 2019. The current rates are already 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.
Where there are currently no licensed horse betting operators in Portugal, it is expected that this segment will be developed in the first quarter of 2019. Horse racing currently features a rate of 15% to 30% in the mutual horse racing bets.
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.
