The gambling facility may suspend operations over a new tax law in Russia.
Russia.- According to local media, Tigre de Cristal could suspend operations in Russia if a new law that requires operators to collect taxes from its clients comes into force. PrimaMedia cited interim vice-governor of Primorye Tatyana Kazantseva.
The law signed last week by Vladimir Putin, Russia’s president, those who offer gambling services are required to collect taxes on winnings that exceed US$253. This new measure will come into force in the first months of 2018.
Kazantseva said: “Recently, our only casino turned to us, to the governor, saying that they may suspend their activities altogether… not because of the recent increase in gambling tax rates… They are alarmed by the unsettled issue of taxation on wins.” The official added: “The fact is that they are not a tax agent for charging taxes, but recently they have been obliged to collect it. This is unrealistic and they are even ready to suspend their activities.”
In late October, the Ministry of Finance’s website also revealed the guidelines for its budget and taxes for 2018-2020, which established that gaming taxes are expected to double starting January 1, 2018, with further increases until 2020.
The Ministry said that gaming tax rates, which haven’t increased in 13 years, will increase 10 times by 2020 in order to increase revenue from official budgets. Land-based operators currently don’t pay any taxes on gaming revenue but they do pay flat fees for gaming tables or electronic gambling machines, whilst bookmakers pay a similar flat fee for each retail they have. The new regulations will be applied to both land-based and online gambling operators.