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August 25, 2022

Peru enacts law establishing a tax on online gaming and sports betting

  • A new 12% tax will apply to income from online gaming and sports betting conducted on digital platforms.

  • Peruvian entities may consider the tax paid as a deductible expense for income tax purposes.

On 13 August 2022, Peru enacted Law 31557 establishing rules for online gaming and sports betting that are conducted on digital platforms and introducing a new tax applicable to those business activities.

Law 31557

Law 31557 applies to Peruvian legal entities and branches of nonresident entities engaged in the business of online gaming and sports betting conducted on digital platforms.

The tax applies to the difference between the net monthly income and the digital platform’s maintenance expenses at a 12% rate. Net monthly income is calculated by deducting from the bets paid by the customers, the refunds and prizes awarded during the month. Maintenance expenses cannot be more than 2% of the net monthly income.

The law allows Peruvian entities to consider the tax paid as a deductible expense for income tax purposes.

The effective date of the 12% tax will depend on the date the regulations for the implementation of Law 31557 are published.

The regulations are expected to be issued within 120 business days of the date Law 31557 was published (13 August 2022).


For additional information with respect to this Alert, please contact the following: 

Ernst & Young Asesores S.C.R.L, Lima

Ernst & Young LLP (United States), Latin American Business Center, New York

Ernst & Young LLP (United Kingdom), Latin American Business Center, London

Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific


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