Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

August 25, 2022
2022-5808

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

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more