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Legislation

Bulgaria- Bulgaria approves reduction in gambling tax

By - 9 December 2013

The Bulgarian Government has approved changes to the Gambling Act that will see a 15 per cent tax on turnover become a 20 per cent tax on profits.

Bulgarian politicians voted to approve amendments to the Gaming Act that will change the way gaming taxes are calculated with 110 votes in favour, 79 against and two abstentions. A corporate tax will now be levied introduced for bookmakers, lottery and lotto games organisers, as well as poker and online casinos.

The previous turnover tax was believed to have put operators off from applying for a Bulgarian licence.

The proposal was put forward by MPs of the Bulgarian Socialist Party (BSP) and the Movement for Rights and Freedoms (DPS), headed by the chair of the parliamentary budget committee, Yordan Tsonev.

The cost of a Bulgarian gambling licence will now involve a one off fee of BGN100,000 (€51,127) and a monthly fee of 20 per cent of the difference between best placed and payouts. The authorities want to reduce taxation on gambling activities to encourage operators to set up in the country to boost budget revenues from the business.

The number of gaming halls in Bulgaria has fallen by 33 per cent since 2008 when 2008 975 operations were in business. In 2013 that number has fallen to 653.

Angel Iribozov, the Chairman of the Bulgarian Trade Association of Manufacturers and Operators in the Gaming Industry (BTAMOGI) blames the level of tax. In 2012, gaming operations paid BGN 120.9m in taxes to the Treasury, with a year-on-year increase of 0.24 per cent.

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