Legislation
Colombia – Colombia changing tax for operators connected to online monitoring systems
By Phil - 9 January 2020
The Colombian Government has published a decree whereby gambling operators now connected to online monitoring systems will have to pay 12 per cent on gross income less the amount of the prizes paid.
In April the Colombian Congress approved the National Development Plan put forward by Colombia’s President Ivan Duque. The change in gaming rules will do away with the presumptive income scheme rate which means that operators currently have to pay tax even if the machines do not generate sales. The changes to the National Development Plan implies that from now on operators will pay exclusively for operating rights of 12 per cent on gross revenues as long as they meet the minimum connectivity and industry standards which Coljuegos, will have until mid-2020 to define. The new regulations took effect on January 1.
Ultimately, the initiative seeks to “broaden the base of elements (of the sector), modernize the slot parlour sector, combat illegal operation and promote the professionalisation of the gaming industry,” according to the wording of the decree.
The Federation for Casinos and Bingo Businesses (FECOLJUEGOS), welcomed the news said that it was “great news for the industry, since the efforts made in 2019 to achieve the implementation of the national development plan have been very important.” FECOLJUEGOS has been lobbying for tighter government scrutiny over illegal gambling for some time and in a statement said that its main goal now was to work alongside the board to ensure the reliability of the new online systems and their connectivity with slot machines throughout Colombia.
