Peru’s Congress could triple selective consumption tax
Following the observations of the Executive, the Plenary of Congress will debate a new substitute text that modifies the original text of Bill 9645, linked to Law 31557, which regulates the operation of online games and online sports betting in Peru. The changes aim to streamline the applicable tax system, address tax gaps, and strengthen the role of regulatory bodies.
One of the key points is the authority granted to the Ministry of Economy and Finance to modify the selective consumption tax rate between 0.3% and 7%, for both gambling and remote sports betting. The cap is in accordance with the Constitutional Court’s ruling, which established a maximum limit of 20% to avoid confiscatory effects.
This means that Congress’s proposal aims to triple the current rate: from 1% to 3% immediately after the publication of the regulation.
The text maintains the objective of correcting the distortion in the payment of the selective consumption tax between resident and non-resident operators so that, from the publication of this rule, all companies —Peruvian or foreign— will become obliged to pay the tax, under a criterion of non-discrimination in taxation. Currently, in the case of foreign platforms, the Peruvian player is responsible for payment, while for local companies the obligation falls on the company itself.
The initiative also allows for bodegueros—owners of local convenience stores—to engage in the operation of online sports betting and gambling. The regulation will allow more than 500,000 convenience stores in the country to generate additional income through the operation of remote games and sports betting.
Another important adjustment is the elimination of the section concerning the manipulation of sports results, a matter that is already addressed by a previous law introduced by Congresswoman Diana Gonzales.
