Legislation

Peru’s government establishes regulations for Selective Consumption Tax

The Executive Branch has established specific rules and guidelines regarding how the Selective Consumption Tax (ISC) will be applied to online gaming and remote sports betting. Additionally, the government published the regulation concerning the tax on the profits of online gambling.

According to a press release published on Saturday (December 14) the regulation allows companies offering these services through technological platforms to have a tax treatment similar to that of land-based casino and slot machine games, which will come into effect starting January 1, 2025.

With Supreme Decree No. 254-2024-MEF, the necessary provisions for the application of the ISC to online games and remote sports betting conducted or consumed in the country—through platforms operated by Peruvian companies or foreign companies authorized by the competent authority—have been regulated.

Among other aspects, it is determined that the obligation to pay the ISC arises when funds or bonuses valued in money are debited from the accounts generated by users for making bets. Additionally, the rules for declaration to the National Superintendence of Customs and Tax Administration (SUNAT) are established, including the exchange rate to be used for operations conducted in foreign currency.

Meanwhile through Supreme Decree No. 253-2024-MEF, the tax on online games and remote sports betting has been regulated, which is applied to the profits obtained by the companies dedicated to these sectors. This tax amounts to 12% of the taxable base of the operations of these companies, and its determination is monthly.

As a result definitions and exchange rates for the purpose of determining the taxable base of the tax are regulated, as well as the timing, form, and conditions under which foreign corporations can request compensation or reimbursement for overpayments or excess tax payments made.

The tax on online games and remote sports betting was established by Law No. 31557 in 2022, which also regulated aspects of the ISC applicable to online games and remote sports betting. In September 2024, Legislative Decree No. 1644 was approved, which complemented the regulation of both taxes to allow their application.

The regulation of the tax on online games and remote sports betting also governs the disbursement that the SUNAT must make to the entities that will receive the collected resources: the Ministry of Economy and Finance (MEF), the Ministry of Health (MINSA), the Ministry of Foreign Trade and Tourism (Mincetur), and the Peruvian Institute of Sports (IPD).