Gambling: Tax on deposits paid by organizers, and on winnings by players from 10 to 30 percent

A session of the FBiH Government will be held today, which will include amendments to the Draft Law on Gambling, which was mistakenly sent to the media yesterday, although the Government had not yet considered that item, writes Patria.

One of the amendments repeals Article 2. Namely, given that this law also proposes the introduction of taxation on all winnings achieved in gambling and betting, there is a real concern that the simultaneous prescription of a higher rate of the fee deducted at the very beginning of the deposit, at the player's expense, would result in a player outflow to the websites of foreign organizers, as well as organizers from RS, who do not apply the rules on deducting fees from player deposits and taxing all winnings.

Article 5 has also been repealed, as it was assessed that it is necessary to omit the proposed legal solution which stipulated that the Federal Ministry of Finance can revoke a previously issued permit at the proposal of the Federal Administration for Inspection Affairs. This is because the powers of the Federal Administration for Inspection Affairs are prescribed by the Law on Inspections in FBiH.

A new Article 39a has been added, which relates to the tax on winnings from classic games of chance. According to the amendment, the tax on winnings achieved in classic games of chance is paid at a rate of ten percent on winnings from 10 KM to 2,000 KM, at a rate of 15 percent on winnings above 2,000 KM to 8,000 KM, at a rate of 20 percent on winnings above 8,000 KM to 100,000 KM, and at a rate of 30 percent on winnings above 100,000 KM.

This tax is calculated and paid upon the payout of each taxable winning, and the calculation, deduction, and payment of the tax are carried out by the organizers. The basis for calculating the tax on monetary winnings is the monetary amount of each individual taxable winning achieved in classic games of chance, which represents the difference between the achieved winning and the amount of the player's deposit for participation in the game that resulted in the winning.

When winnings consist of goods, services, or rights, the basis for calculating the tax is the market value of the goods, services, or rights for each individually paid taxable winning, reduced by the amount of the player's deposit for participation in the specific game.

The organizer is obliged to pay the total amount of the calculated tax no later than the tenth day of the current month for the previous month into the budget of the municipalities/cities within whose territory the betting shop where the winning was achieved is located.

All organizers of betting games of chance are obliged to pay a monthly fee to the FBiH budget, no later than the tenth day of the current month for the previous month, in the amount of five percent of the base, which consists of the total amount of all player deposits.

The calculation and collection of any type of manipulation costs when receiving player deposits at betting shops and terminals are prohibited.

For player winnings achieved in games of chance organized via the internet or SMS messages, one of the amendments states, the tax on winnings is paid no later than the tenth day of the current month for the previous month into the FBiH budget.

A new provision also states that, in addition to the Tax Administration, the Federal Administration for Inspection Affairs also exercises inspection supervision over the work of organizers.