New Zealand considers 2% turnover tax on global operators
New Zealand’s government is pushing ahead with its plans to impose a new 2% point-of-consumption tax on international online gambling operators that offer services in the country.
Last week, New Zealand’s Department of Internal Affairs published its ‘Proposals to Amend the Racing Act 2003’, with the changes based on recommendations put forward by an Offshore Betting Working Group late last year.
The organisation was tasked with investigating methods and amendments that would allow the New Zealand Racing Board (NZRB) to compete with online firms that are based outside of the country but offers betting services to nationals.
Included in the proposed changes is a recommendation to impose a 2% tax on international operators on turnover generated from New Zealand punters.
The Working Group has estimated that this amendment could help the country bring in an additional NZ$10 million (€6.2 million/US$7 million) in tax revenue.
In a statement, the DIA said that the tax would be “dependent on the success of voluntary compliance and enforcement measures”, with the Working Group adding that regulators be granted “suitable powers” to oversee and manage the new tax.
New Zealand could also introduce a data fee on international companies that currently use the information from the country’s racing and sports industries free of charge.
The NZRB already has a deal in place with the Australian TAB betting business, under which a 3% turnover fee applies in each direction.
Other recommendations put forward by the Offshore Betting Working Group are proposals to lift restrictions on the NZRB taking in-play bets and offering wagers only on sports represented by National Sporting Organisations that it has a partnership with.
The DIA will make the proposed amendments available for public comment on May 27.
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