IMGL Magazine November 2022

Emerging markets & culture

monthly and applies equally to legal persons constituted in Peru and the branches of legal entities constituted abroad for both remote games and remote sports betting. 22. To determine the taxable base, gross monthly income will be the total amount of bets received in the month through the money or monetary value of bonuses and other concepts paid by the players in favor of the platform. Monthly net income is equal to the difference between the gross monthly income received in a month and the total amount of returns and prizes paid out in the same month. The tax base is constituted by the monthly net income minus the maintenance expenses of the platform (2%). 23. The tax base is determined independently by each platform according to the accounting information recorded in the database of the platforms’ servers. The taxable rate is 12% and will be administered by SUNAT. 24. The tax paid by platforms domiciled in the country constitutes a deductible expense for the purposes of determining Income Tax. 25. Finally, the supplementary provisions contain the following points of interest: 25.1 The law will come into force sixty days after the date of publication in the Official Gazette El Peruano of the Supreme Decree approving its Regulations. 25.2 By Supreme Decree, MINCETUR shall regulate the law within a period that must not exceed 120 business days from the date of publication of the law in El Peruano. 25.3 Municipalities may grant operating licenses only to holders of platform operating authorizations or to holders of remote sports betting game rooms granted by MINCETUR.

Law on General Sales Tax and Selective Consumption Tax incorporating as subjects the holders of an authorization for the exploitation of technological platforms of remote games or remote sports betting granted by the competent authority, among other additions such as the creation of the tax obligation, the systems of application of the tax, the concepts included in the tax base, etc. 27. We will need to wait for the regulations that will clarify most of the inconsistences in the law. CONCLUSIONS International operators already active in Peru and who wish to continue operating in the country should already be approaching the requirements that the law establishes. The law is now clear enough as to the consequences for operators not having the authorizations and respective licenses, for example, the blocking of web pages. Although the law has not yet fully entered into force because it needs the regulation, the government can publish it at any moment and this should be anticipated by international operators who will require time to set up companies, grant powers of attorney, apply for authorizations, licenses, certifications, etc., work that requires planning. The law is positive in that it allows operators to formalize and work within a regulatory framework that will provide legal security. There are some inconsistencies, particularly in connection with tax. In this case, the law has contemplated the taxpayers for the payment of taxes only to companies that operate within the country and to branches of foreign companies but has not referred to offshore companies. This will no doubt be corrected so that all operators compete on an equal basis.

Jaime Varela Vidal is the founder Varela Vidal Abogados in Lima, Peru. +51 980594263 jvarela@varelavidaI.com

26. The amending complementary provisions incorporate changes in the

58 • IMGL Magazine • November 2022

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