Posted 2/9/11 : Controversial turnover tax dropped – tax to be levied on net income.
The Spanish Government has apparently taken note of recommendations regarding the regulation of online gambling made by the online sector, consumer associations, gaming firms and other stakeholders and has revised the draft gaming bill to be submitted to Parliament according to a statement from trade association AEDAPI.
After consultation on the proposed bill, the Government has reconsidered the controversial turnover tax and has proposed a fixed tax rate of 25 percent on net income on betting, with the exception of horse race betting and pari-mutuel betting.
The revised tax format has been welcomed by industry organisations such as AEDAPI, EGBA and RGA but concerns have been voiced that the proposed rate is one of the highest in Europe in comparison to markets such as the UK where the tax rate is set at 15 percent of net income.