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The Colombian government has implemented a tax on online gaming through the implementation of Decrees 0240 and 0241. The tax is in the form of a 16% consumption tax on deposits made by users into online gaming platforms.
According to the decrees, the tax is applicable to games of chance that are operated exclusively through the internet. The tax is not applicable to the winnings of players, but is applicable when players make deposits into their accounts for the purpose of engaging in online gaming.
Tax Applied to Player Deposits
According to the decrees, the tax is applicable when the user makes a deposit into his or her account for the purpose of engaging in online gaming. To this end, the tax is applicable every time the player makes a deposit into his or her betting account.
According to the decrees, the deposits are applicable regardless of the means through which the deposits are made into the betting account. The means through which the deposits are made include cash deposits, bank deposits, and even cryptoassets.
It is important to note that the tax is not applicable to the winnings of players but is applicable to the deposits made by players into their accounts for the purpose of engaging in online gaming.
Scope Includes Domestic and International Deposits
Therefore, the tax is applicable from the moment the player makes the deposits into his or her betting account. It is worth noting that the tax is applicable regardless of the source of the deposits into the betting account.
According to this decree, the tax will include all deposits made “within the national territory or from abroad”, provided that these funds are entered into a user account for participation in online games of chance.
This provision of the decree expands the tax system’s reach to include international transactions that ultimately lead to betting account activity in Colombia.
Operators Responsible for Tax Collection
Another important aspect of these decrees is defining which entities will be responsible for collecting this tax and subsequently paying it to the Colombian government.
According to this new tax system, this responsibility will fall on the operators of online gambling services, those entities that manage and run online betting services.
These operators will need to collect this 16% tax at the moment a user makes a deposit and subsequently pay it to the government as part of their tax obligations.
Compliance and Enforcement
Finally, this tax system includes provisions for compliance with this new tax regime. According to this decree, failure to comply with this new tax system will result in sanctions being imposed by relevant supervisory and control entities.
With this new tax system, Colombia further expands its regulatory and tax environment for online gambling services, which now includes new obligations for these service providers while also providing a new form of taxation for player activity in digital betting platforms.
Source: SBC Noticias
