Gambling business taxes in Russia: core principles and introductions

Tax rates on gambling business were changed in 2018: the minimum and maximum rate increased twice from January 1. The authorities note that these taxes have been never indexed in Russia since 2004. Therefore, the tax will be reportedly grown ten times in comparison with 2017 in the next few years.

However, before making a review of introductions, let’s recall the concept of gambling tax charges.

Type and amount of tax; its objects

A betting and gambling tax is considered to be a local fee. It means that its revenue goes into the budget of a certain region. The gambling business tax is a variety of imputed taxation.

• gambling tables (a flat tax on each one);
• slot machines (a flat tax on each one);
• processing centers of betting pools/betting shops;
• betting shops.

In 2018, tax rates on the above-mentioned items are the following: a tax on one gambling table – from 50 000 to 250 000 RUB per month; one slot machine – from 3 000 to 15 000 RUB per month; one operating processing center of a betting pool or a betting shop – from 50 000 to 250 000 RUB. Besides, one should pay from 10 000 to 14 000 RUB for every betting shop.

It is the local government of every territorial entity of the Russian Federation that determines an accurate amount of the tax rate within each limit. A minimum rate is imposed in regions where the amount is not defined statutorily.

New paragraphs in the tax list

New paragraphs appeared in the Tax Code for gambling business owners in 2018. Now, the tax is also imposed on owners of betting shops and pools accepting interactive bets. Tax rates range from 2.5 to 3 million rubles for all processing centers.

Registration and reregistration of objects

By the way, here is the note on the gambling business taxation regarding new objects for those betting operators and gambling business owners who are going to expand their activity in 2018:

1. Every taxable item (see a list in the section 1) should be registered in the local tax office at least two working days prior to the day of installation.

2. Any change in the number of items to the higher or lower side is registered as well. If you decide to establish new betting shops or equip the existing ones with new processing centers, you should inform the tax office at least two working days prior to the day of installation.

3. In 2018, Russia’s law on gambling zones keeps being effective: casinos and slot machines can be located only within specially equipped territories (see the map). Betting shops, betting pools, and lotteries are still authorized across Russia.

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