Dutch tax rate likely to change, says lawyer
Robin de Wit of DLA Piper says increase to proposed 20% rate is on the cards following a bill hearing held yesterday
The proposed 20% rate of online gaming tax for the soon-to-be regulated Dutch market is likely to be increased in order to ensure both the remote and land-based industries are taxed at the same level, according to DLA Piper gaming lawyer Robin de Wit.
De Wit spoke to eGaming Review after the Dutch House of Representatives yesterday hosted a hearing on its Remote Gambling Bill in which both the Netherlands Gaming Authority (KSA) and European Commission (EC) stressed the importance of implementing the much awaiting egaming regime without further delay in order to protect the country’s online gamblers.
As well as the KSA and EC, the hearing saw representatives from Playtech, PokerStars and other industry experts participate in a number of sessions including discussions on responsible gambling and taxation.
During the meeting, current proposals for a 20% tax on online revenues, lower than the current 29% rate for land-based operators, was met with resistance from various land-based stakeholders, which de Wit said could well lead to amendments to the final bill.
“Several parties stated that this is unlawful state aid for remote operators because they think all gaming products should be taxed equally and will cause unfair competition,” de Wit told eGR this morning.
“From this hearing and the resistance that was present, I think it’s most likely the bill will be amended and the tax differentiation as proposed will not go through,” she added.
According to de Wit, recent weeks have seen a number of politicians in the Dutch Parliament raise concerns about the differentiated tax rates, suggesting the levy should be amended to either 24% or 25% for both land-based and online operators alike.
Last week the European Amusement and Gaming Federation (EUROMAT) lodged a formal complaint with the European Commission against proposed differentiated tax rates between land-based and online operators in the Dutch Remote Gaming Bill.
The land-based gaming trade association said it would “take a stand” against the upcoming legislation which it claims violates EU law and constitutes state aid as online operators are taxed at a lower rate.