Czech parliament lowers proposed tax rate
Government passes new proposal but final tax rate remains uncertain with second reading still to come
The tax hit for operators in the soon-to-be regulated Czech Republic market could be lower than expected after the government agreed on a proposal for a new 23% rate for sports betting.
The rate is higher than the existing 20% flat tax across all forms of gambling but lower than the original 25% the country’s Finance Ministry had targeted for a new regime which is set to enter into law at the start of next year.
According to a report in Czech business paper Hospodarske Noviny, the compromise could save major operators in the country, including Fortuna, hundreds of thousands of pounds.
However, the proposals must still pass a second reading, expected in the coming weeks, with gaming lawyer and consultant Jan Rehola telling eGaming Review it was “hard to predict” whether the revised rates or the original 25% target will prevail.
“There is still a proposal for a 25% flat rate for all types of games agreed by coalition parties,” Rehola said.
Under the new proposals, the reduction in the sports betting tax will be offset by a proposed 28% rate for gaming, including slots and lottery. The new regime will not differentiate between online and offline for taxation purposes.
The new regulation, which was announced last year and should enter into force in 2016, will license foreign remote operators for the first time, with the government looking to recoup some of the estimated CZK600m (£17m) in tax it loses out on each year.