Netherlands settles on 20% egaming tax rate

The Dutch Council of Ministers have confirmed operators wishing to enter a regulated online market will have to pay a 20% tax on profits after its members finally settled a disagreement which was threatening to delay regulatory progress.

In a meeting held today (Friday), the final day before parliamentary summer recess, the country’s ruling coalition settled a dispute which saw the Social Democratic party pushing for a tax rate of 29%, comparative to the rate paid by the land-based industry.

However, it appears a consensus has been reached whereby operators will pay an initial 20% levy on gross gaming revenues plus an additional contribution of between 0.5% and 1.5% towards a fund aimed at preventing gambling addiction.

In addition, Ministers also announced that the compulsory rate of charity contributions from lotteries is to be reduced from 50% to 40% in order to give operators greater opportunity for “innovation”.

The news comes after a trio of lotteries wrote to the government earlier this year to request a reduction in the 50%, a level much higher than the 16% paid by the Dutch State Lottery.

Following the today’s developments, the Gambling Bill will be passed to the parliamentary house where it is expected to complete its progress and be passed into law in time for a 2015 go-live date.