Spain in tax u-turn

The Spanish parliament will consider a draft egaming law with a tax levied on gross profits, after a controversial turnover tax was dropped by its government.

The u-turn by the ruling Socialist Workers’ Party follows objections from stakeholders and industry representative organisations such as the Remote Gambling Association (RGA), the European Gaming and Betting Association (EGBA), and the Spanish Association of Online Gamblers (AEDAPI).

A spokesperson for the RGA said: “The move to a gross profits tax is a very welcome development. We are pleased that the Spanish authorities have listened to our detailed arguments and the negative impact that a turnover tax would have had on the market.

“Whilst we will be continuing to lobby in favour of GPT during the Parliamentary process, our focus is now more on the GPT rate ““ the UK’s approach is obviously a level that we’d like to see replicated in Spain.”

As reported by eGaming Review, the country’s cabinet on Friday approved a draft egaming bill to regulate all forms of remote gambling, but it remained unclear at that stage whether the Spanish Council of Ministers had approved a tax model based on turnover or gross profit.

Once the Congress has considered the bill, it will then need to pass before the Senate and be notified to the European Commission. This is not expected to occur until June or July, at which point the statutory standstill period set aside for review of the proposed legislation will commence.

The usual three months is expected to apply in the Spanish case, in contrast to Greece, where it is understood a one-month emergency expedition clause may be invoked, due to the particularly urgent need of the Greek government for tax revenues.

“We are also in discussions with the Greek Government on tax and hope that they will similarly take note of our arguments in this area and the approach that is now being taken in Spain,” said the RGA spokesperson.