Greece turns to a more sensibe tax regime
The Greek online gambling market finally received good news this week, after being shaken by reports that the country’s government is proposing online gambling tax rate of 6 percent of turnover. This time, the government decided to revise its position and opt for a 30 percent tax on gross profits.
The reconsideration came after a number of interested parties made submissions on the initial turnover-related draft, and one of them was the Remote Gaming Association. Namely, earlier this year, RGA chief Clive Hawkswood described the original draft as "....just not viable in a highly competitive global market", adding that France made a similar move, imposing too high a tax rate, which turned out to be a mistake.
The organization, with the help of business services group KPMG, submitted an assessment to the Greek government, that “only a gross profits taxation model will provide value for consumers, a reliable source of revenue for the government and a healthy, competitive environment for the industry.”
Despite the fact that it welcomed the government’s decision to reconsider the tax rate, the RGA stated that the Greek tariff is still somewhat higher than in other European jurisdictions such as Spain, and that the organization will continue lobbying for bringing the Greek tax in line with that in other regulated European markets.
Greece passed the liberalization bill at the end of January, so now it’s time to think about regulations, licensing and taxation. As for the licensing part, the government plans to grant between 15 and 50 five-year internet gambling licenses in 2011, which has already incited interest in some big online gambling companies.