Online Sportsbook Tax Deal In Costa Rica
Published: Thursday, February 16, 2006 Online-Casinos.com
ONLINE SPORTSBOOK TAX DEAL IN COSTA RICA
Flat rate will please many operators - but still no formal online gambling
legislation
AM Costa Rica reports from the South American country this week that the
Asamblea Legislativa has agreed to a special tax deal for online gambling
enterprises in a new tax plan.
Distinct from other busnesses that will be taxed on their incomes, sportsbooks
operating on Costa Rican soil will pay a flat fee, ranging from 13 million
colons ($26,000) to 24 million colons ($48,000), depending on the number of employees.
Between 5,000 to 7,000 Costa Ricans are believed to be employed in sportbook enterprises
and many of these have studied English and computer literacy to take up emplyment
with the gambling operations and would be left jobless if these companies went
elsewhere, said the legislator proposing the tax plan.
The motion, if finalised with the tax plan, would allow sportsbook companies to
open checking accounts in Costa Rica, something they cannot now do. Typically
the betting proceeds are sent out of the country.
The proposal would index the payments to inflation and place the collection in
the hands of officials where the betting operation is located. Sportsbooks with
up to 20 employees would pay the lowest rate. Those with 21 to 60 employees would
pay 16 million colons ($32,000). Sportsbooks with 61 employees or more would pay
the highest 24 million colon rate.
