Gaming Tax

As of January 1, 2017m act no. 187/2016 Sb. on the gaming tax will come in operation as part of a complex adjustment of the gaming market. The object of the gaming tax is the operation of gaming, which occurs on the territory of the Czech Republic. In the case of Internet games, the operation needs to focus or aim on the Czech market. The tax base has been set as the sum of 8 partial tax bases according to the individual types of games (lotteries, rate betting, totalisator games, bingos, live gaming, technical games, raffles, low-stake tournaments). The sum, by which the total of the received and unreturned deposits exceeds the total of the paid winnings (IN – OUT principle) is subject to taxation. For Internet games, in which players play against one another (poker, betting game), the tax base is established in a different way < -em data-mce-fragment="1">((IN from all - OUT to all) x IN from “Czechs” / IN from all). The tax rate is differentiated according to the type of gambling, the rate of 23 % applying to all types of gambling with the exception of technical games, for which a rate of 35 % has been set. For technical games, a minimum tax of CZK 9,200 has been set per every game position. The taxable period is a calendar quarter and the tax declaration can only be submitted by means of a data message. The date for submitting the tax declaration is until the 25^th day after the end of the taxable period.