Nov 16, 2017 Corporate tax in South Africa is set at a flat rate of 28% for all companies. Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone. Software Testing and Online Gambling Any machine or device which needs calibration or certification must be tested by a licensed testing agent. Economic recession in South Africa has helped to fuel a rise in the number of illegal gambling operators in the country. Although the casino industry succeeded in growing its gambling revenue by 3.5 percent in the year to March 2018, that increase was still below the level of consumer inflation, so in real terms it. Corporate tax in South Africa is set at a flat rate of 28% for all companies. Although a withholding tax on winnings has been proposed since 2011, nothing has been set in stone. Software Testing and Online Gambling Any machine or device which needs calibration or certification must be tested by a licensed testing agent.

NGB Goes Up Against Online Casinos &Cryptocurrency

In South Africa, online casinos are still causing the National Gambling Board headaches, and emerging crypto-currencies are just adding fuel to the fire says Caroline Kongwa. Kongwa is the NGB Accounting Authority, and she made this statement over the course of a two-day conference in Pretoria, Gauteng, over the 18th and 19th of July.

According to the Minister the proposed gambling tax would assist in discouraging excessive gambling in South Africa. In the 2013 Budget Speech, it was announced that a national tax based on gross gambling revenue of casinos would be introduced at a rate of 1 per cent in addition to the provincial rates.

Winnings Confiscated

The issue hasseen the NGB and South African Police Service raiding illegal online casinos,with the Department of Trade and Industry confiscating R1.25 million worth ofwinnings in 2017. The board has revealed that illegal online activities areeroding revenue generated by the legal betting industry. It noted thatoperators are creating games that compete with what has traditionally beenoffered, and this has had a detrimental impact on formal betting.

Kongwa statedthat this impacts the government’s tax revenue ultimately, which then resultsin a loss of employment opportunities, a decrease in local economic activity,and consumer rights and protections being eroded.

International Operators are Problematic

Online gambling includes Poker games, traditional casino games like Roulette and Blackjack, and sports betting, and these options have been available since 1994. Although many countries restrict online betting or ban it altogether, it has been legalised in certain Canadian provinces, the majority of the European Union, and several Caribbean nations.

Kongwarevealed that online operators continue to offer their services in South Africadespite not being strictly legal. The only lawful route for South Africans isbetting through licensed bookmakers who have the proper permits to offerwagering on sports events and horse races. Citizens are not able to gamble withunlicensed international operators.

Gambling Tax South Africa 2017 Demi

Serious Consequences for Law-Breakers

Presently,the gambling industry, except the National Lottery but including otherlotteries like society lotteries, promotional competitions and sports pools, isunder the regulation of the NGB. It is also subject to the 2004 NationalGambling Act. Kongwa said that, in light of online gambling being illegal inSouth Africa, operators face severe consequences if they’re caught offeringunlawful games, and gamblers could see their winnings being confiscatedentirely.

Gambling Tax South Africa 2017 2018

Kongwa went on to say the gamblers could also face prosecution for taking part in illegal activities. She went on to say that the Department of Trade and Industry took the National Gambling Amendment Bill to parliament in 2018, and this recommended no new forms of betting be allowed. It also included several improved provisions regarding legislation to deal properly with illegal gambling.

Personal Income Tax South Africa

The proposedbill suggested provisions should be included which forbid illegal winnings,along with amendments to ban Internet service providers, banks, and otherpayment facilitators from smoothing the way for unlawful activities to occur.This bill would also cover the transferal, payment, and promotion of payment ofillegal winnings to South Africans.

Gambling Tax South Africa 2017 Full Video

Thisprohibition will require extreme vigilance by the NGB in terms of alertingvarious institutions to illegal operations. If this notification fails to beimplemented, the affected body or institution will be criminally liable interms of the Act, and any winnings could be added to the Unlawful WinningsTrust.