Portugal Introduces New Online Gambling Tax

by Ulrika Lomas, Tax-News.com, Brussels

08 July 2015

Portugal's controversial new online gambling tax came into force at the end of June, prompting a number of online gaming providers to exit the country.

Under the new regime, the gross revenues of companies providing online gambling services will be subject to a 15 percent tax if their annual income is less than EUR5m (USD5.48m). In the case of companies with annual gross revenues exceeding EUR5m, the tax rate will be higher, up to a maximum of 30 percent. A 15 percent rate will apply to income from ring games exclusively among players.

Online sports betting companies will be required to pay a levy of about eight percent, and as high as 16 percent, on betting revenue.

A number of online gambling companies, including William Hill and PKR, have withdrawn from the Portuguese market on account of the new tax.