The legislation of the Russian Federation allows organizing business activities related to gambling, sweepstakes, betting, etc., providing for monetary winnings and a fee for participation in them. The gambling business, like other business activities, is subject to appropriate taxes. Entrepreneurs are advised to make this mandatory payment to the tax authorities on time and in full in order to avoid penalties, which in the case of gambling can be quite large.
Let's consider what exactly is the object of the gambling business tax, how accounting and control is carried out, how to correctly calculate the amount and make payment, and also tell you what changes have occurred in this area in 2020 and what else businessmen can expect.
Legal regulation of gambling business
The Law “On State Regulation of Activities for the Organization and Conduct of Gambling” (Federal Law No. 244, which entered into force in January 2007) is the main legal document relating to the organization of the gambling business and profit from this activity.
Gaming activities mean gambling in special institutions equipped with gaming tables and/or machines (only in specially designated gambling zones), as well as in bookmakers’ offices and sweepstakes (if licensed).
The tax on gambling business is regulated by Ch. 29 of the Tax Code of Russia, which has been in force since January 1, 2004. In accordance with the text of the Tax Code, such a business is regulated by regional legal acts, that is, local authorities have the prerogative to set the tax rate (the Tax Code of the Russian Federation does not allow benefits for this type of tax). If such a document is not adopted at the regional level, the tax will be levied according to the general requirements specified in the Tax Code.
SO! The gambling tax is a direct regional payment that goes to the budget of the territorial subject of the Russian Federation where it is introduced.
Objects of tax on gambling business in 2020
A tax payment for organizing games is levied if the following attributes of organizing this business are present:
- gaming table - special equipment that provides playing fields, places for participants and, possibly, a croupier;
- slot machine - a mechanical, electrical, electronic or other device that provides the possibility of winning money without the participation of an employee of the establishment (due to a device that generates random combinations);
- bookmaker processing center or totalizator - a branch of a gambling establishment where bets and game results are taken into account and recorded;
- betting point of a betting shop or bookmaker's office - a specially designated place for placing bets and recording information about accepted bets, results and winning amounts.
NOTE! The base for this tax is the total number of each type of gambling business facility.
What tax objects does the gambling tax provide for?
The Tax Code of the Russian Federation distinguishes the following types as objects of taxation on the gambling business:
- gaming table;
- slot machine;
- betting processing center (hereinafter referred to as PCT) and bookmaker office (hereinafter referred to as PCBk);
- bet acceptance point for a betting shop (hereinafter referred to as PST) and a bookmaker's office (hereinafter referred to as PSBk).
Let us recall that PCT, PCBk, PST and PSBk appeared in 2012, replacing the cash desks of betting shops and bookmakers.
Each such object subject to gambling tax must be registered with the Federal Tax Service at its location based on the taxpayer’s application.
The application form was approved by the Ministry of Finance of Russia by order No. 184n dated December 22, 2011. His gambling tax payer must complete and submit an application to the tax authorities 2 days before the installation of a new facility. In the application for registration of an object for gambling tax, you must indicate:
- number and date of business license or permit;
- name of the payer, as well as his tax identification number and checkpoint;
- For gaming tables, sheet A of the application is filled out, which indicates the address of their location, the number of fields and tables, as well as the total amount of the tables;
- for slot machines, data is entered into sheet B indicating the address of their installation, serial number and the total number of installed machines;
- for PCT, PCBk, PST and PSBk, information is entered into sheet B, where the type of object, location address and the total number of such objects are determined.
Moreover, if tables or machines have different location addresses or their number exceeds 15 pieces, then it is necessary to fill out several sheets A or B so that each address has its own sheet, and 16, 31, 46, etc. objects begin to be listed from new sheet. The new sheet B begins with 4, 7, 10, etc. object.
Having received the application, the Federal Tax Service within 5 days is obliged to issue the gambling tax payer an appropriate certificate, which confirms the registration of the objects specified in the application.
If the disposal of the object occurs, the organization also submits an application in the form recommended by the Federal Tax Service to the tax office at the place of registration. The specified application consists of sheets A, B and C, as when registering, however, in this form, on the first sheet there is already a link to the certificate justifying the registration of the gambling business object, and the sheets themselves record the retired objects. Such an application must also be submitted 2 days before the planned changes.
Registration of taxable objects
The law requires that any of the listed attributes be registered with the tax authorities no later than 2 days prior to its installation. The owner must submit an application to the regional tax service, in which he must indicate the object of future taxation and its location. After consideration, he will be issued a certificate of registration for this object. The date of registration (and therefore the beginning of the tax period) will be considered the number stamped on the registration application.
IMPORTANT! If an entrepreneur has purchased a new attribute for organizing games or any equipment has become out of order or a certain point has been removed from operation, the tax office must be informed about these changes within the same time frame.
Application forms and registration certificates were adopted by the Ministry of Finance of Russia in accordance with Order No. 184n dated December 22, 2011.
Rates and amounts
The Tax Code sets the minimum and maximum bet sizes for each type of gaming object. Regional authorities have the right to choose any figure within these boundaries. If a given subject of the Russian Federation has not adopted a law regulating the tax rate for the gambling business, then the minimum rate specified in the Tax Code of the Russian Federation is applied. Here are the amounts an entrepreneur should expect:
- for a gambling table - from 25 thousand to 125 thousand rubles;
- for a slot machine – from 1.5 thousand to 2.5 thousand rubles;
- for a processing betting or bookmaker center - from 25 thousand to 125 thousand rubles;
- for a betting point - from 5 thousand to 7 thousand rubles.
Purpose and specifics of the gambling tax
Gambling business is a special type of entrepreneurial activity.
It is intended to earn money through the creation of gambling establishments, where different games, sweepstakes are used, or various types of bets are conducted. Even with numerous restrictions from legislation, such a business is in demand and developing, since there is a high demand for it from individuals.
Important! The main document registering this activity is the law “On the activities of gambling establishments”.
The tax is paid by institutions engaged in work in the gaming business. This includes companies that install various gaming tables, as well as those that are betting points or use slot machines. An indispensable condition for working in this direction is obtaining a license.
How to open an online casino? Step-by-step instructions can be found here.
Characteristics of tax, its objects and essence
The object of the tax is the units used to account for various objects. These include:
- numerous gambling tables;
- machine guns;
- places intended for accepting bets from betting shops or bookmakers.
Tax rates vary from 1.5 thousand rubles. up to 25 thousand rubles, and the choice of a specific rate depends on the existing object of taxation.
The amount of such a tax is considered quite significant, and this is due to the fact that companies operating in the gaming sector have the opportunity to receive truly significant income.
The essence and nuances of paying the gambling tax are described in detail in this video:
Who is the payer?
Before calculating this tax, you should decide who exactly should pay it. The following may act as taxpayers:
- IP;
- companies registered as legal entities.
Important! Companies whose founders are constituent entities of the country or Russia itself, as well as regional authorities, cannot act as taxpayers of the gambling tax.
Also, people who have an outstanding criminal record resulting from economic or criminal offenses that caused moderate or severe damage are not allowed to work in this line of work.
This work is not permitted for foreign companies registered not in Russia, but in other countries.
Legislative regulation
The gambling business is considered a specific area of activity, carefully regulated by the tax office. Each company that plans to operate in this direction must carefully study all the requirements for this business.
This includes:
- all companies are required to meet numerous requirements in order to be able to obtain a license to operate, and it is prohibited to offer gambling without this document, and if such a violation is detected, strict penalties will certainly be imposed on entrepreneurs;
- It is allowed to open these establishments only in special gambling zones of the country, but this does not apply to bookmakers;
- a gambling establishment is represented by a building where only work related to the organization or conduct of gambling, as well as the provision of related services, is carried out;
- the work involves the conclusion of special agreements on winnings, and they must be based on risk;
- in the hall of such an establishment there must certainly be slot machines installed in an amount of no less than 50 pieces;
- all equipment in such an institution must be working and connected to electricity, and there should be no obstacles to its intended use.
There are many other requirements for entrepreneurs working in the gambling business, so you should carefully understand all these features, since violation of the law will certainly lead to the accrual of significant fines or the use of other penalties.
How to calculate the "gaming" tax
The calculation procedure is standard: the tax base is multiplied by the rate. You must first determine the number of taxable objects for each type separately, and then multiply the results by the rate established in a given region for such gambling attributes. The amounts received are added up to form the final tax payment.
Example
An entrepreneur in the Altai Territory (in the Siberian Coin gaming zone) owns a gambling establishment with 3 gaming tables, 10 slot machines and a bookmaker's office. Since special gaming tax rates have not been established in the Altai Territory, the calculation will be made at the minimum provided for in the Tax Code of the Russian Federation.
For 3 gaming tables the tax will be 25,000 x 3 = 75,000 rubles.
For 10 slot machines – 1500 x 10 = 15,000 rubles.
For the processing center of the bookmaker’s office – 25,000 rubles.
Total: 75,000 + 15,000 + 25,000 = 115,000 rubles: this amount will be the monthly tax payment if the entrepreneur does not have any changes in the number of gaming objects.
We declare the “gaming” tax
Gambling tax reporting involves including information about it in the tax return. The payment procedure requires its monthly submission no later than the 20th of the next month. In the text of the declaration, it is necessary not only to justify the amount of tax, but also to indicate the dynamics of taxable objects, if any.
IMPORTANT! If you find errors or inaccuracies in the declaration, you need to comply with Art. 81 of the Tax Code of the Russian Federation, the procedure is to submit a revised version of the declaration to the tax authority.
Responsibility for violation of the law
In case of untimely filing of a gambling tax return, the payer must pay a fine to the budget in the amount of 30% of the tax amount indicated in the document. It should be remembered that, regardless of the tax base and the final tax amount, less than 1000 rubles. there cannot be a fine. In case of late payment, the accrual of penalties automatically begins on the 21st, the daily amount of which is three hundredth of the refinancing rate on the day of delay.
The amount of the fine can reach 40% of the declared tax. In addition to deadlines, this also applies to violations of the payment procedure. If the procedure for registering an object is violated (including any changes), the amount of the fine may amount to a triple tax rate. Repeated violation automatically increases the fine amount by 100%.
Global violations are severely punished by law:
- engaging in gambling business outside the legally established gaming zones on the territory of Russia;
- organizing gambling without obtaining a license;
- violation of the gambling business procedure.
For various types of violations, the Code of Administrative Offenses provides for fines of up to 1 million rubles, or deprivation of the right to organize gambling activities for up to 90 days. The law delegates to state supervisory and prosecutorial bodies the right to conduct inspections of the activities of legal entities in the gambling business.
Responsibility of negligent payers
The law is strict against those who do not provide the necessary payments to the budget. For late payment or late filing of a declaration, for errors in calculating the amount or arrears, serious fines are provided:
- Delay in document reporting threatens with a fine of no less than 1000 rubles, amounting to 5 to 30% of the amount for this declaration;
- a delay in paying the tax itself will “pull” a penalty for each day of delay (its amount will be 1/300 of the refinancing rate, calculated as a percentage of the amount not paid on time);
- violation of the procedure for registering gaming facilities is fraught with a threefold amount of tax on an incorrectly or lately registered business attribute, and if the violation is repeated, this amount will double;
- unpaid tax entails the most serious fine - from 20 to 40% of the total amount of arrears.
FOR YOUR INFORMATION! Fines and penalties do not relieve you from the obligation to pay arrears in full.
Procedure for paying tax and submitting a declaration
Casino owners are required to pay the tax by the 20th of the next month. The amount of payment is determined by the previously submitted declaration.
Important! There are no tax benefits.
The tax declaration for casinos, TOTO and bookmakers is submitted monthly no later than the 20th day of the month following the paid tax period. The document reflects all data on changes in the number of objects, if this occurred within the declared period.
The declaration is submitted to the tax authorities at the place of registration of the establishment. The form was approved by order of the Federal Tax Service No. ММВ-7-3/985 dated December 28, 2011. The business organizer has the right to provide the document in person or through a legal representative, by Russian Post by mail with an inventory or in electronic form.
If errors or inaccuracies are found in the declaration, the entrepreneur provides an updated document before the payment deadline.
If a taxpayer is late in filing a return, he or she is subject to a fine of 5–30% of the debt. Late payment is subject to a penalty of 1/300 of the refinancing rate or tax for each day overdue. The most serious fine is imposed for non-payment of tax - 20–40% of its amount. At the same time, fines and penalties do not relieve the taxpayer from the obligation to repay all arrears in full.
Innovations for 2020
There are currently no global changes to this type of tax. Only the procedure for calculating penalties has been revised - after October 1, 2020, the rule applies: the longer the delay, the greater the penalty (clause 4 of Article 75 of the Tax Code of the Russian Federation).
There is a project of the Ministry of Finance of the Russian Federation, which provides for a gigantic increase in tax rates for the gambling business (almost 100 times for online offices and twice for other gaming facilities), however, such a radical change, which could greatly affect the economy of gaming zones, has not yet been adopted today.
