South Africa Proposes Online Tax
By Staff
In South Africa, Finance Minister Trevor Manuel has released for public comment proposed legislation that would impose a tax on online gaming, the Interactive Gambling Tax Bill.

The proposed legislation follows the African nation’s ratification of its National Gambling Amendment Bill approved by Parliament in May and would see the institution of a special ‘interactive gambling’ levy. According to The Times newspaper, the tax base would be calculated on gross gambling revenues, also known as the net input generated by an operator.

The Johannesburg-based publication revealed that the initial National Gambling Act, which this year’s bill amended, did not provide for legalised interactive gambling in South Africa. However, the revised Act allows for this form of gambling in South Africa in order to ensure regulatory oversight of interactive gambling and to prevent it from remaining in the hands of offshore jurisdictions with little or no protection for local consumers.

The Interactive Gambling Tax Bill states that any levy in respect of interactive gambling activities is to be imposed in terms of separate appropriate legislation. This is due to the fact that taxes must be passed by special procedures under Section 77 of the South African Constitution.

The Interactive Gambling Tax Bill will be tabled in Parliament during the first half of next year with comments accepted up to March 1. Those interested can read the full text of the proposed bill online at the National Treasury’s website at
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