Association: Gambling is a type of entertainment, not a source of income – in Latvia

The Latvian Association of Gambling Professionals (LSBA) believes that the legislature should repeal the summary procedure of the personal income tax, or address it primarily to a specific target audience that is, those seeking to use the regulatory framework for illegal activities. In this way, the regulatory framework should not be a significant burden for bona fide gamblers.

Consider that income gains are inherently inappropriate because gambling is a form of entertainment rather than a source of income. The LSBA hopes that in the near future, it will be possible to find a solution to the problem of applying the PIT for earnings concisely. For example, one of the options to be evaluated is to create the possibility that a tax on earnings will be paid globally if the amount of earnings (excluding earnings paid by the organizer and already retained) exceeds 14 400 euros, applying the tax the first euro. Such a solution for players in good faith, as part of an increase in the amount not taxable, would play into the amount beyond which the tax would be paid based on its probable economic value.

The Ministry of Finance presented on June 11 games of chance and lotteries (including lotteries) from 3,000 euros to 7,200 euros and apply a personal income tax rate of 23%. At the same time, FM makes the following changes to the law on the improvement of the regulatory base of the register of dependent players.

LSBA has previously pointed out that the increase in the non-taxable amount due to the IRP is a step in the right direction. At the same time, the LSBA continues to emphasize that the winning game in the context of the qualitative sustainability of tax regulation is, by its economic nature, a critical appraisal as a taxable element of the income tax of its members. individuals. in order to balance the initial regulation and make the tax administration more efficient, while expressing hope and encouragement, to continue to badyze the tax implications with the l & # 39; industry in order to make the regulatory framework sustainable and proportionate.