Gaming tax
Definition of Terms
Gaming activities means any game played with cards, dice, equipment or any mechanical, electromechanical or electronic device or machine for money, property, checks, credit or credit card or any representative of value, including but without limiting the generality of the foregoing, bingo, wheel of fortune, baccarat, slot machine, horse race, lottery, wager or stake, any banking or percentage game or any other game or device approved by the Board.
Gaming activities does not include games played with cards in private homes or residences in which no person makes money for operating the game.
Types of Operations
The Gaming tax is charged on six types of gaming activities namely Casinos, Sports Betting, SMS Lottery, National Lottery, Slots (Route) Operations and Forty Machines Site.
GBT issues different types of licenses to different operators to conduct gaming activities in the country on yearly basis.
Filling of Returns
The modality in filing returns and collection procedures of Gaming Tax depends on the type of the operator.
For Casinos: - filing of returns for land based and internet casinos is done on weekly basis as per amendment in Finance Act, 2013.
While the rest which including Sports Betting, SMS Lotteries, National Lottery, Slot Machines/ Route Operations and Forty Machines Site the filing of returns is done on monthly basis.
|
Type |
Tax Rate & Base |
Returns |
|
Land Based Casino |
18% on Gross Gaming Revenue |
Weekly |
|
|
12% on Net Winnings |
|
|
Online/Internet Casino |
25% on Gross Gaming Revenue |
Monthly |
|
|
15% on Net Winnings |
|
|
Sports Betting |
25% on Gross Gaming Revenue |
Monthly |
|
|
10% on Net Winnings |
|
|
SMS Lottery |
25% on Gross Gaming Revenue |
Monthly |
|
|
15% on Net Winnings |
|
|
National Lottery |
20% on Gross Gaming Revenue |
Monthly |
|
|
15% on Net Winnings |
|
|
Virtual Games |
10% on Gross Gaming Revenue |
Monthly
|
|
|
15% on Net Winnings |
|
|
Slots/Routes |
100,000Tshs/machine |
Monthly |
|
Forty machine site |
25% on Gross Gaming Revenue |
Monthly |
Mode of Payment and Collections
Taxpayer does registration for payment in Revenue Gateway System (RGS) to get order form with control number. Then the taxpayer has to submit the signed order form with control number by signatory(s) to Commercial Bank for payment process.
The Commercial Bank use the signed order form submitted by Taxpayer to post payment to designated TRA Bank accounts. The threshold below five (5) Million can be posted to Commercial Banks account and above five (5) Million should be transacted through TISS to BOT Account.
|
ITEM |
GFS Code |
DESCRIPTION |
|
440 |
11440107 |
Sports Betting on Stakes (Sales) |
|
440 |
11440108 |
Sports Betting on winnings |
|
440 |
11440109 |
Slots (Route) Operation |
|
440 |
11440110 |
SMS Lotteries |
|
440 |
11440111 |
National Lotteries |
|
440 |
11440112 |
Casino on Gross Gaming Revenue (GGR) |
|
440 |
11440113 |
Casino Winnings |
|
440 |
11440114 |
Forty Machines Site |
|
440 |
11440115 |
Tax on Virtual Games -Gross Gaming Revenue |
|
440 |
11440116 |
Tax on Virtual Games-Winnings |
Stakeholders/Taxpayers in the gaming industry are directed to observe the following
>To comply and pay gaming taxes to TRA according to existing applicable rates;
>To register and obtain Taxpayer Identification Number (TIN) for those who are not registered as such.
>To fill and submit gaming tax returns to TRA Offices in the Tax Region where TIN is registered.
>To use the GFS Codes specified above when making payments of gaming tax due to TRA and in accordance with the type of gaming activity conducted by gamers
Note:
The provisions of the Tax Administration Act relating to the maintenance of documents, tax liability, collection and recovery of tax, imposition of interest, tax enforcement, objection and appeal shall apply with respect to gaming tax imposed under Gaming Tax Act, Cap. 47: