Ireland chooses to delay taxing online casinos
It was reported this month that the Republic of Ireland will not start taxing online casinos, although a ruling from South Africa has said that the government there will begin the taxation of the online casino industry in 2009.
In the annual budget report from the Irish Government, it was said that, while tax on land-based casinos was set to rise from one per cent to two per cent, online casinos would not be taxed.
Brian Lenihan, Irish Finance Minister, said that his department wanted more time to review the online casino industry in Ireland before making any decision on whether to tax the profits from the industry. The increased taxation on land-based casinos will come into effect in 2009.
A number of online casino operators are based in the Republic of Ireland and the country has seen a steady increase in the number of casino companies operating globally from the country.
The ruling from the republic is in direct contrast to one by the South African government, who recently announced that a bill had been drafted regarding the taxation of the online casino industry. And while Irish officials say that there are no immediate plans to start taxing online casinos, authorities in South Africa have said that they will release a bill for the taxation of online casinos later this month.
A spokesperson for the government said the bill was intended to ensure all online casinos operating out of the country were run fairly and legally. The move was taken in order to prevent an increase in unregulated casinos. It is thought that the online casino bill will be under review until March 2009, at which point it will be presented to the South African government for consideration.