Dominican Republic Revises Lottery Taxes as Anti-Crisis Plan Advances

Moreover, in its draft form, the Dominican Republic Senate has made some changes to the “Anti-Crisis Plan“, an economic initiative, whose total budget should be about DOP 40-50 billion.

This program was introduced back in early June and consists of some tax amnesty initiatives, cancellation of advance tax payments, and fiscal reform to improve the country’s finances. Nevertheless, before its further examination in Congress, some changes were made to some of the provisions concerning the country’s gambling activities.

These changes were introduced with the participation of Senator Pedro Catrain, who participates in the work of the bicameral committee, which reviews the proposal. According to him, the changes concern the reduction of the initial taxation burden in connection with the activity of the gambling sphere and will allow the authorities to keep the goal of increasing fiscal revenue.

Proposed Taxation System for Lottery and Betting Winnings

Firstly, according to the amended bill, the planned 25% tax on lottery, lottery agency, sports betting shops, and other gambling winnings will now be paid only for amounts above DOP 600,000.

As can be seen, these are serious amendments to the previous version of the bill since the executive originally expected a flat taxation rate of 25%, and the lawmakers argue that such a graduated system would help achieve a better balance between the two interests mentioned above.

Also, winnings between DOP 200,000 and DOP 600,000 will be taxed at 15%. Therefore, all winnings below DOP 200,000 will not be taxed.

Annually Fixed Tax on Lotteries Is Lowered

Secondly, the amount of annually payable fixed tax on lottery agencies was lowered as well. Namely, the proposed annual tax of DOP 120,000 for each agency was reduced to DOP 85,000 per location.

After obtaining the support of the bicameral commission and obtaining the status of urgency, the Anti-Crisis plan will go through all further stages of its consideration. It will also become an integral part of the government’s efforts to optimize the tax system and receive additional funds for economic programs.

Proposed Restructuring of the National Lottery

In addition to the Anti-Crisis Plan, another initiative was introduced, which may also become an important step in regulating the gambling activities in the country.

Namely, Senator Pedro Tineo introduced the project, according to which the National Lottery would become a decentralized public organization with independent finance and management. If adopted, this institution will become the main regulator of the gambling industry, controlling lottery agencies, sports betting providers, casinos, and electronic gambling, among others.

At the moment, some of the duties of regulation and supervision of the activity in the gambling sector fall on the shoulders of the Directorate of Casinos and Games of Chance (DCJA) of the Ministry of Finance and Economy.

Source: SBC Noticias

Dominican Republic Revises Lottery Taxes as Anti-Crisis Plan Advances

Proposed Taxation System for Lottery and Betting Winnings

Annually Fixed Tax on Lotteries Is Lowered

Proposed Restructuring of the National Lottery

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