Peru considers tripling ISC on online gaming, adjusting framework
The Congress of Peru is preparing to debate a new substitute text that modifies Bill No. 9645, after the Executive Branch raised observations to the current regulatory framework for remote gaming and sports betting (Law No. 31557). The main objective is to close tax loopholes, organize competencies, and update the fiscal scheme applicable to the industry.
One of the most relevant modifications is the expansion of the range of the Selective Consumption Tax (ISC). The project authorizes the Ministry of Economy and Finance (MEF) to set the rate between 0.3% and 7%, both for online games and remote sports betting. The cap is based on the 20% limit imposed by the Constitutional Court in a 2001 ruling, to avoid charges considered confiscatory.
Additionally, the text proposes an immediate increase of the ISC: the current rate of 1% would rise to 3% from the entry into force of the regulation.
Adjustments to the regulatory framework and elimination of duplicities
The document also removes the section related to the manipulation of sports results, since this crime is already regulated in a law promoted by Congresswoman Diana Gonzales. This avoids duplicating existing provisions and keeps the project’s focus on tax and regulatory matters.
Another essential part of the proposal aims to correct the distortion in ISC payment between domiciled and foreign companies. Under the current scheme, on non-domiciled platforms, the Peruvian player assumes the tax obligation, while for local operators the responsibility falls on the company.
The new text establishes that, once the law is enacted, all companies, national or foreign, must pay the ISC directly, under a principle of neutrality and non-discrimination in taxation.
With these adjustments, Congress seeks to strengthen collection, homogenize obligations, and move towards a clearer and more balanced system for the online gaming industry in Peru.
Tags: Peru, Peru betting regulation, Peru betting taxes, Selective Consumption Tax, ISC Peru