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Gambling Firm Ready To Flee Czech Taxes

by Ulrika Lomas, Tax-News.com, Brussels

06 September 2012


Fortuna Entertainment Group has warned the Czech government that it will leave the country unless the new betting tax regime is scrapped.

Fortuna, the largest Central European betting operator, has announced it is actively considering shifting its Czech operations to Malta in order to benefit from a more favourable tax regime.

Fortuna is against the recent betting tax hike in the Czech Republic, arguing it is making the country uncompetitive. This new betting tax regime has been introduced by the government as part of efforts to narrow its budget deficit.

Under the new tax regime, Czech Republic-based gambling businesses are required to pay a 20% tax on gross winnings in addition to the regular 19% corporate tax. By contrast, the rate is 12% in Poland and 5.5% in Slovakia. The special Czech gambling tax has cost Fortuna Group EUR2.5m USD (3.1m) in the last year.

Fortuna's Chairman Wilf Walsh has said that the company has already registered a company in Malta and stands ready to move the company's operations there if the tax situation in the Czech Republic does not improve.

A comprehensive report in our Intelligence Report series examining the new possibilities that offshore e-commerce open up for business, and analysing the offshore jurisdictions that have led the way in offering professional e-commerce regimes for international business, with a particular focus on e-gaming, is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report6.asp
TAGS: tax | business | Malta | gambling tax | offshore | gambling | Czech Republic

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