A new tax regime is being proposed for lotteries and sports betting in Azerbaijan, APA reports.
This is reflected in a proposed amendment to the Tax Code.
According to the draft, it is proposed to grant lottery and sports betting operators the right to choose a tax regime based on the Gross Gaming Revenue (GGR) model, while retaining the existing simplified tax regime of 6% on turnover.
Under Article 102.1.26 of the current Tax Code, winnings of up to AZN 500 from lotteries and sports betting are exempt from income tax, while amounts exceeding this threshold are subject to taxation. This creates a risk that some players who win large amounts may turn to unofficial betting platforms to avoid tax obligations.
In this regard, in order to protect the competitiveness of legally operating operators, retain players in the licensed market, and reduce the share of the black market, it is planned to abolish the 10% tax on winnings exceeding AZN 500 (excluding winnings from promotional lotteries) or optimize the tax burden in this sector.
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