Feb 10 • 05:44 UTC 🇪🇪 Estonia ERR

The newly adopted gambling tax amendment will come into effect in March

Estonia's parliament is set to vote on a gambling tax amendment that addresses previous wording errors in the law regarding the taxation of online casinos, set to take effect on March 1.

The Estonian Parliament will hold a final vote on a gambling tax amendment initiated by Tanel Tein of the Estonia 200 faction, aimed at correcting wording errors in the existing law that led to the removal of online casinos from tax obligations at the beginning of the year. The proposed changes are critical as they ensure that both chance-based and skill-based games organized online will be taxed uniformly, reinstating the previously removed taxation provisions for online casinos.

In a pivotal revision, the amendment seeks to remove the term 'skill game' from paragraph 6, point 7 of the Gambling Tax Act. This revision establishes a uniform gambling tax rate of 5.5% for both types of games, thus eliminating ambiguity in tax obligations. The Finance Committee has also suggested an initial change in the effective date from the original proposal to March 1, 2026.

The established gambling tax law stipulates that the tax assessment period is based on calendar months, which means that the new law will come into force at the beginning of the following month. This timeline aligns with the interests of market participants and underscores the importance of clarity in regulations for the gambling sector in Estonia, as ensuring effective taxation for online gambling is crucial for fair competition and revenue generation for the government.

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