Ireland Online Gambling Tax
The newly formed Irish Government has indicated in its 'Programme for Government 2020' that it intends to 'establish a gambling regulator focused on public safety and wellbeing, covering gambling online and in person and the powers to regulate advertising, gambling websites and apps', which could result in the implementation of some of the. Gambling winnings are entirely tax free in the Republic of Ireland. There is no catch involved. Gambling winnings are neither considered income nor a capital gain and so are exempt from the tax system in Ireland. Please RATE the answer positively so that I may get paid. Bookmakers must now pay 15% POI tax but not punters. POI tax on any games of chance increased from 15% to 21% but again not for punters. In the UK any and all winnings from gambling – either online or at betting shops – are entirely tax free and do not need to be declared as part of any tax return. Paschal Donohoe said that it was “timely” to increase the current 1 per cent rate levied on all bets placed in the Republic of Ireland to 2 per cent for all bookmakers. Bookies face a doubling of.
The island of Ireland consists of two different countries: Northern Ireland and the Republic of Ireland (hereinafter called ‘Ireland’). The latter one has a population of more than 4.6 million people, and its total land area covers approximately 70,200 km2. Ireland doesn’t form part of the United Kingdom, and its capital city of Dublin has a population of nearly 553,000 people. In addition to its EU membership, Ireland is also a member of the United Nations. Irish is the national and first official language, while English is the second official language.
Most people associate Ireland with beer, the green Shamrock, and folk music. The Irish affectionately call their famous stout beer ‘the black stuff’, which refers to its dark color. Saying that Guinness is the country’s most internationally recognized symbol would go down as the understatement of the day. Ryanair and Primark, both low-cost companies, are two other examples of famous Irish brands.
Nearly every type of gambling is legal in Ireland, including land-based casinos, lottery games, and sports betting. It’s an open secret that British have a weak spot for betting on sporting events, and the Irish are certainly no exception.
Irish gambling fans can also enjoy online games of luck as well, which is completely legal on the Emerald Island. The government of Ireland grants licenses to operators of online casinos and sportsbooks. On top of all that, Irish gambling enthusiasts can freely play at foreign-based gaming sites, including internet casinos and online sports betting.
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Many forms of gambling and games of chance have long had a place in Irish culture. The expression ‘the luck of the Irish’ is a testament to their inborn fascination with all kinds of gambling. Local gambling devotees can choose from many games of chance, both online and at brick and mortar establishments. The popularity of internet gambling and sports betting continues to gain popularity, and Irish should certainly check out this trio of premium online gaming sites:
Popularity online casinos in Ireland explained
It would be a gross understatement to say that the Irish love a gamble, which explains the huge popularity of gambling and sports betting in the ‘land of the leprechauns’. Based on the purchasing power parity (PPP), Ireland is a wealthy country, as its PPP equals 345 percent of the world’s average. The Irish gross national income (GNI) per capita however, is below the average of the Organisation for Economic Co-operation and Development (OECD) countries.
Since 1960, the Irish economy has shifted from middle income to high income. In the nineties, the economic development accelerated, and employment nearly doubled. Ireland benefitted from the single market in Europe as many globalizing companies settled in Ireland. Its knowledge-based economy consists of multiple flourishing industries, including services (e.g. financial) and high-tech (ICT).
The Irish economy also benefits from the low corporate tax, which has lured many leading companies, including Twitter, Facebook, LinkedIn, and Google. That’s why Ireland is referred to as a tax haven.
After impressive growth numbers, 7 percent between 2001 and 2004, and 10 percent between 1995 and 2000, the Irish economy entered a recession in 2008. The EU and the International Monetary Fund (IMF) rescued the Irish economy with an extensive bail-out package. In 2013 however, growth returned (+1.1 percent), followed by a 4.8 percent expansion in 2014. Things got even better as the Irish economy posted an impressive 26.3 percent growth in 2015. The employers’ group Ibec has downgraded the expected expansion to 2.8 percent for 2018, with the same applying for the 2017 projected growth (3.7 percent).
Also in terms of unemployment, Ireland is making progress, as the jobless rate has dropped to the lowest rate since 2008. Market watchers expect the unemployment rate to fall below 7 percent by the end of 2017.
After a penetration rate of 61.2 percent in 2007, more than 81 percent of the Irish population has access to the internet in 2017. The usage of mobile devices, e.g. smartphones and tablets, continues to grow in Ireland. Indeed, more than 87 percent of the population owns a smartphone. Considering the Irish’ love affair with all sorts of gambling, it doesn’t come as a surprise that both internet gambling and online sportsbooks are hugely popular in the ‘land of saints and scholars’.
Ireland Online Gambling Tax Rates
Gambling and online casinos in Ireland
So, it’s crystal clear that the Irish have a weak spot for games of luck, with a strong rise in its online variant. This is why so many gamblers from all over the world have embraced the exciting world of virtual gambling:
- A myriad of rewarding bonuses
- Smashing promotions packed with cool prizes
- Dazzling payouts, and life-changing jackpots
- Entertaining online casino games loaded with cool features
- Very lucrative loyalty programs
- Vibrant live online casino portals
Ireland Online Gambling Taxes
How to deposit money in an online casino when I’m from Ireland?
Another cool feature at online casinos is the ability to play for free. However, gamblers who like to win some real cash have to play for real money. Online gaming sites are also famed for the huge number of user-friendly and quick payment systems, for example these secure methods:
- Credit cards, such as Maestro, Visa, and MasterCard
- E-wallets, e.g., Skrill, and Neteller
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A long-debated tax on international online-gambling services who offer their services to Irish punters is set to become law, according to a statement from Ireland’s finance minister, Michael Noonan.
The tax change, in which remote (online) operators are required to pay 1% of their total revenue derived from Irish-facing online gambling sites, will go into effect later this year. The change has been debated sine 2011 in various forms, and was finally codified with the introduction and eventual passage of Ireland’s Betting (Amendment) Bill 2013.
The change to the applicable tax code for online-gambling providers extends a similar tax that has long existed in physical Irish betting shops, following the trend over the last 15 years of most sports wagers now being placed online. Irish market leader Paddy Power has disclosed that roughly three quarters of all its Ireland-derived revenue now occurs via online bets. The change, according to Paddy’s CFO, Cormac McCarthy, would have resulted in an eight million Euro tax levy for Paddy Power in 2014, and will likely result in a similar tax bill this year as well.
Paddy Power’s McCarthy made the comments in a brief press meeting following the announcement by finance minister Noonan of the bill’s imminent signing, as reported by Reuters and other sources.
The Irish online gambling bill mirrors in some aspects a controversial point-of-consumption tax that was implemented last year in Great Britain, and which remains under legal challenge in that country by a major Gibraltar trade association whose members are targeted by the online levy included in the UK’s Gambling (Licensing and Advertising) Act 2014.
Like the Irish measure, the UK act implements a tax on online services, whether or not the company or companies in question maintain a physical business presence in the country — either Ireland or the UK — where the punters and their betting action are physically located.
Several dozen prominent UK gambling firms have relocated to Gibraltar over the past decade to take advantage of the tax-free “online” loophole, as offered by Gibraltar. Those firms continue to battle the new UK tax regime under the auspices of the Gibraltar Betting and Gaming Association (GBGA), which counts roughly two dozen of the former British firms as members.
By comparison, Paddy Power remains tied to and proud of its Irish heritage, and remains incorporated in Dublin. However, like its industry competition, Paddy Power has also derived some measure of its recent corporate profits from the growing tax-free loophole, which the Irish tax-code modifications plan to slam shut.
The official signing of Ireland’s Betting (Amendment) Bill 2013 will take place in the coming days or weeks. The new law will then implement a brief grace period allowing all firms offering online services to Irish punters to obtain licensing from Ireland.
Ireland’s change continues to highlight a growing point of contention between online-gambling service providers and those countries who chose to license them: Whether taxes on the service should be based on point of consumption (where the bettors live) or country of incorporation. EU outposts such as Gibraltar and Malta have transformed themselves into tax havens catering to the online gambling industry, and their national revenue streams increasingly depend on the licensing regimes associated with that activity.
The shift by many other countries to point-of-consumption taxation frameworks directly threatens the tax-haven status of Gibraltar, Malta, and other remote licensing jurisdictions. Maltese government regulators in particular have previously decried both the Irish and UK tax implementations as an alleged violation of EU “free trade of services” agreements.