Japan Sanctions IR Bill & Imposes 30% Tax Rate on GGR

IR Bill JapanAfter numerous rounds of debate across several weeks on 11 policy issues on Integrated Resorts Bill (IR), the Japanese government have closed the matter. The government has given its approval on the last two policies and moved forward the bill for further processing.

The last two policies about the Integrated Resorts Bill were entry fee charged on the Japanese visitors and other residents accessing the casino and tax rate imposed on gross gaming revenue (GGR) on the casinos.

Last Tuesday, a lengthy discussion took place by the ruling LDP Party and its junior coalition partner Komeito. They have finally given their approval for implementing 30% tax rate on the Gross Gaming Revenue (GGR) on the proposed casinos. Both the parties had to compromise on the final tax rate. LDP Party was in favour of less than 30% tax rate while Komeito offered a tax rate in the range of 30-50%.

After a lengthy discussion and arguments between the members, they settled for a final rate of 30% because a higher tax rate could bring implications to the overall casino market in Japan.

In comparison to the neighbouring markets, 15% tax rate on GGR is levied on the casinos in Singapore with additional 5% on VIP plays. In Macau, the tax rate is 39% which is likely to come down as the country is looking for a gaming legislation overhaul soon.

In both these countries, the casinos have to bear 7% goods and service duty tax. In the Philippines, the Bureau of International Revenue has imposed 30% income tax on all the licensed casinos in the country.

Locals to Pay Entry Fee at the Casino

As far as charging entry fee from the residents, both the parties have settled for JPY 6000. Before the compromise, LDP Party wanted to impose JPY 2000 as local entry fee while Komeito wanted the amount to be JPY 8000 which is equivalent to SGD 100 which is chargeable to the locals entering the casinos in Singapore.

Both these parties agreed for a lower entry fee because they realised that the GDP of Singapore is more than that of Japan. It would not be reasonable for Japan to impose high entrance fee from the locals entering the casino. The government of Japan tackled some issues, and the IR Bill received final clearance.

In the policies of the IR Bill, it states that 3% of the gross floor area of casino resort should be dedicated to gaming, requirement and limit for the Japanese locals for casino visit and three casino resorts would be offered a license at the moment. The government latest by June 2018 would finally approve the bill.

Jay Stevens

Jay Stevens

Hi, my name is Adam Jay Stevens. Welcome to Top10-CasinoSites. Explore the online casino world with my site.


Related Articles

Red Rake Gaming Launches Video Slot Reality Game

Reality shows have been favourite for the past several years and attract a huge fan base across the world. Talent

Paragon Gaming Purchases The Hard Rock Hotel at Lake Tahoe

The Hard Rock Hotel & Casino situated in Lake Tahoe is going through a difficult patch. In the month of

Arkansas Casino Gambling Bill Details Now Made Public

At the moment, Arkansas does not have any legalised casino industry, but the situation could change soon because the legislators

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

<

0%