Inside Asian Gaming

IAG JAN 2021年1月 亞博匯 80 Locals who win in Japan’s IRs will face taxes similar to those applied to public gambling pursuits such as horse racing. 贏得日本IR的地方將面臨與賽馬等公共賭博活動相同的稅費。 T he general framework for taxation of Japan’s first IRs, now expected to open in the late 2020s, has been decided. As stipulated in the Outline of 2021 Tax Reform Proposals, the winnings of foreign casino guests will not be subject to income tax, shelving an earlier proposal by the Ministry of Finance and Ministry of Land, Infrastructure and Transport that would have certainly reduced Japan’s attractiveness as a high-end gambling destination. It doesn’t look like local players will enjoy the same benefits, with the Outline of 2021 Tax Reform Proposals also stipulating that local gamblers will be “taxed in certain cases in the same way as public gambling”, in which case the income will count as “occasional income.” However, the decision to exempt foreign guests shows that authorities are keeping a close eye on international standards. Notably, neither Macau nor Singapore levy a tax on winnings, and the Outline stipulates, “From the perspective of ensuring Japanese IRs the ability to compete internationally, non-residents will not be taxed on income generated in the casino.” Tax on profits made at a casino are directly tied to a customer’s desire to play, and thus their desire to visit Japan, making such stipulations a vitally important cog. Needless to say, both operators and local governments have been anxiously awaiting this decision. “It would be nonsense to tax the winnings of visiting tourists,” says Hiroshi “Rocky” Katagiri, a former Las Vegas-based dealer who now heads local casino school, IR Gaming Institute Japan. JAPAN