On 18 July 2020, the Law no. 77/2020 converting with amendments the “Relaunch” Law Decree no. 34/2020 on Covid-19 emergency economic and financial measures to sustain economic activities relaunch was published on the Official Journal, assuming the necessary legal value and becoming law with subsequent enforceability erga omnes.
The converted Law Decree includes an additional taxation on betting to sustain sport -additional respect to the current betting taxation on GGY – established at 0.5% of the betting collection deducted the portion referred to the applicable GGY tax.
Specifically, it refers to betting offered in whatsoever form and modalities, including virtual betting. This additional taxation is applicable starting 19 May 2020 and until 31 December 2021.
On 29 May 2020, the Ministry for Sports already issued the implementation decree on the redistribution of the amounts deriving from the abovementioned fund to amatorial sports entities, interpreting the law provision – which interpretation could be challenged before the competent Courts.
From an operational perspective, it is now awaited an implementing decree from the Ministry of Finance to state how this 0.5% will be calculated and to which betting activities it will be applicable, should some betting activities (such as betting exchange) be excluded or not from its application.
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