20-percent tax on profits
There may be serious competition for Malta in the licensing jurisdiction terms if one takes into consideration the lower tax rates for Danish online gambling operators than their land counterparts, it has been assessed this week.
Industry observers noted that Denmark has already opened applications for online gambling licenses, based on which the licensees will be paying a 20 percent tax on profits, adding that the new regulation will become effective early in 2012 thanks to the Commission's finding that a lower tax rate was justified due to the cross-border and more competitive nature of internet gambling.
These findings were welcomed by the Remote Gambling Association, a trade body that represents the interests of major online gambling operators, including those in Malta. The association opined that “In essence, land-based operations compete within physical national boundaries, while online companies are part of a highly competitive international environment, and fiscal policy should be set accordingly.”
