The resolution incorporates "digital services" that will enter the Fiscal Code as activities that can be taxed by the provincial treasury.
Argentina.- Through Resolution No. 23 of the Ministry of Finance, Finance, Public Works and Services of Misiones, dated January 10, 2025, but published in the Official Gazette on Friday, February 7, the province officially established the collection of Gross Income Tax on digital platforms, including online casinos.
The resolution explains how and to which digital services the tax will be charged, including streaming platforms such as Netflix, Amazon, Spotify, online gaming, among others. These are Internet services provided by foreign companies but with clients in the province to whom they bill.
The local media Plan B reported that, according to sources from the Ministry of Finance, Misiones had already been charging Gross Income to platforms, but this resolution provides more clarity on which services will be taxed and which will not. They also clarified that this resolution will not result in an increase in price or additional charge for the mentioned services.
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In Resolution 23 published on Friday, February 7, the following are defined as taxable services: "It is considered that there is taxable activity in the Province of Misiones when the commercialization of online subscription services, for access to all kinds of audiovisual entertainment (movies, series, music, games, videos, online television broadcasts, etc.) that are transmitted from the internet to television, computers, mobile devices, connected consoles and/or technological platforms, by subjects not resident in the country and it is verified that such activities have effects on subjects located, domiciled or located in the territory of the Province of Misiones", explains part of subsection g) of the resolution.
And it adds: "Identical treatment will apply to the intermediation in the provision of services and gaming activities that are developed and/or exploited through any means, platform or technological application and/or device and/or digital and/or mobile platform or similar, such as: online casino gambling, online betting, online roulette, blackjack, baccarat, punto banco, Mediterranean poker, online video poker, seven and a half, hazzard, monte, wheel of fortune, seven fax, bingo, slot machines, sports betting, craps, keno, etc., when the conditions detailed above are verified and regardless of where the servers and/or digital platform and/or mobile network are organized, located, or offer such gaming activities."
With the entry into force of the resolution, the General Directorate of Revenues (DGR) will receive the authority to take all administrative measures necessary to ensure compliance with the new regulations. The authorities have also made it clear that the resolution will come into effect after its publication in the Official Gazette of the Province of Misiones.
The objective of this amendment is not only to strengthen tax collection in the face of new business models but also to ensure that digital service providers operating in the province contribute to the provincial tax system in a fair and transparent manner.
For companies operating in Misiones through digital means, the regulations imply the obligation to register in the provincial tax system and comply with the provisions of the Fiscal Code.
Despite the considerable contribution to state coffers, it is unknown if the money collected was reassigned to the security sector, as stipulated by the legislative reform of 2016.
Mexico.- The government of Nuevo León has collected a significant sum in taxes derived from the entertainment and gambling industry. Since the beginning of the administration of Samuel García Sepúlveda, in 2021, approximately MX$5.335m (USD258m) have been generated. However, details on the destination of these funds are still uncertain, especially regarding their possible allocation to the security sector, as stipulated by a reform approved in 2016.
The tax on gambling and lottery expenditures, which is generated by the 36 casinos and entertainment venues in the state, has shown steady growth. In 2024, up to the third quarter, the collection was MX$1.668m (USD80.9m). This figure is expected to increase, as the amount corresponding to the fourth quarter of the year has yet to be reported.
Regarding the amounts collected in previous years, 2023 closed with a figure close to that of 2022, with MX$1.757m (USD85.2m), while in 2022 the collection was MX$1.445m (USD70m).
The resources generated by this tax should be allocated to a security fund established in the Law of Fiscal Coordination, which is financed with 35 percent of what is collected by this concept, among other sources. However, it is not clear if this allocation has been effectively fulfilled.
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The casino industry continues to be an economic engine in the state, with more than 7,500 machines in operation, representing 8.76 percent of the total nationwide. Additionally, this industry generates significant employment sources, with 8,000 direct jobs and 20,000 indirect jobs in Nuevo León, according to data from the Association of Permit Holders and Suppliers of the Entertainment and Gambling Industry in Mexico (AIEJA).
