All the legal casinos in Singapore and their operations are regulated under the scope of the Casino Control Act. The Casino Regulatory Authority of Singapore is the regulatory body. The IRAS is in charge of levying taxes on legal casino activities in the country.
Let us now look at some related revenue concepts and taxes in the sections below.
The gross gaming revenue (GGR) is calculated as follows:
A is the total amount of wins from all the games conducted by a casino operator within their premises.
B is the Goods and Services Tax (GST) that is levied by the casino operator on all the gaming activities that are conducted on their premises. This tax is levied under the provisions made in the GST Act.
The casino tax is computed on a monthly basis. It is based on the GGR that a casino operator makes from its gaming supplies inside the casino. Let us now take a closer look at the concept of net win.
The concept of net win will have to be discussed under two separate categories. The first one is where a casino operator is directly involved with the operations of the wager placed. The second is where a casino operator conducts the betting activities but is not directly involved in operating the wager.
Under this category, the net win is the difference between the total amount of bets placed on the casino game and the amount paid out in winnings to the participants by the casino operator. Some examples of this category are gaming machine and table games, where the players fight it out against the casino operator.
Net win, in this case, is the total value of all the consideration in money or anything comparable in value to money, collected by a casino operator. The money would usually be raised by conducting casino games.
A suitable example of this category could be contests where the players compete against each other rather than against the casino operator.
|Type of Player||Rate of Tax|
Not sure who a premium player is? A premium player is someone who opens an account with a casino operator and makes a minimum deposit of S$100,000.
The following example will hopefully get a better grasp of casino tax and its computation:
This example shows the tax payable on income from premium players. Let’s say that the net wins from table games, tournaments, gaming machines, and counter games are S$30 million, S$100,000, S$8 million, and S$2 million, respectively.
Therefore, the total net win from all the different betting types is S$40,100,000 (S$30 million+S$100,000+S$8 million+S$2 million). The GST chargeable will be S$2,623,364.49 (7/107x40,100,000).
The gross game revenue would be the difference between the total net win and the GST applicable. It will be S$37,476,635.51 (=40,100,000-2,623,364.49) in this case.
Therefore, the casino tax payable on income from premier players only, will be S$1,873,831.78 (=5/100x37,476,635.51).
The net casino tax payable will include the collections from gaming services offered to both premium players and other players.
[Disclaimer: The numbers here are simply illustrative in nature and may not bear any resemblance to actual results.]
If you’re a casino operator, you’ll have to file a tax return on a month’s income and settle the casino tax dues for that month by the 15th of the following month.
The tax return filed should contain details of the gross gaming revenue and the casino tax paid. This should include collections from premium players and other players. You could face
Yes, you’ll be punished if your business is found to be non-compliant with the tax regulations. Depending on the type of tax non-compliance, you could attract the following penalties:
|Type of Non-Compliance||Penalty|
|Late filing||A penalty of S$1,000 per day, subject to a maximum of S$10,000.|
|Late payment||A penalty of 5% on the outstanding tax dues and an additional 5% for each month the tax remains unpaid. This could go up to 50% of the outstanding tax dues.|
|Incorrect information in the filed tax return document||A penalty equal in value to twice the amount of the underpaid tax and either/both of the following:
|Tax evasion||A penalty equal in value to four times the amount of the underpaid tax and either/both of the following:
Yes, Singapore rules allow foreign junket promoters and junket representatives to get into casino marketing arrangements with local casino operators. These foreign players, however, first need to apply for and get valid licences.
Foreign junket promoters are known as Licensed International Market Agents (licensed IMAs) and foreign junket representatives are called Licensed International Market Agent Representatives (licensed IMA reps).
A junket promoter is a body of people (or a single person) that sets up a marketing arrangement with a casino operator.
A junket rep usually represents a junket promoter and is in charge of setting up a marketing arrangement and organising gaming events along with a casino promoter.
A licensed IMA’s income in Singapore will be subjected to tax under the local tax rules. The relevant tax section is 10(1) of ITA (the Income Tax Act).
The income of a licensed IMA could include commissions and payments received for setting up a marketing arrangement or organising an event in association with a casino operator.
You must maintain proper records of your income because IRAS could ask for it when assessing your income tax for the relevant year of assessment. For the relevant year of assessment, you must maintain all accounting records and proof of business transactions for a period of 5 years.
If you’re a licensed IMA, IMA Rep or an IMA Self-Employed Individual, you’ll be liable to file tax returns keeping the following in mind:
You’ll have to file a Corporate Income Tax Return. You may have to use Form C or Form C-S. You’ll also have to provide IRAS with an estimate of your chargeable income within 3 months from the end of the relevant financial year.
You won’t have to furnish details of your chargeable income if and only if you receive an administrative concession.
You’ll have to file an income tax return using the correct form. You’ll have to use Form B if you’re a sole proprietor or partner and Form P if you’re a part of a partnership.
You’ll also have to furnish balance sheet records, and a certified profit and loss statement in case the annual revenue generated by your business is at least S$500,000.
As per the rules, you may have to file an income tax return. You’ll have to use Form B1 in order to do so. Your employer may also give you a Return of Remuneration. They will have to use Form IR8A if they want to do it.
If you not a resident of Singapore, you’ll be taxed at a flat rate of 15% or at resident rates, whichever is higher.
Refer to the IRAS website for more details on your tax and filing obligations.
Are you a Non-Resident Licensed IMA in Singapore? Do you receive commissions or other payments from casino operators in Singapore? If the answer to both the questions is in the affirmative, you’ll be charged a withholding tax of 3% on such income. The relevant laws are mentioned in Section 45H of the ITA.
To stay in the good books of IRAS, you’ll have to comply with the tax laws and arrangements in place. This way, you can maximise the profit returns from your casino business without invoking the wrath of the tax authorities of Singapore. For queries related to casino tax, get in touch with IRAS.