Guidelines for Integrated Resorts tax will be included in Japan’s 2021 tax reform but are to be decided by authorieties in December.
The key issue is how the country plans to tax winnings, especially for foreign players.
Japan will reflect any changes in tax guidelines for integrated resorts (IR) in its 2021 tax reform to be revealed in December.
Akira Amari, tax investigation chairman of the Liberal Democratic Party, said after an executive meeting last week that the government will establish a tax system prior to the selection of IR operators by local governments.
She said: “If we don’t decide a system of taxation, it will be completely unpredictable and no operators will want to be involved.”
The key issue is how Japan will decide to tax the customer winnings at IR casinos. Amari said authorities will discuss tax exceptions for foreign customer cashouts.
Japan’s Ministry of Land, Infrastructure, Transport and Tourism is requesting tax reform to eliminate the need for withholding tax on winnings. His proposal is for it to instead be declared on a tax return as temporary income.
The selections of private partners for Japan’s prospective IR projects has been delayed due to the pandemic. Central government now plans to issue least three IR licences in 2022 rather than next year as initially scheduled.