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News & Press: Tax Professional

Proposed Gambling Tax

01 March 2013   (1 Comments)
Posted by: Stiaan Klue
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In 2011 government announced a national gambling tax proposal, that with effect from 1 April 2012, all gambling winnings above R25,000, including those from the National Lottery, would be subject to a final 15 per cent withholding tax. It was also indicated that similar gambling taxes exist in India, the Netherlands and the United States. According to the Minister the proposed gambling tax would assist in discouraging excessive gambling in South Africa.

In the 2013 Budget Speech, it was announced that a national tax based on gross gambling revenue of casinos would be introduced at a rate of 1 per cent in addition to the provincial rates. Accordingly, any proceeds derived by a taxpayer from gambling will be subject to an additional 1 per cent levy on top of an existing provincial gambling tax base of 1 per cent.

Although it was announced in the 2012 budget that the proposed tax would be introduced from 1 April 2013, the announcement made in the 2013 budget gives no indication of a specific date but rather states that the proposed gambling tax is to be implemented before the end of 2013.

By Nicole Paulsen, Associate, Tax, Cliffe Dekker Hofmeyr


Andri van Tonder says...
Posted 21 October 2015
Good morning, can someone please tell me whether or not the proposed tax law has been implemented and what this means regarding the winnings at casino's and the lottery for individuals?


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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