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.
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
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.