Online Casinos and Taxes in Colombia: What Players Need to Know
Nowadays, everyone can play at online casinos. You choose any site, for example, 1win, register, and all the entertainment is immediately open. But how to use gambling sites in Colombia? Do they at least work legally or are there any pitfalls? Now we will tell you all about it!
How Online Casinos in Colombia Work
Online gambling is becoming increasingly popular in Colombia. And the government is now well regulating this sphere. There are now clear rules for both casinos and players. The market has become much clearer.
Gambling laws have come a long way. The most important regulator in the country is Coljuegos. Without their licence, no one has the right to work with Colombians. The Coljuegos have strict rules, but players can sleep well - their money is protected.
The financial side concerns every player. Many people think that winnings can be undeclared. But it's better to do everything according to the law at once, then you'll be in trouble.
Laws and Regulations: What You Need to Know
The whole legislative history started with law #1756 in 2015. It was then that online casinos became legal. Coljuegos got all the powers to control online gambling. Every operator is now obliged to get a licence. Previously, many worked in the shadows, but now everything is fair. And it's a plus for players too - it's safer to play online.
Getting a licence is not easy. You have to show strong financial backing and implement personal data protection. Players have to be able to play responsibly and prove that the games are fair. So now all sites are regularly audited. All this is necessary to protect users from fraudsters and to help those who can't control the urge to gamble.
For example, 1 Win has a Curacao licence. The regulator checks that the games are fair and the money is paid out to gamblers. You can check the licence itself on the website and then by the number on the regulator's website.
Colombia is ahead of many of its regional neighbours in terms of gambling laws. The authorities are constantly updating the rules to suit new technologies. There are casinos with cryptocurrency and virtual reality - the legislators react immediately. Recently, they made amendments on electronic payments and cryptocurrency transactions. It can be seen that the system is flexible and adapts to the new features of the gambling industry.
Taxes: How to Pay and How Much
Taxes in Colombia are very clear. Winnings are income, which means you have to pay tax. The rate can be up to 20% for large sums. The tax service DIAN has set a minimum, up to which you can not pay - about 1.5 million Colombian pesos (about 400 quid). But be warned, even small but frequent winnings can exceed this limit in total. Pay attention.
The tax withholding system depends on the particular casino. Local licensed sites usually deduct the necessary percentage for large payments. But with international sites is more complicated. There all the responsibility lies on you. Do not know about these nuances? It is better to understand in advance.
Different types of winnings may be taxed differently. For example, prizes in poker tournaments are sometimes treated as competition income, and this affects the tax rate. And if you are a professional player and live from it, you will have to register as self-employed. And you have to keep a record of all transactions.
How to Declare Winnings Correctly
It is not so difficult to declare winnings. Report all gambling income in your annual tax return. Send it to DIAN. Be sure to keep all proofs:
- game account statements;
- bank notifications;
- certificates from the casino.
Without these papers, there will be a lot of problems later if the tax office decides to check.
Technology is now in the service of the state. Colombian banks leak information about large transfers to the tax authorities. They exchange data with each other, so it is almost impossible to hide large sums of money that come into the account on a regular basis. It is better to play it straight and declare everything honestly.
Colombia has signed a bunch of international tax information exchange agreements. So even winnings on foreign sites that you withdraw to accounts in other countries can be traced. The world is becoming more transparent, and the old tax avoidance schemes no longer work.
What Happens If You Don't Pay Taxes
Tax evasion in Colombia can be a serious offence. Penalties start at 10% of the unpaid amount and can rise to 200% if it is proved that you deliberately concealed income. Plus for each day of delay drops penalties. You may end up paying several times more than you saved. So the game is definitely not worth it.
DIAN looks particularly closely at those who live large on a small salary. Regularly withdraw large sums from casinos, but do not show them in your tax return? High risk of tax audit. And they will check not only the current year, but also several previous years. Imagine how many will have to pay additional taxes, penalties and interest for 3-5 years. The amounts are astronomical. In case of systematic evasion, there is also a risk of criminal punishment.
However, if you're an average player, chances are your winnings won't even cross the threshold and the money can be taken without declaring tax.
In general, you can earn in the casino and you do not have to pay money to the state. The main thing is not to go over the income threshold. Play on 1Win openly and honestly and good luck!