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Odibets announce plans to deduct 20% from winnings as per Finance Act 2018
Fred Kennedy|Aug. 13, 2019
- Odibets have joined a growing list of betting companies that will deducting 20% from winnings from placed bets
- The move has been necessitate by the enactment of the Finance Act 2018 into law
- The deductions are expected to be channeled to the taxman
Betting firms in Kenya have been slowly adapting to the directive from Betting Control and Licensing Board as well as Kenya Revenue Authority to deduct 20% from all winnings.
The withholding tax on winnings was introduced in 2018 under the Finance Act 2018 but has faced delayed implementation due to litigation.
OdiBets has become the latest betting firm to join others who have opted to comply with the law despite disquiet among sector players.
“Having complied with the directive by the Betting Control and Licensing Board and KRA, the firm will ensure that the tax required by the Government from winners is deducted immediately a bet is complete,” said OdiBets through a statement.
The Government and the industry have been engaging in a push and pull about taxing punters that win prize money for placing bets for some time now.
However, the government appear to have won following the enactment of the Finance Act 2018 into law.
KRA has since notified gamblers that it expects betting firms to deduct and remit the taxes.
“Betting companies, are required to withhold winnings at a rate of 20 per cent… this means that if you place a bet and win KSh50 000 you will receive Sh40 000. The balance of KSh10 000 is withheld by the betting company and remitted to KRA,” said KRA in a statement.
Other players who have already implemented the requirement are Betika and BetLion.
There are however concerns the new tax will stifle growth of the sector and eat into earning by betting firms as customers withdraw.
The tug of war with government has also seen SportPesa withdraw its sponsorship of all sporting activities in protest against what it terms as unfair treatment by government.
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