Terms of taxation of Japanese casinos will be decided by the government
As Japan prepares for the introduction of integrated casino-resorts, a number of contradictory aspects begin to appear. This is a tax liability for winnings, and it is possible that taxes will be discriminatory, the newspaper Asahi Shimbun reports.
Japanese regulators believe that profits from gambling should be treated as "casual income". This will lead to the fact that it will be taxed, which may indicate that citizens of countries such as China and India will be required to pay income tax on the gain, while other countries such as South Korea and the United States may be exempted from a similar "tax hook".
Currently, Japan has tax agreements with 123 countries and regions. The idea is that foreign tourists, while gambling in Japanese casinos will adhere to the provisions of these agreements. The national tax agency reports that agreements with the United States, South Korea, European countries and members of the Organization for Economic Cooperation and Development (OECD) will keep tax from a visitor in his home country.
Other agreements signed with India, China and Singapore allow Japan to levy taxes on casino wins. These people will have to adhere to Japanese tax laws and will act in accordance with the same taxation system as the citizens of Japan.
Japan should also develop a policy to prevent money laundering. There is an established correlation between casino activity and money laundering (AML), and the country is exploring options that ensure fair play in the casino. Takeshi Nakamura, a lawyer who is involved in solving issues related to gambling and casinos in the country, explained:
"Effective measures to fight against the money laundering, such as a system of careful monitoring of customers, will help identify those who regularly win or use unusual strategies when making bets."
Recall: the ruling coalition of Japan hopes that the law on the introduction of integrated resorts (IR) will be adopted within the next few weeks after the extension of the parliamentary session until 22 of July. However, the opposition group again opposed the legalization of casinos in the country.
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