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Hong Kong Company Formation: Betting Duty

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Betting Duty

The Betting Duty (Amendment) Ordinance 2006 was enacted, and came into operation on 1 September 2006. The betting duty on horse races will be charged on gross profits (previously on turnover) at a set of progressive rates from 72.5% to 75%, after deducting dividends and rebates on bets (to bettors making losing bets at or over $10,000). [First $11 billion at 72.5%, next $1 billion at 73%, next $1 billion at 73.5%, next $1 billion at 74%, next $1 billion at 74.5%, 75% for the amount exceeding $15 billion.] The discount rate for specified places (e.g. Macau) is 40% whereas the discount rate for a place outside Hong Kong (other than specified places) is 50%. Duty is also charged, at 30% on contributions or subscriptions to authorized cash sweeps and at 25% on bets made on lotteries (Mark-six) conducted by the authorized company. With effect from 18 July 2003, duty is charged at 50% on the net stake receipts from the conduct of authorized betting on football matches by an authorized company.