Operation of Gaming Machines and Lotteries by Clubs/Societies
When a club or society conducts a lottery (e.g. Tombola, Continuous Lucky Draw, Single Lottery) or operates gaming machines for its members, the authorised promoter of the lottery or the authorised person of the gaming machines of the club or society has to submit the required records and pay gambling duty to IRAS. The method of calculating the gambling duty, record-keeping requirements, due dates for paying duty, and due date for filing the return vary with the type of activities organized.
Requirement to File Form PL-R and Submit Audited Financial Statements
Clubs conducting lotteries or operating gaming machines are required to:
1.File Form PL-R (Gambling Duties Return) by the 15th of the month following the end of the month it conducts the lottery or gaming machines (except for scheduled lottery).
For clubs conducting scheduled lottery (one-time), the Form PL-R has to be filed within 15 days from the date of the lottery.
Form PL-R is a return for any club or society or other body of persons (incorporate or unincorporate) who operate all types of lottery and gaming machines.
A club conducting a few lottery types (e.g. gaming machines and Tombola) can file the duty payable for these lotteries in a single return.
The form must be signed by a principal officer (e.g. President, Honorary Secretary, Treasurer or management committee member) per Registry of Society's records.
Clubs have to download the Form PL-R (Gambling Duties Return)version8 template for reporting lotteries and submit the original copy to IRAS.
Additional Filing Requirements for Clubs Operating Gaming Machines
Summary of Filing and Payment Requirements
|Forms to be filed||Type of gaming activities||Frequency of filing||When to file and pay?|
|Monthly||15th day after the end of the month.|
(Gambling Duties Return)
|Ad hoc basis when a single/scheduled lottery is conducted||Within 15 days after the date of event.|
|Monthly||15th day after the end of the month.|
|Audit Checklist for Form PL-R1||To be submitted when audit exception is noted||15th day after the end of the month.|
(Reconciliation of Meter Readings and Actual Cash Flow)
|Upon IRAS' request||Upon IRAS' request|
|Audited Financial Statements for the year||Yearly||Within 6 months from the club's financial year-end|
As long as the club holds a valid lottery licence and gambling revenue approval, it is required to file Form PL-R even if there is no lottery conducted during a reporting period.
If the audited financial statements does not reconcile with the club's duty submissions for that year, the club will be required to provide reconciliation.
Obtaining Forms PL-R, PL-R1, PL-R2, Audit Checklist for Form PL-R1 and Hard Meter Casing Seal Register
You may download the templates for the Forms below:
How to file
Inland Revenue Authority of Singapore
55 Newton Road
[Attention: Small Business Division-Compliance and Small Volume Taxes Branch (Gaming Team)]
Cheque payment for gambling duties should be mailed separately from Form PL-R and other required documents.
Q1. Can my club submit the soft copy of the Form PL-R (Duties Return) instead of the hard copy to IRAS?
Yes. The club may submit the soft copy of the signed Form PL-R to [email protected]. The club may retain the hardcopy for its record.
Q2. Can my club’s jackpot room supervisor or Finance Manager sign Form PL-R?
No. Your club's jackpot room supervisor or Finance Manager cannot sign Form PL-R unless he is authorised by the club's management committee (Please refer to Q3). Similar to the signatories required for clubs' Income Tax Return Form P1, only the club's principal officers per Registry of Society's records, such as the club's President, Honorary Secretary, Treasurer or management committee member may sign Form PL-R.
Q4. Forms PL-R1 and PL-R2 require signature by the “club’s representative”. Do they follow the same signatory requirement as Form PL-R?
Forms PL-R1 and PL-R2 can be signed by the club's staff (e.g. jackpot room supervisor) who prepares the form.
Form PL-R1 needs to be marked with audit identification by affixing the audit firm's stamp and providing the name of the auditor who is involved in the review.
Form PL-R shall be signed by the club's principal officers per Registry of Society's records, such as the club's President, Honorary Secretary, Treasurer, management committee member or staff authorised by the management committee (Please refer to Q3).
Q5. For Form PL-R1, a gaming machine has to be checked by a technician if the difference between soft and hard meter readings exceeds $5. The reason for the difference shall be documented in the "Reason if meter difference > $5" worksheet and submitted together with the Form PL-R1 to IRAS. Is this threshold of $5 applicable to variances between the profit based on meters and profit based on manual records in Form PL-R2 as well?
The club may decide on the amount of tolerable variance for Form PL-R2. It need not follow the same $5 threshold in Form PL-R1. However, it is recommended the tolerable variance be set up-front by the club's management (in consultation with the club's external auditors if necessary) so that the staff is clear on the appropriate follow up actions for variances that exceed the threshold when preparing Form PL-R2.
For example, if a club decides that it is reasonable to accept a variance of $20 per gaming machine for purposes of completing Form PL-R2, the club may choose not to investigate variances which are less than $20. Conversely, if any machine shows a variance exceeding the club's threshold, it should be checked and reasons for the variance ought to be documented.
Possible causes of variance for Form PL-R2 might include:
- Incorrect recording as a result of human error
- Not converting credits registered in meters to dollars
- Faulty machine (or meter)
- Theft from machine hopper or cash box
Form PL-R2 is to be prepared monthly and maintained as a supporting document to the Form PL-R. Clubs shall submit Form PL-R2 upon IRAS' request.
Q6. My club conducts a scheduled lottery (one-time) on 5 Aug 2022 and operates gaming machines in Aug 2022. Can I report the gambling duties payable for both the scheduled (one-time) lottery and the gaming machines on the same Form PL-R which will be submitted by 15 Sep 2022?
In this case, you will have to submit separate forms for the two types of lotteries conducted in Aug 2022 as the gambling duty payable on the scheduled lottery (one-time) conducted on 5 Aug 2022 has to be reported by 20 Aug 2022(15 days from the date of the lottery); whereas the gambling duty on the operation of gaming machines in Aug 2022 will need to be reported by 15 Sep 2022. Assuming further that you conduct another scheduled lottery (one-time) on 5 Sep 2022 (for which filing is due on 20 Sep 2022), you may then report the duty payable for both lottery types on the same Form PL-R and submit it by 15 Sep 2022.
Q7. My club decides not to claim the cascade payouts when computing gambling duty, what should my club take note of when completing Form PL-R and the GST Return?
If your club does not wish to claim cascade payouts as part of "Total winnings paid" to lower the amount of GST Chargeable on gaming supplies, your club should take note of the following:
- Form PL-R: Do not enter any amount under Line 1b (ii) "Jackpot prizes awarded"
- GST Return: Do not reduce the standard-rated supplies by the cascade payouts