Gambling practice in 2018

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Calculation method, declaring and paying the license and license fees

Fixed odds betting

Series of articles from “The Practice of Gambling” by Anchidim Zagrean, Rombet Vice –President

1) Gambling license fee
Submission and approval of documentation in January 2018 – first licensing
Declaring and paying the license fee – in the fixed amount – in advance:
– in January, with effect from 01.02.2018
– or at the latest on 25.02.2018, with effect from 01.03.2018
– valid rate, 1 euro = 4.5878 lei
Fixed odds betting gamble = 25,000 euro x 4,5878 = 114,695 lei, stating:
➤ According to Order 587 of 2016 – Declaration 100, Annex 3 – no. 66 of the Nomenclature, respectively, the Fiscal Obligation 536 of Declaration 100;
➤ Declaration to be filled in as reporting date, 2018-01, ticked in the declaration, obligation with term other than 25 and date 31.01.2018, as the due date;
or declaring as reporting date, 2018-02, ticked in the statement, an obligation with a term other than 25 and the date 25.02.2018 as the due date.
For the next 9 years, the license fee is to be declared and paid – ten calendar days before the end of the previous year, at the rate of the first working day of October, published in the Official Journal of the European Union.
2) Gambling authorization fee
Submitting and approving documentation in January 2018 – first authorization
Statement and payment of the authorization fee
– For the first year of authorization
– in anticipation, in January, with effect from 01.02.2018;
– or at the latest on 25.02.2018, with effect from 01.03.2018
– valid exchange rate, 1 euro = 4.5878 lei
In the example, we considered the version of the entry into force of the license and the authorization, due to be on March 1st , 2018.
A) Estimated income for one year –
resulting in the tax base x 16% – but not less than EUR 90,000, then:
Monthly regularization, after the income exceeded the estimated income or the legal minimum.
Statement and payment of the authorization fee in advance:
– In February 2018 (in the documentation the fee is less than 90.000 euros)

Authorization fee = 90.0000 euros x 4.5878 = 412.902 lei
➤ Acc. to Order 587 of 2016 – Declaration 100, Annex 3 – no. 67 of the Nomenclature, respectively, the Fiscal Obligation 537 of Declaration 100;
➤ The declaration is filled in as report date 2018-02, it is ticked in the declaration, obligation with a term other than 25, and the date 25.02.2018 is passed as the due date.
1 Amount due = 412,902 lei
2 Amount due previously
3 Payment amount = 412.902 lei
➤ The next declaration and payment after the income exceeded the estimated income:
1. On April 25th 2018, for March 2018, the income is calculated:
➤ collected fee (Cf) + bonuses (B) – prizes awarded (Pa)
Tc (Cf) = 10,000,000 lei;
B = 1,000 lei;
Pa = 8.000.000 lei.
Achieved revenue = 10.000.000 + 1.000 – 8.000.000 = 2.001.000 lei
Authorization fee = 2.001.000 x 16% = 320.160 lei
The authorization fee, calculated based on the income earned, is less than the calculated tax at the estimated income – nothing to be declared and nothing to pay

Monthly recalculation for the entire licensing period
2. On May 25, May 2018, for April 2018, the cumulative revenue is calculated (03.2018 + 04.2018)
➤ collected fee + bonuses – prizes awarded
Tc (Cf)= 20.000.000 lei;
B = 5.000 lei;
Pa = 15,000,000 lei.
Income achieved = 20.000,000 + 5,000 – 15,000,000 = 5.005.000 lei
Authorization fee = 5.005.000 x 16% = 800.800 lei
The calculated authorization fee is higher than estimated – to declare and pay the difference, acc. Order 587 of 2016 – Declaration 100, Annex 3 – no. 65 of the Nomenclature, respectively, the Fiscal Obligation 504 of Declaration 100;
➤ as follows:
1 Amount due = 800.800 lei
2 Amount due previously = 412.902 lei
3 Payment due = 387.898 lei
Starting with this Statement, throughout the licensing period, the authorization fee is adjusted based on the income earned by the organizer by filling in Item 65 of the Nomenclature, and the Fiscal Obligation 504 of Declaration 100 as required by Order 587 of 2016.
3) Gaming authorization fee – second year of authorization
Submission of documentation, at least 30 days before expiry date, to obtain an extension of the authorization – another 12 months – submission of documentation in January 2018
– Approval of the documentation in February 2018 – for the second year of authorization
A) Declaration and payment of the authorization fee – the second authorization year – in anticipation, in February 2019, with effect from 01.03.2019 Statement and payment of the authorization fee in advance, as required by Article 24 of GD 111 of 2016, for the entry into force of the authorization on 01.03.2019

Therefore, the tax due in anticipation is calculated by applying the 16% percentage to the organizer’s income in January 2019, respectively, to the revenue recorded by the organizer in the month prior to the one in which the Supervisory Committee (the documentation is reviewed by the Supervisory Committee in February 2019), as follows:
➤ collected fee + bonuses – prizes awarded
Tc (Cf) = 10.000.000 lei;
B = 1.000 lei;
Pa = 8.000.000 lei.
Income achieved = 10.000.000 + 1.000 – 8.000.000 = 2.001.000 lei
Authorization fee, due in advance = 2.001.000 x 16% = 320.160 lei
In February 2019, respectively, until 28.02.2019, one declares and pays in advance 2.001.000 x 16% = 320.160 lei
➤ Acc. to Order 587 of 2016 – Declaration 100, Annex 3 – no. 67 of the Nomenclature, respectively, the Fiscal Obligation 537 of Declaration 100;
➤ The declaration is filled in as report date, 2019 – 02, the deadline is other than 25th and the date 28.02.2019 is considered as the due date, as follows:
1 Amount due = 320.160 lei
2 Amount due previously
3 Payment due = 320 160 lei
B) Monthly recalculation for the entire licensing period
On April 25, 2019, for March 2019, the revenue actually generated by the organizer is to be calculated
Income = collected fee) + bonuses – prizes awarded
Tc (Cf) = 1.500.000 lei;
B 10.000 lei;
Pa = 1,000,000 lei.
Achieved revenue = 1.500.000 + 10.000 – 1.000,000 = 510.000 lei
Authorization fee = 510,000 x 16% = 81,600 lei
The calculated authorization fee is declared, as stipulated by Order 587 of 2016, updated:
➤ Acc. to Order 587 of 2016 – Declaration 100, Annex 3 – no. 65 of the Nomenclature, respectively, the Fiscal Obligation 504 of Declaration 100;
➤ as follows:
1 Amount due = 81.600 lei
2 Amount due previously = 320.000 lei
3 Payment due = -238.400 lei
Throughout the licensing period, the authorization fee is adjusted based on the revenue earned by the organizer by filling in Item 65 of the Nomenclature, that is the Fiscal Obligation 504 of Declaration 100 as required by Order 587 of 2016.

We will return with more opinions in the next issue of the magazine …