The practice of gambling in 2020
Taxation of online gambling organizers in 2020
Article from the series „Gambling practice”, by Anchidim Zagrean, vice-president ROMBET
In this article we summarize the practical aspects of taxation in the activity of online gambling (remote) – respectively: casino games – remote; fixed odds bets – remote; mutual bets – remote; counterpart bets – distance; bingo and keno games – remote as well as online raffle.
The fees specific to the remote gambling activity, as well as the payment terms, are provided in the special regulation on gambling in Romania. The other taxes and fees are regulated by the Fiscal Code and the fiscal procedures and accounting practices are found in the common regulations, in the form of fiscal procedures and accounting regulations.
I. Specific fees:
1. Annual license fee – is set and due in a fixed amount and is calculated according to the turnover of the organizer, as follows: in case of a turnover of up to 500,000 euros, made in the previous year, the annual fee of license is 6,000 euros; in the case of a turnover between 500,001 and 1,000,000 euros, made in the previous year, the annual license fee is 24,000 euros; in the case of a turnover between 1,000,001 – 5,000,000 euros, made in the previous year, the annual license fee is 60,000 euros; in the case of a turnover between 5,000,001 and 10,000,000 euros, made in the previous year, the annual license fee is 96,000 euros and in the case of a turnover of over 10,000,000 euros, made in the previous year, the annual license fee is 120,000 euros. The annual license fee represents the equivalent in lei, at the exchange rate of 4.7511 lei / euro, a rate valid for the entire period of 2020.
The annual license fee shall be declared and paid in advance as follows:
a) for the first year of activity, until the 25th of the month following the month in which the documentation was approved;
b) for the next nine years of activity, 10 days before the expiration of the previous year.
The tax claim, regarding the license fee, is established by the taxpayer’s tax return being assimilated with a tax decision, subject to a subsequent verification and produces the legal effects of the payment notification from the date of its submission. In the tax return the taxpayer must calculate the amount of the tax obligation, and this is provided by the special law. The practice of establishing the tax receivable, of the nature of the license fee, is achieved by drawing up and submitting the Tax Return no. 536 – The fee for obtaining the gambling license, from the chapter Taxes, fees and other obligations that are not paid in the single account, by establishing its amount, as specified above.
The accounting reflection of this operation is done, according to the accounting regulations, by debiting the expense account in advance and then, from here monthly, the quotas related to operating expenses are transferred, in correspondence with the fiscal obligation, of the nature of the license fee.
1. Annual authorization fee – is established and due, for each type of activity, separately for the two stages of authorization:
a) The annual fee, for obtaining the operating authorization, established and due as follows:
– 16% of the estimated annual income, but not less than 100,000 euros, at the exchange rate of 4.7511 lei / euro, for the first year of authorization, within the first year of licensing, must be declared and paid by the 25th, inclusive, of the month following that in which the documentation was approved;
– 16% of the income registered in the month preceding the one in which the documentation regarding the application for extension of the exploitation authorization is analyzed, but not less than 100,000 euros, at the exchange rate of 4.7511 lei / euro, for the next 9 years of licensing, must be declared and paid by the 25th, inclusive, of the month following that in which the documentation was approved.
The tax claim, representing the fee for obtaining the operating license, is established by the taxpayer’s tax return being assimilated with a tax decision, subject to further verification and produces the legal effects of the payment notice from the date of submission. In the tax return the taxpayer must calculate the amount of the tax liability, and this is provided by special law. The practice of establishing the fiscal claim, of the nature of the tax for obtaining the exploitation authorization, is achieved by drawing up and submitting the Tax Return no. 100, until the above deadlines, as provided in ANAF Order 587 of 2016, updated by filling in of the tax receivable: 537 – The annual fee for obtaining the authorization to operate gambling under the chapter Taxes, fees and other obligations that are not paid in the single account, by establishing its amount, as specified above.
The accounting reflection of this operation is done, according to the accounting regulations, by debiting the expense account in advance and then, from here monthly, the quotas related to operating expenses are transferred, corresponding to the tax calculated according to the income from this activity, in correspondence with the fiscal obligation, of the nature of the authorization fee.
b) The annual authorization fee, regularized monthly, depending on the level of income generated – established and due from the first month in which, by applying the percentage of 16% to the actual income, the level of tax established and paid at the time of obtaining the annual authorization is exceeded operation and which will be declared and paid until the 25th, inclusive, of the month following the month in which the organizer’s income was realized, for each type of activity.
The tax receivable, regarding the authorization fee, calculated and due at the level of income from the operation of each type of activity, is established by the taxpayer’s tax return being assimilated with a tax decision, subject to further verification and produces the legal effects of the notification. payment from the date of its submission. In the tax return the taxpayer must calculate the amount of the tax obligation, and this is provided by the special law. The practice of establishing the tax claim, of the nature of the authorization fee due monthly, is made by drawing up and submitting the Tax Return no. 100, until the above deadlines, starting with the first month in which the level of the tax paid in advance was exceeded, as is provided in the ANAF Order 587 of 2016, updated, by completing the name of the tax claim: 504 – The annual gambling authorization fee, regularized periodically, depending on the achievements, from the chapter Taxes, fees and other obligations that are not paid in the single account, by determining its amount, as specified above.
The accounting reflection of this operation is performed, according to the accounting regulations, by debiting the account of operating expenses, in correspondence with the fiscal obligation, of the nature of the authorization fee.
2. Special monthly fee – established from January 1, 2019 by GEO 114 of 2018, established and due, in the amount of 2% of the participation fee collected monthly – is declared and paid to the state budget until the 25th, inclusive, of the month following the month in which the participation fees were collected. The practical compliance is achieved by completing the taxpayer’s tax return, being assimilated with a tax decision, subject to further verification and produces the legal effects of the payment notice from the date of its submission. In the tax return the taxpayer must calculate the amount of the tax obligation, and this is provided by the special law. The practice of establishing the tax receivable is achieved by drawing up and submitting the Tax Return no. 100, until the above deadlines, as provided in ANAF Order 587 of 2016, updated by completing the name of the tax receivable: 541 – Monthly fee calculated on the total monthly participation fees collected by the organizers of online gambling, from the chapter “Taxes, fees and other obligations that are not paid into the single account, by establishing its amount, as specified above.
The accounting reflection of this operation is performed, according to the accounting regulations, by debiting the account of operating expenses, in correspondence with the fiscal obligation, of the nature of the monthly tax.
A copy of all tax returns or any other amendments thereto, as well as all related payment documents will be sent to the ONJN within 5 days from the date of payment.
2. Administrative fees – treated as purchases of services provided, established and owed in a fixed amount, only in the case of remote gambling, for the analysis of documents – in the amount of 2,500 euros and for the issuance of the license – in the amount of 8,500 euros.
3. Annual contribution – established and due, in a fixed amount of 5,000 euro / year, at the exchange rate of 4.7511 lei / euro, by each gambling organizer, to be used in order to prevent gambling addiction . ONJN’s own revenues have the legal nature of a budget receivable and are executed on the basis of ONJN’s notification, which is an enforceable title, and the deadline for payment of the amounts provided is December 15 of each year.
We return, in the next issue of the magazine, with the second part of the article…
