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
Continuation of the article from the October issue of the magazine…
The fiscal obligations provided in the Fiscal Code
1. Mandatory taxes and social contributions on income
Tax receivables, regarding taxes and mandatory social contributions on income, due by individuals, withheld by withholding at source by employers are established by the taxpayer’s tax return being assimilated with a tax decision, subject to further verification and produces the legal effects of notification of payment from the date of its submission. In the tax return the taxpayer must calculate the amount of the tax liability.
Mandatory income taxes and social contributions include:
A) Income taxes
Income taxpayers with a withholding tax regime are obliged to calculate, withhold, pay and declare the withholding tax until the deadline for its payment, inclusive.
Income taxpayers are required to file a tax return calculation and withholding tax for each beneficiary of income with the competent tax authority until January 31, inclusive of the current year for the expired year, and they are required to file the declaration regarding the obligations to pay the social contributions, the income tax and the nominal record of the insured persons. Income taxes, due to online gambling organizers, include:
a) The tax on salaries and assimilated to them – in quota of 10%, applied to the tax base and the practice of establishing the fiscal claim is realized by drawing up and submitting the Tax Return no. 112, until the 25th of the following month, according to Order no. 2814 of October 1, 2020, for the approval of the model, content, method of submission and management of this statement;
b) The dividend tax – in the rate of 5% applied to the tax base – and the practice of this fiscal claim is made by drawing up and submitting the Tax Return no. 100, until the 25th of the month following the month in which the dividends are paid, as provided in ANAF Order 587 of 2016, updated, by completing the name of the tax claim:
150 – Tax on dividends distributed / paid to legal entities;
604 – Income tax on dividends distributed to individuals;
631 – Tax on income from dividends obtained from Romania by non-residents;
c) Income tax from prizes and competitions – income in the form of promotional prizes is imposed, by withholding tax, with a share of 10% applied to the net income earned from each prize. Prizes below the value of the non-taxable amount established in the amount of 600 lei, inclusive, made by the taxpayer for each prize are not taxable. The practice of this tax claim is achieved by drawing up and submitting the Tax Return no. 100, until the 25th of the month following the month in which the payment is made, as provided in the ANAF Order 587 of 2016, updated by filling in the name of the tax claim: 608 – Tax on income from prizes or 637 – Tax on incomes obtained by non-resident individuals from prizes awarded at competitions organized in Romania;
d) The tax on gambling income due is determined, for each payment, by applying the following tax scale, on each gross income received by a participant, from an organizer or payer of gambling income: up to 66,750 lei , including, by 1%; gross income of over 66,750 lei and up to 445,000 lei, inclusive, with 667.5 lei + 16%, for the amount that exceeds 66,750 lei and for gross income of over 445,000 lei with 61,187.5 lei + 25% for what exceeds the amount of 445,000 lei. The practice of this tax claim is achieved by drawing up and submitting the Tax Return no. 100, until the 25th of the month following the month in which the payment is made, as provided in ANAF Order 587 of 2016, updated by filling in the name of the tax claim: 621 – Income tax on gambling or 638- -Tax on income obtained from gambling practiced in Romania by non-resident individuals.
The taxes from letter b, c and d, provided for in the chapter “Taxes and fees payable in the single account”, shall be established in a lump sum, following which, by 31 January inclusive of the current year for the expired year, the informative declarations on calculation and withholding of tax for each beneficiary, respectively Informative Declaration no. 205, for the resident income beneficiaries and the Informative Declaration no. 207, for non-resident income beneficiaries, as provided in ANAF Order 48 of 2019.
The practice of gambling in 2020
Taxation of online gambling organizers in 2020
B) Compulsory social contributions:
a) Social insurance contributions due to the state social insurance budget – are due by individuals who are employees or for whom there is an obligation to pay the social insurance contribution, in the amount of 25% applied to the taxable base;
b) Social health insurance contributions – are due by individuals who are employees or for whom there is an obligation to pay the social health insurance contribution, in the amount of 10% applied to the taxable base;
c) Insurance contribution for work – is due to natural and legal persons who have the status of employers or are assimilated to them, in the amount of 2.25% applied to the tax base calculated as the sum of gross earnings from salaries and incomes assimilated to salaries.
The practice of establishing the fiscal claim, for the obligatory social contributions, is realized by drawing up and submitting the Tax Return no. 112, until the 25th of the following month, according to Order no. 2814 of October 1, 2020, for the approval of the model, content, method of submission and management of this statement.
The practice of gambling in 2020
Taxation of online gambling organizers in 2020
2. Micro-enterprise income tax
Mandatory tax for legal entities that: on December 31 of the previous year made incomes below the level of 1,000,000 euros; their share capital is held by persons other than the state and the administrative-territorial units; it is not in dissolution, followed by liquidation, registered in the trade register or in the courts, according to the law.
The income tax rates of micro-enterprises are:
a) 1% of revenues for micro-enterprises that have one or more employees;
b) 3% of revenues for micro-enterprises that do not have employees.
The practice of this tax claim is achieved by drawing up and submitting the Tax Return no. 100, until the 25th of the month following the quarter for which the tax is calculated, as provided in ANAF Order 587 of 2016, updated by filling in the name of the tax receivable: 121 – Micro-enterprise income tax 1% or 121- – Micro-enterprise income tax 3% share.
3. Income tax
Established and due by those who do not meet the conditions for payment of income tax on micro-enterprises and the profit tax rate, which is applied on taxable profit, is 16%.
The practice of this tax claim is achieved by drawing up and submitting the Tax Return no. 100, until the 25th of the month following the quarter for which the tax is calculated, as provided in ANAF Order 587 of 2016, updated by filling in the name of the tax receivable: 103 – Profit tax / advance payments on account of tax on annual profit due by Romanian legal entities or with its registered office in Romania or 105 – Income tax / advance payments on account of the annual profit tax due by foreign legal entities, following as follows, until March 25 inclusive of the following year, to file the Income Tax Return – D 101.
4. VAT
The operations regarding the slot-machine activity, carried out by the persons authorized, according to the law, to carry out such activities are exempt from VAT, without the right of deduction.
We return, in the following issues of the magazine, with other opinions on the activity of gambling…
