Taxation of gambling organizers – bet type – in 2020
Article from the series „Gambling practice”, by Anchidim Zagrean, vice-president ROMBET
Continuation of the article in the previous issue of the magazine…
The tax obligations stipulated in the Fiscal Code
1. Compulsory taxes and social contributions on income
Tax receivables, regarding taxes and compulsory social contributions on income, due to natural persons, withheld at the source by employers or payers, are established by the taxpayer’s tax declaration being assimilated to a taxation decision, subject to a subsequent verification and produces the effects of the payment notification from the date of its submission. In the tax return, the taxpayer / payer must calculate the amount of the tax obligation.
Compulsory income taxes and social contributions include:
A) Income tax
The tax payers, with the tax withholding regime, are obliged to calculate, to withhold, to pay and to declare the tax withheld at the source, up to the payment deadline including it.
Payers of income withholding tax have the obligation to submit a declaration regarding the calculation and withholding of tax for each beneficiary of income to the competent fiscal body, until January 31, including the current year for the expired year, except for the payers of incomes from salaries and assimilated to salaries, to the payers of incomes from intellectual property rights, to the payers of incomes under the contracts of sports activity, incomes from rent or from associations with legal persons, these having the obligation to submit the declaration regarding the payment obligations of social contributions, tax the income and nominal records of the insured persons. The income tax, owed by the gambling organizers of the bet type, includes:
a) The tax on salaries and assimilated to them – in a 10% quota, applied to the tax base – and the practice of establishing the fiscal debt is realized by drawing up and submitting the tax declaration no. 112, until the 25th of the following month, according to the order no. 3063 of September 10, 2019 for approving the model, content, method of submission and management of this declaration;
b) The tax on dividends – in the 5% quota applied to the tax base – and the practice of this fiscal debt is realized by drawing up and submitting the tax declaration no. 100, until the 25th of the month following the month in which the dividend is 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 – Tax on income from dividends distributed to individuals”
– “631 – Tax on income from dividends obtained from Romania by non-residents”;
c) The tax on the income from prizes and contests – the revenues in the form of prizes are imposed, by withholding at source, with a 10% share applied to the net income realized from each prize. The prizes under the value of the non-taxable amount established in the amount of 600 lei are not taxable, including, realized by the taxpayer for each prize. The practice of this fiscal debt is realized by drawing up and submitting the tax declaration no. 100, up to the 25th of the month following the month in which the payment is made, as provided in ANAF Order 587 of 2016, updated, by completing the name of the tax claim: 608 – Tax on premium income or 637 – Tax on incomes obtained by non-resident PFs from prizes awarded to contests organized in Romania;
d) The tax on the income from gambling due is determined, at each payment, by applying the following tax scale on each gross income received by a participant, from an organizer or payer of income from gambling: up to 66,750, including, by 1%; over 66,750 – 445,000, including, with 667.5 + 16% for what exceeds 66,750 and over 445,000 with 61,187.5 + 25% for what exceeds 445,000. The practice of this fiscal debt is realized by drawing up and submitting the tax declaration 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 completing the name of the tax claim: 621 – Tax on gambling income or 638- – Tax on the income obtained at gambling practiced in Romania by non-resident PF.
The taxes from the letter b, c and d, stipulated in the chapter “Taxes and taxes payable in the unique account”, are established in the aggregate amount and subsequently, until January 31, including the current year for the expired year, the informative declarations regarding calculating and withholding tax for each beneficiary, respectively D 205, for resident income beneficiaries and D 207, for non-resident income beneficiaries, as provided for in ANAF Order 48 of 2019.
B) Compulsory social contributions:
a) Social insurance contributions due to the state social insurance budget – it is due by the natural persons who have the quality of employees or for whom there is the obligation to pay the social insurance contribution, in a 25% quota applied to the tax base;
b) Social health insurance contributions – it is due by the natural persons who have the quality of employees or for whom there is the obligation to pay the social health insurance contribution in a 10% rate applied to the tax base;
c) The insurance contribution for work – is due to the natural and legal persons who have the status of employers or are assimilated to them, in a 2.25% quota applied to the tax base calculated as the sum of the gross earnings made from salaries and income assimilated to salaries.
The practice of establishing the fiscal debt, for the compulsory social contributions, is realized by drawing up and submitting the tax declaration no. 112, until the 25th of the following month, according to the order no. 3063 of September 10, 2019 for the approval of the model, content, method of submission and management of this declaration.
2. The tax on the income of micro-enterprises – mandatory tax for legal persons who: on December 31 of the previous year made incomes below the level of 1,000,000 euros; their social capital is owned 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 tax rates on the income of micro-enterprises are:
a) 1% of the income for micro- enterprises that have one or more employees;
b) 3% of the income for micro- enterprises that do not have employees.
The practice of this fiscal debt is realized by drawing up and submitting the tax declaration 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 completing the name of the tax claim: 121 – Income tax for micro-enterprises 1% or 121- Income tax for micro-enterprises 3%.
3. Profit tax – established and due by those who do not fulfill the conditions for payment of the tax on the income of micro-enterprises and the share of profit tax, which is applied to the taxable profit, is 16%.
The practice of this fiscal debt is realized by drawing up and submitting the tax declaration 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 completing the name of the tax claim: 103 – Tax on profit / advance payments in the tax account on annual profit due by the Romanian PJ or with the registered office in Romania or 105 – Tax on profit / advance payments in the account of the annual profit tax due by the foreign PJ, following that, until March 25, including the following year, to file tax return – D 101.
4. VAT – the transactions regarding the activity of bets, carried out by the persons authorized, according to the law, to carry out such activities are exempted without the right of deduction.
We will return, in the following issues of the magazine, with the practices and procedures of taxation by types of gambling…
