Practica jocurilor de noroc

The practice of gambling in 2020

Continuation of the article from the previous issue of the magazine…

Taxation of slot-machine gambling organizers in 2020

Article from the series „Gambling practice”, by Anchidim Zagrean, vice-president ROMBET

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 payers, with the withholding tax regime, are obliged to calculate, withhold, pay and declare the withholding tax, up to and including the term of its payment.
Taxpayers with withholding tax are required to file a tax return and withholding tax return for each beneficiary of income with the competent tax authority until January 31 inclusive of the current year for the expired year, which 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 slot-machine gambling organizers, include:
a) The tax on salaries and assimilated to them – in the amount of 10%, applied to the tax base – and the practice of establishing the tax claim is achieved by drawing up and submitting the Tax Return no. 112, until the 25th of the following month, according to Order no. 1942, of May 12, 2020, for the approval of the model, content, method of submission and management of this declaration;
b) The dividend tax – in a rate of 5% applied to the tax base – and the practice of this tax 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 from dividends distributed to individuals;
631–Income tax from dividends obtained from Romania by non-residents;

c) Income tax from prizes and competitions – income in the form of 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 made 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: 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 scale of taxation on each gross income received by a participant, from an organizer or payer of gambling income: up to 66,750, inclusive , by 1%; over 66,750 – 445,000, inclusive, with 667.5 + 16% for what exceeds the amount of 66,750 and over 445,000 with 61,187.5 + 25% for what exceeds the amount of 445,000. The incomes obtained as a result of the participation in the games of chance, characteristic of the slot-machine type games, under the value of the non-taxable amount of 66,750 lei, inclusive, made by the taxpayer for each gross income received, are not taxable. The verification of the classification in the non-taxable ceiling is performed at each payment, regardless of the type of game from which the respective income was obtained. If the gross income received for each payment exceeds the non-taxable ceiling of 66,750 lei, inclusive, taxation is performed separately from the income obtained from participating in other types of gambling. 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 D 205, for resident income beneficiaries and D 207, for non-resident income beneficiaries, as provided in ANAF Order 48 of 2019.

The practice of gambling 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. 1942, of May 12, 2020, for the approval of the model, content, method of submission and management of this declaration.

2. Income tax on micro-enterprises – 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 – Income tax on micro-enterprises 1% or 121- – Microenterprise 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 claim: 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 to deduct.

We will return, in the following issues of the magazine, with the practices and procedures of taxation by types of gambling …
The practice of gambling in 2020