The practice of gambling in 2023
Administrative and fiscal procedures 2023 in gambling activity
Article from the series “Gambling Practice“, by Anchidim Zăgrean, FedBet Vice President and President of ROMBET
In the year 2023, the organizers of the gambling are forced to take a series of administrative, financial or fiscal measures, of practical compliance, as a result of the obligation to implement the updated legal provisions, respectively GEO 77 of 2009, the Fiscal Code and the Code of Procedure Fiscal as well as those from Law no. 286 of 2022, and a summary of them looks like this:
A) In the case of the National Gambling Office (ONJN), gambling organizers must:
1) to submit a monthly statement, in which to highlight the income from gambling, in the form of a standard form, cf. Order 179 of 2018 of the President of ONJN, until the 10th of the following month, for the previous month, assigned by the company’s administrator, for traditional gambling and online or by an authorized person, for remote gambling;
2) to pay the administrative fees due, on the date and in the amount established by the special law;
3) to pay the annual contributions, for the promotion of compliance with the principles and measures regarding socially responsible gambling, within 10 days from the date of approval of the documentation, for the first year of the license and for the following years, until January 25 of each year.
In order to debureaucratize and simplify these requirements, it is imperative to introduce an online transmission system, with electronic signature, by filling in some smart PDF forms.
B) In the case of the National Tax Administration Agency (ANAF), gambling organizers are obliged to:
I) to declare and pay, according to the provisions of GEO 77 of 2009, updated, fees for obtaining the right to organize and exploit gambling, as follows:
1) License fee – for the organization of gambling, (including the license fee for activities related to gambling), and the declaration and payment of the license fee is made in advance, in a fixed amount, representing a condition for the entry into force of the license – at the level and terms stipulated in the law of gambling, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 66 of the Nomenclature, respectively, tax liability 536 of Declaration 100, representing 98.8% of the total tax due;
2) Authorization fee – for the exploitation of gambling – and the declaration and payment of the tax is done this way:
a) In advance, in a fixed amount for the entry into force of the authorization, at the level and terms provided for in the special gambling law, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 67 of the Nomenclature, respectively, tax liability 537 of Declaration 100, representing 98.8% of the total tax due;
b) Monthly regularization, depending on the income achieved, until the 25th of the following month, for the previous month, to maintain the validity of the authorization, as provided for in the special gambling law, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 65 of the Nomenclature, respectively, fiscal obligation 504 of Declaration 100, representing 98.8% of the total tax owed;
3. Monthly fee – calculated on the total of participation fees collected monthly, due to online gambling operators, until the 25th of the following month, for the previous month, as provided for in GEO 114 of 2018, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 77 of the Nomenclature, respectively, fiscal obligation 541 of Declaration 100;
4. Vice tax – for slot-machine gambling with unlimited winnings and the declaration and payment of the tax at the level and terms provided for in the special law on gambling, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 70 of the Nomenclature, respectively, tax liability 539 of Declaration 100, representing 98.8% of the total tax owed;
5. Access fee – for casinos and poker clubs and the declaration and payment of the tax at the level and terms provided for in the special gambling law, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 68 of the Nomenclator, respectively, fiscal obligation 535 of Declaration 100, representing 98.8% of the total tax due;
6. Promotion fee – represents 5% of the value of advertising contracts, as provided for in the special gambling law, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 77 of the Nomenclature, respectively, tax obligation 541 of Declaration 100, representing 98.8% of the total tax due;
7. The 1% income, intended for the Romanian Olympic and Sports Committee, as provided for in the special gambling law, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3, from position no. 84 of the Nomenclature, respectively, fiscal obligation 551 – The tax owed to the Romanian Olympic and Sports Committee from Declaration 100;
8. The income of 0.2%, intended for the National Paralympic Committee, as provided for in the special gambling law, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3, from position no. 85 of the Nomenclature, respectively, fiscal obligation 552 – Tax owed to the National Paralympic Committee from Declaration 100.
Through the adoption of Law 30 of 2022, a percentage of 98.8% of the fees charged, for obtaining the license to organize gambling and the authorization to operate games of chance, the access fee, as well as the other fees provided by the special law, constitutes income to the state budget and a percentage of 1% of these taxes is constituted as income of the Romanian Olympic and Sports Committee and 0.2% as income of the National Paralympic Committee.
With the exception of the authorization fee, with monthly regularization depending on the income achieved, the monthly fee, owed by the organizers of online gambling as well as the access fee, all other taxes, specific to gambling, have different deadlines for declaration and payment , as provided in the special gambling law.
A copy of the declarations or any other changes to them as well as the related payment documents will be sent to ONJN, within 5 days from the date of payment.
II) In the case of withholding tax at source, provided by the Fiscal Code, declaration and payment, on behalf of the winning participants, it is done as follows:
1. The tax for the payment of promotional prizes, for residents, it is calculated by deducting the non-taxable amount of 600 lei and then taxing with 10% the amount that exceeds 600 lei and the declaration and payment of the tax is made monthly, until the 25th of the following month, for the current month, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 to position no. 9 of the Nomenclature, respectively fiscal obligation 608 of Declaration 100.
An annual informative declaration is also submitted, for each winner, by the last day of February, for the previous year; cf. Order 179 of 2022, through Declaration 205;
2. The tax for the payment of promotional prizes, for non-residents, it is calculated without deduction, by taxing the amount won with 10% and the declaration and payment of the tax is made monthly, until the 25th of the following month, for the current month, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 at position no. 20 of the Nomenclature, respectively fiscal obligation 637 of Declaration 100. An annual informative declaration is also submitted, for each winner, by the last day of February, for the previous year, cf. Order 179 of 2022, through Declaration 207;
3. The tax due, as a result of participating in gambling, as a general rule, for both residents and non-residents, is calculated by applying the tax grid (3%, 20% and 40%), to the tax base, and the declaration and payment of the tax is made monthly, until the 25th of the following month, for the current month, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 10 and 21 of the Nomenclature, respectively fiscal obligation 621 and 638 of Declaration 100. An annual informative declaration is also submitted, for each winner, by the last day of February, for the previous year, cf. Order 179 of 2022 by Declaration 205;
An exception to the general rule of taxation of winnings from participation in gambling, for both residents and non-residents, is provided for earnings obtained from casinos, poker clubs, slot machines and lotteries (regardless of how they are organized: traditional activities or online activities), in that the amount of 66,750 lei, inclusive, for each gross income is non-taxable received, and the tax due for earnings with a value higher than the non-taxable ceiling of 66,750 lei, is determined by applying the scale to each gross income received by a participant, and the amount of 11,650 lei is deducted from the result obtained. The declaration and payment of the tax is made monthly, until the 25th of the following month, for the current month, cf. ANAF Order 587 of 2016, through Declaration 100, Annex 3 from position no. 9 and 21 of the Nomenclature, respectively fiscal obligation 621 and 638 of Declaration 100. An annual informative declaration is also submitted, for each winner, by the last day of February, for the previous year cf. Order 179 of 2022 through Declaration 205.
C) In the case of the National Cultural Fund, as provided by Law no. 286 of 2022, the organizers of gambling must calculate a share of 0.5% of the monthly income and the amount due is paid to the National Cultural Fund budget by the 15th of the following month, with a treasury payment order in account RO58TREZ70120E365000XXXX, opened at the Operative Treasury of Sector 1, on behalf of the Administration of the National Cultural Fund, with fiscal code 17966770. The monthly statement, regarding payment obligations to the National Cultural Fund, is mandatory and will be submitted either through the application available online at www.afcn-contributii.ro, either by e-mail, fax, post or directly at the headquarters of the Administration of the National Cultural Fund in Bucharest, located in Barbu Ştefănescu Delavrancea str. 57, District 1, until the 25th of the month in which the payment is made, for the previous month, cf. Order 2066 of 2011, updated with Order 2681 of 2023, of the Minister of Culture.
We’ll be back with other opinions in the next issue of the magazine…
