The practice of gambling in 2024
Administrative and fiscal procedures 2024 in gambling activity
Article from the series “Gambling Practice“, by Anchidim Zăgrean, FedBet Vice President and President of ROMBET
Starting with the entry into force of the new provisions contained in GEO 82 of 2023, gambling organizers are forced to take a series of administrative, financial or fiscal measures, for practical compliance, as a result of the obligation to implement the legal provisions updated, of GEO 77 of 2009, the Fiscal Code and the Fiscal Procedure Code, and a summary of them shows as follows:
A) In the case of the National Gambling Office (ONJN), gambling organizers must:
1) to communicate, within 5 working days from the date of conclusion, the contracts with the object of promoting brands, platforms, applications or gambling activities by placing advertising messages in localities and on public roads or through a television service, as well as any act that changes the value of the contract;
2) to submit a monthly declaration, in which to highlight the income from gambling and the amount to be paid, for the payment of the license and authorization fee, for each type of gambling separately, in the form of a standard form, cf. Order 179 of 2018 of the President of the ONJN , until the 10th of the following month, for the previous month, assigned by the company administrator, for traditional and online gambling or by the authorized person, for remote gambling;
3) to transmit to O.N.J.N. self-exclusion requests, within two working days from the date of registration, and the lists including the persons who, by internal decisions of the organizers, were declared undesirable, together with the reasons behind this measure, within 5 working days from the date of preparation or modification;
4) to pay the administrative fees due, on the date and in the amount established by the special law;
5) 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 undergraduate year and for subsequent years, until January 25 of each year.
In order to debureaucratize and simplify compliance with these requirements, it is imperative to introduce an online transmission system, with electronic signature, by filling in 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, the fees for obtaining the right to organize and exploit gambling, as follows:
1. License fee – it is declared and paid by economic operators organizing gambling, as well as by economic operators carrying out activities related to games of chance. The declaration and payment of the license fee is made in advance, in a fixed amount, this compliance representing a condition for the entry into force of the license, as follows:
a) for the first year, up to and including the 25th of the month following the one in which the documentation was approved;
b) for the next 9 years, 10 days before the expiration of the previous year.
The declaration of the license fee is made by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 66 of the Nomenclature, respectively, fiscal obligation 536 of Declaration 100, where the fact that this budgetary claim has another maturity date is checked and then the amount is filled in, which represents 98.8% of the total tax owed;
2. Authorization fee – it is owed by the economic operators, organizers of gambling games, and the declaration and payment of taxes is carried out in this way:
a) for betting games (fixed odds, mutual and in return), bingo games organized through the television network systems, remote gambling (including online lotto), the declaration and payment of the authorization fee is made in advance , this compliance representing a condition for the entry into force of the exploitation authorization, thus:
i. the amounts resulting from the application of the percentage of 21% (except bingo tv where the percentage is 23%), to the revenues estimated by the economic operator, for the first year of authorization, but not less than the minimum annual fee – until the date of 25 inclusive, of the month following the one in which the documentation was approved;
ii. if, during the authorization year, the revenues exceed the estimates, the annual authorization fee due will be recalculated by applying the percentage rate provided, on the actual revenues, accumulated since the beginning of the authorization period. The recalculation will be performed monthly, for the entire licensing period, starting with the first month in which the estimated results are exceeded. The actual accumulated revenues and the tax paid from the beginning of the authorization period, until the end of the month preceding the one for which the regularization is made, will be declared and paid by the 25th, inclusive, of the month following the one in which the organizer’s revenues were realized, for the entire licensing period.
The declaration of the authorization fee is made by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 65 of the Nomenclature, respectively, tax liability 504 of Declaration 100, the due date is the 25th, for the recalculation period, fill in the value, which represents 98.8% of the total tax owed;
b) for casino-type games, poker clubs and slot-machines, the declaration and payment of the authorization fee is made in advance, this compliance representing a condition for the entry into force of the authorization, as follows:
i. for the first month – up to and including the 25th of the month following the one in which the documentation was approved;
ii. for the other 11 months – the fee is paid in advance, respectively up to and including the 25th of the current month for the following month.
The declaration of the authorization fee is made by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 67 of the Nomenclature, respectively, fiscal obligation 534 of Declaration 100, and in the first month the fact that this budget claim has another maturity date is checked and then the date of 25 remains, for the recalculation period and the value is filled in, which represents 98.8 % of the total tax due;
c) for bingo games in arcades, tombola, poker festival, temporary games of chance as well as the Romanian National Lottery Company – for traditional lotto games – the declaration and payment of the authorization fee is made in advance, this compliance being a condition for entry in force of the authorization, as follows:
i. for the whole year, it is paid in full, up to and including the 25th of the month following the one in which the documentation was approved, and the Romanian Lottery National Company for the traditional lotto games, up to and including the 25th of March, for the current year.
The declaration of the authorization fee is made by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 93 of the Nomenclature, respectively, fiscal obligation 537 of Declaration 100, the fact that this budgetary claim has another maturity date is checked and then the amount is filled in, which represents 98.8% of the total tax owed;
3. Monthly fee – representing 2%, calculated on the total of participation fees collected monthly, is due, by online gambling organizers, it is declared and paid by the 25th of the following month, for the previous month, as provided for in GEO 114 of 2018.
The declaration of the monthly tax is made by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 77 of the Nomenclature, respectively, fiscal obligation 541 of Declaration 100, for the 25th, fill in the value, which represents 98.8% of the total tax owed;
4. Vice tax – is due monthly by the organizers of slot-machine gambling games, with unlimited winnings, as well as for video lotteries (VLT), and the declaration and payment of the tax at the level and terms stipulated in the special gambling law, as follows:
i. for the first month – up to and including the 25th of the month following the one in which the documentation was approved;
ii. for the other months – up to and including the 25th of each month, for the following month.
The declaration of the vice tax is carried out by all these taxpayers, cf. Order 587 of 2016 of ANAF, through Declaration 100, Annex 3 from position no. 70 of the Nomenclature, respectively, fiscal obligation 539 of Declaration 100, the fact that this budgetary claim has another maturity date is checked and then the amount is filled in, which represents 98.8% of the total tax due;
The access fee – is owed by those who operate casino-type games and poker clubs, 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 the Declaration 100, Annex 3 from position no. 68 of the Nomenclature, respectively, fiscal obligation 535 of Declaration 100, for the 25th, the value is filled in, representing 98.8% of the total tax due;
5. 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. 86 of the Nomenclature, respectively, fiscal obligation 553 of Declaration 100, the fact that this budgetary claim has another maturity date is checked and then the amount is filled in, which represents 98.8% of the total tax due;
6. The income of 1%, 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 – Tax owed to the Romanian Olympic and Sports Committee from Declaration 100, the fact that this budgetary debt has another maturity date is checked and then the amount is filled in, which represents 1.00% of the total tax owed;
7. 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, check the fact that this budgetary debt has another maturity date and then fill in the value, which represents 0.20% of the total tax owed.
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 gambling, 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 special monthly fee, owed by the organizers of online gambling, as well as the access fee, all other taxes specific to gambling has 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, provided by the Fiscal Code, the 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 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;
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 games 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 street no. 57, sector 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.
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