New tax levels for gambling and lottery winnings in Romania

Several taxation changes are in the making for gambling and lottery winners in Romania. The state plans to impose a tax on gambling gains below RON 600 – or some EUR 133, the threshold below which such gains are tax free under the current law. The threshold will however be kept for revenues from prizes. Other changes are in plan for gambling and lottery gains: the 25% flat tax for such gains will be replaced by three progressive taxation levels applied to all gains from a gambling organizer within a day. The tax will be imposed even if the gambler loses the money the next day, according to a draft Emergency Ordinance that would alter the Fiscal Code, quoted by Mediafax. Lucky winners used to get only 75% of their net gains, but under the planned change, a 1% tax will be applied to all amounts below the equivalent of EUR 15,000 cashed by a gambler from an organizer. Above this amount, a 16% tax will be applied to such gains, and a 25% tax for all gains above EUR 100,000. For all those who win more than EUR 15,000, the gambling activity organizer has to declare winnings to the state, and keep nominal record of such high value winnings. For online gambling, slot machines, draws and poker festivals, the tax on winnings will no longer be kept and paid by the organizers. Instead, winners will be paid their winnings in full and will have to declare revenues themselves each fiscal year. The state will then decide if they will pay the 1%, 16% or 25% tax. editor@romania-insider.com