Romania switches to 2% deposit tax

The Romanian government has clarified that all gambling operators will now pay an additional 2% tax on deposits and not turnover, as had been previously proposed.

Published in the country’s official gazette, the order clarifies the calculation basis of this new additional tax, saying: “The monthly tax is calculated by applying the 2% rate to the total of participation fees cashed in every month according to the legal provisions in force.”

The order confirms total of participation fees cashed is defined as “any transfer from the players’ bank account or similar account to their game accounts on the gaming platform”.

Proposals to introduce an additional turnover tax for both egaming and land-based operators were under discussion in December.

At the time, a 10% tax rate was mooted, but was reduced to 5% for online operators and 3% for land-based operators following lobbying by Romanian operators. These rates were then revised again to a lower 2% rate based on turnover.

However the calculation basis has been revised a third time to one based on deposits and has now been formally introduced into law. The change was post-dated for 1 January 2019, meaning that the first payment of this tax will be due on 25 February.

Egaming operators already pay a 16% tax rate on gross gaming revenue. Collection of the additional tax will be supervised by the Romanian National Gambling Office.

The additional tax rate was introduced as part of a so-called “greed tax”, which targets the banking, retail, alcohol and tobacco industries in Romania, imposing new taxes in these areas as a way of furthering social reforms in the country.