Romania introduces 20% back tax licensing rule
Operators looking to obtain a new Romanian licence must first return one fifth of revenues obtained from the country since 2009
Operators eyeing-up entry to Romania’s soon-to-be regulated market have been dealt a major blow after the country’s government yesterday voted in favour of a ‘back tax’ amendment, a measure which demands operators pay millions of Euros in retrospective taxes.
As part of the legislative process for its Gambling Act, the country’s Chamber of Deputies approved a number of changes in passing the framework, including the requirement that operators return 20% of revenues derived from the country since online gambling was banned in 2009.
News of the back tax requirement could have a negative impact on the number of operators applying to enter the market with a number of senior executives having told eGaming Review they would now reconsider the commercial value of obtaining a licence.
Romania’s Monitoring Committee of the National Office of Gambling (NOG) has been given the responsibility of calculating the sum of tax owed by each operator, with firms having to potentially open themselves up to a financial audit process.
Operators will be given a 90-day grace period in which to pay back the sums due and be exonerated from unlicensed activity. Failure to do so will see them placed on Romania’s black list, a measure which will prevent them from obtaining a Romanian licence.
How much the government expects to recoup in taxes from this new measure is so far unclear however the president of the NOG earlier this year told local media that the new regime would raise 200m, although failed to specify the exact source of the money.
The law is currently held in standstill until the end of the week, up until which point the Act may be appealed to the country’s Constitutional Court. If no appeals are lodged the Act will be sent to the Romanian president for final sign-off.