Romania’s parliament has approved a significant tax increase of gaming player winnings, which will take effect August 1. The new tiered withholding tax structure begins at 3 percent for winnings below RON 10,000 ($2,045) , followed by a 20 percent charge for winnings between RON 10,000-to-66,750 ($13,903). Winnings above RON 66,750 will be taxed at 40 percent.
The old tax rate was 1 percent on player winnings below RON 66,750, 16 percent on winnings between RON 66,750 – 445,000 ($112,436) and 25 percent for winnings above RON 445,000.
AOJND , Romania’s Remote Gambling Trade Association, warned that the new tax structure penalizes recreational players and will drive players to gray market and offshore platforms.
The government also plans to double the fee structure for license renewals from €120,000 to €320,000.
