Romania’s new draft of its Fiscal Code contains a feature that would increase taxes on gaming withdrawals to as much as 40 percent.
The updated draft tax code was published by the Ministry of Finance. Smaller amounts of withdrawals—$13,980 or less—have been taxed at 1 percent, with larger amounts taxed at 25 percent. Under the new regime, the tax rate will start at 10 percent and incrementally move up to 40 percent per withdrawal.
The Association of Remote Gambling Organizations (AOJND) responded to the announced rate by declaring that it would lure players to gamble at illegal platforms. It estimated that online gaming platforms would pay half what they are now paying in taxes due to their customers fleeing to illegal operators.
AOJND President Odeta Nestor said in a statement: “I have often emphasized that Romania is a success story in terms of gambling legislation. But this situation depends on the ability of the authorities to maintain an attractive legislative and fiscal framework.”
