There is no legal basis for the organizer of games of chance to assume the tax liability on behalf of the person who made a profit, nor for the payment to be made without prior calculation and withholding of tax. Any other action constitutes a violation of legal norms, the Tax Administration told "Vijesti" in response to questions regarding the dispute over the calculation and payment of profit tax.
They also stated that their officials will begin punishing those organizers who violate the law as soon as possible, reminding that fines can amount to up to 20 thousand euros.
The amendment to the Personal Income Tax Law, which introduces a new method of calculating tax on winnings in betting and lottery games of chance, came into force on January 1. There is no tax on winnings up to 50 euros, the tax on the portion from 50 to 1.500 euros is 10 percent, and the tax on amounts over 1.500 euros is 15 percent.
However, only three operators have started to implement the law and are deducting the tax from players' winnings, while the remaining 35 operators have not done so in the past 12 days. Several operators who do not implement the law are publicly announcing that they will not deduct the tax from winnings but will take it on themselves, thus trying to take a share of the players from those who implement the law.
"As the Ministry of Finance previously announced in its official statement regarding the proper calculation of tax on winnings from games of chance, the Law on Amendments to the Law on Personal Income Tax, which applies from January 1, 2026, clearly stipulates that personal income tax is calculated and withheld from the realized profit, upon each payment, by the organizer of games of chance. In accordance with the current legal provisions, there is no legal basis for the organizer to assume the tax liability on behalf of the person who made the profit, nor for the payment to be made without prior calculation and withholding of tax. Any other action constitutes a violation of legal norms," the Tax Administration told "Vijesti".
The Tax Administration is responsible for supervising the calculation and payment of taxes according to the law, and its inspectors are also responsible for imposing penalties for violations of the law.
"Tax Administration officials are already working on processing cases of non-compliance with legal norms in this area, and measures and actions within their jurisdiction will be taken as soon as possible, in accordance with the prescribed procedures. We would like to remind you that significant fines for legal entities, in the amount of 2.000 to 20.000 euros, are foreseen for irregularities in the calculation and payment of taxes, and that any attempt to evade the application of the law will be sanctioned. Tax will, in accordance with legal norms, be calculated and collected from all parties, i.e. taxpayers, in accordance with the law. The Tax Administration will continue to intensify supervision of this area, and in the event of continued violations of the law, actions will be taken in cooperation with other institutions with the aim of protecting fiscal discipline, fair market conditions and legal business operations of all participants," the Tax Administration was told by "Vijesti" from the Tax Administration.
The law stipulates that the tax calculation and its amount in the event of a win shall be stated on the ticket itself when it is printed. The win is considered the difference between the amount of the individual payment (on the ticket) and the win based on that payment. According to the law, tax will be deducted when winnings are paid out, regardless of whether they are paid in cash, to a bank account, to the player's account with the organizer, or when the winnings are used to continue playing.
The state planned to generate three million euros in revenue from this tax. In addition to the lost revenue to the state, the fact that most organizers did not start calculating taxes at the same time leads to distortions of competition and fair market conditions, which the Tax Administration now mentions in its responses.
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