12 percent tax on betting winnings regardless of the amount

The government today approved a proposal to amend the Personal Income Tax Law, introducing a single tax rate of 12 percent on all winnings in games of chance and betting and abolishing the previous non-taxable amount of 50 euros.

In their explanation, they stated that in practice it has been observed that some organizers divide the winnings among players into multiple tickets in order to keep the amounts below 50 euros and avoid paying taxes.

"The proposed regulation seeks to improve the system of taxation of winnings from games of chance by introducing a single proportional tax rate of 12 percent, instead of the currently applicable progressive taxation model of 0 percent, 10 percent and 15 percent. One of the main goals is to prevent abuses arising from the existing progressive taxation system. The introduction of a single tax rate reduces the possibility of tax avoidance through dividing winnings into smaller amounts. The goal is also to increase the efficiency and transparency of the tax system, and the proposed solution will ensure fairer treatment of all taxpayers. An important goal is also the stabilization and potential increase in budget revenues from taxes on winnings from games of chance, and the long-term goal is to strengthen tax discipline and trust in the tax system," the explanatory statement states.

According to the current solution, there was no tax on winnings under 50 euros, 10 percent tax on winnings between 50 and 1.500 euros, and 15 percent tax on winnings over 1.500 euros. The tax applied to winnings in betting and lottery games.

The Government also adopted amendments to the draft Law on Games of Chance, which extends the deadline for transitioning to a new method of granting the right to organize games of chance from the current concession to the right granted by ordinary contract.

The previous deadline was 270 days from the adoption of the law, which would have expired on May 11th, and is now being extended by six months to November 11th of this year.

"It is important to note that concession contracts are considered extended until the expiration of the aforementioned deadline. This would provide additional time for harmonization, ensuring the continuity of the organizers' business, as well as the further implementation of the Law adopted in August last year. The additional time will ensure the smooth harmonization of all organizers' systems, primarily in areas related to the regulation of business in the area of ​​prevention of money laundering and terrorist financing," the explanation stated.