Company Y is the Romanian legal entity, established according to Law no. 31/1990 regarding the companies that conduct the accounting according to Regulation of the Ministry of Public Finance (OMFP) 1802/2014. The company holds a license issued according to Emergency Ordinance (OUG) no. 77/2009 on gambling, for the operation of a slot machine. In order to enter the game room, the amount of 10 lei is paid, representing the access ticket to the game device. The issuance of tickets and receipts from individuals are taxable income to the company, payments to individuals being considered expenses, and the earnings of the individual are in the field of taxation.
Players benefit from a non-taxable amount of 600 lei / day.
Accounting for receivings from individuals:
5311 ”House in lei” = 704 “Income from services provided”
For the company, the income from gambling is subject to income tax, according to art. 75-77 of the Fiscal Code with a tax percentage of 25%
Accounting for expenses earned by players:
6588 “Other operating expenses” = 462 “Miscellaneous creditors”
Accounting for withholding tax:
462 “Miscellaneous creditors” = 446 “Other taxes and duties”
Registration of payment to players, after withholding tax:
462 ”Miscellaneous creditors” = 5311 ”House in lei”
Registration of tax payment
446 “Other taxes and fees” = 5311 “House in lei”
The forms regarding the record of receivings and payments for these types of games of chance are provided in annexes 8a-8b of Government Decree (HG) no. 870/2009, for the approval of the norms for the application of OUG no. 77/2009 on gambling. The most used form is “The situation of daily receivings from the operation of slot machine systems”.