Ministry of Finance :: Tax on Gambling Activity

Tax on Gambling Activity

Tax on Gambling Activity

The tax treatment of gambling activity is regulated in Articles 219 to 247 of the Corporate Income Tax Act.

Tax on gambling activity is levied on:

Gambling activity of games where the bet consists in the charge for telephone or another electronic communication service, which is regulated in Articles 235-240 CITA.

Scope of taxation	The tax is levied on the gambling activity of games where the bet consists in the charge for a telephone or another electronic communication service. This tax shall be final.
Taxable Persons	The organizers of games of chance where the bet consists in the charge for a telephone or another electronic communication service.
Taxable Amount	The increase in the charge for the telephone or another electronic communication service.
Tax Rate	15 per cent
Declaring of bets made and of tax	The organizer of the game of chance shall declare the bets made and the tax due under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said organizer on or before the 10th day of the month succeeding the month of conduct of the games, by means of a return in a standard form. Where the organiser of the game of chance is a non-resident legal person carrying out an activity through a permanent establishment in the country, the first return for the relevant year shall state the identification data of the owners, shareholders or partners in the non-resident legal person and the amount of the participating interest thereof, where the amount of the said participating interest exceeds 10 per cent. The operator of the telephone or another electronic communication service shall declare the bets made and the tax due under this Section to the National Revenue Agency territorial directorate exercising competence over the place of registration of the said operator on or before the 10th day of the month succeeding the month of conduct of the games, by means of a return in a standard form.
Tax Remittance	The tax on gambling activity under this Section shall be withheld and remitted by the operator of the telephone or another electronic communication service on or before the 10th day of the month succeeding the month of conduct of the games. The operator of the telephone or another electronic communication service is obligated to make sure that the organizer of the game of chance has obtained authorization from the National Revenue Agency and to present to the National Revenue Agency territorial directorate the contract whereunder the said operator receives bets, with an incorporated clause on the increase in the charge for the telephone or another communication service.

2. Gambling activity of slot-machine games and gambling casino games, which is regulated in Articles 242-247 CITA.

Scope of taxation	The tax is levied on gambling activity of slot-machine games and gambling casino games. This tax shall be final.
Taxable Persons	The organizers of gambling activity of slot-machine games and gambling casino games.
Amount of tax	· in respect of a slot-machine at a gambling hall and a gambling casino, respectively, each player's place there at: BGN 800 per quarter; · in respect of a roulette at a casino per gambling table: BGN 22,000 per quarter for each gambling table; · in respect of any other gambling equipment at a casino: BGN 5,000 per quarter for each gambling equipment. In case of suspension of the activity in order to implement an administrative act issued in accordance with Chapter Two, Section Five of the Health Act, the respective tax shall be due proportionally to the days of the quarter during which the activity has not been suspended.
Declaring the tax	The tax is declared by submitting a tax return in standard form not later than the 15th day of the month succeeding the quarter. Where the taxable person is a non-resident legal person carrying out an activity through a permanent establishment in the country, the first return for the relevant year shall state the identification data of the owners, shareholders or partners in the non-resident legal person and the amount of the participating interest thereof, where the amount of the said participating interest exceeds 10 per cent. The tax return shall be submitted to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.
Tax Remittance	The tax is remitted within the time limits for its declaring.

Under Article 242(2) of CITA the gambling activity of games on gambling machines and games at a gambling casino, organised online, shall be subject to corporation tax.

Record keeping

In pursuance of Article 219 (1) of the Corporate Income Tax Act, the taxable persons shall be obligated to keep detailed records and shall store information, which shall be sufficient for establishing their liabilities hereunder by the revenue authorities of the National Revenue Agency.

The taxable persons shall submit an annual activity report in the period between 01 March and 30 June of the following year to the National Revenue Agency territorial directorate exercising competence over the place of registration of the taxable person.

Sanctions

In accordance with Article 9 of the Corporate Income Tax Act, interest according to the Interest on Taxes, Fees and Other State Receivables Act shall be due on any taxes which are not remitted when due.

In accordance with the provisions of Article 261 of the Corporate Income Tax Act, any taxable person, who fails to submit a tax return under this Act, who fails to submit any such return when due, or who fails to state or misstates any particulars or circumstances leading to underassessment of the tax due or to undue reduction, retention of or exemption from tax, shall be liable to a pecuniary penalty varying between BGN 500 and BGN 3,000. Any repeated violation shall be punishable by a pecuniary penalty varying between BGN 1,000 and BGN 6,000.

According to the provision of Article 276 of the Corporate Income Tax Act, any taxable person, who fails to fulfil its obligation under Article 219 (5) (submission of an annual activity report), is liable to a pecuniary penalty varying between BGN 500 and BGN 2,000 and, upon a repeated violation, to a pecuniary penalty varying between BGN 1,500 and BGN 5,000.

In accordance with the provisions of Article 278 of the Corporate Income Tax Act, the written statements ascertaining the violations shall be drawn up by the authorities of the National Revenue Agency, and the penalty decrees shall be issued by the Executive Director of the National Revenue Agency or by an official authorized thereby. The ascertainment of violations, the issuing, appeal against and enforcement of the penalty decrees follows the procedure established by the Administrative Violations and Sanctions Act.