What is important to know about the regulations applied by the Romanian Government, regarding cash prizes:
- cash prizes that are more than 600 RON are taxed with 10%.
- for a gain that exceeds the respective balance, the amount of 600 RON is not taxed, and the difference from the total gain is taxed with 10%.
For example, let's suppose the prize for 1st place is 5,000 RON. From this amount:
- 600 RON will be deducted
- the remaining 4,400 RON will be taxed with 10% (440 RON)
- therefore, the net amount that will be transferred to your account will be 600 + (4,400 - 440) = 600 + 3960 = 4,560 RON.