How much and when to pay tax on winnings
According to the current Russian legislation, every citizen is obliged to pay tax on the income received.. In chapter 23 Tax Code of the Russian Federation indicates the amount in 13%. But the tax on winnings can be and 35%, if it's a stimulating lottery. IN 2017 year in the legislation there were changes, as a result of which a tax rate of 30%. Due to the fact presented, all the features of calculating tax on lottery winnings in Russia should be considered.
IN 2017 year was signed by Federal Law No. 354 of 1 january 2018 of the year. The new law specifies the separation of the types of drawings and lotteries, according to which it is determined, how much tax should the winner pay. At the moment there is 3 rates - 13%, 30% and 35%. 13% all persons pay on the winnings, who received a cash reward for participating in the lottery. 35% the bet applies to winnings from incentive lotteries. 30% everyone pays from the winnings, who is not a resident of Russia. (non-residents are people, who have Russian citizenship, but they live more time outside the country. The number of days is provided here - 183 during the following one after another 12 months. Less than the specified number of days entails an obligation to pay tax in the amount of 30%).
It is important to point out, how much tax on winnings is not paid at all. These are winnings up to 4 thousand
rubles. Remarkably, that all monetary awards for the last calendar year are taken into account.
Prize and winnings tax 2019 years up to 14 999 rubles are paid by the winners. In other words, they independently submit a declaration indicating their income. Further payment follows through the bank cash desk.
Tax on lottery and other winnings more than 15 000 rubles are paid independently by the organizers of the lottery. The winner receives the amount already minus the tax fee.
In determining the tax rate in the payment of the lottery, one should take into account its specifics and conditions of holding.
8 countries, in which zero income tax
Countries, who collect zero tax from their residents several. Moreover, some of them offer very interesting conditions for obtaining status, while others are rather interesting exotic, rather than a real option to choose.
for example, good example of a country, where to move for zero tax - this is the Bahamas. The only status fee is 1000 dollars annually. And if you don't want to pay even that amount, then maybe you should think about buying real estate - it will become the guarantor of your serious intentions.
In contrast, it is worth remembering the Brunei program: local rulers are already rich, therefore, absolutely not interested in getting new investors. But unless for the sake of "status" you can invest millions and get a residence permit in a small enclave. Do you need it?
Among other countries, which offer zero tax on profits you can think of the British Virgin Islands (need money for life and a guarantee fee); Norfolk Island (although it is more suitable for residents of New Zealand and Australia); Turks and Caicos Islands (require investment in new property or renovation from 300 000 dollars).
Vanuatu is worth mentioning as the island offers an interesting system: the more you invest, those for a longer period are given the status. A year is worth 89 000 dollars. And if more - and more years. In addition, this state allows resident investors to become citizens over time.
Topics, who prefers more sparkle in their life, countries such as Monaco and the Cayman Islands are worth checking out. The Cayman Islands are real, burnt offshore center, which is famous for the quality of its services and prices for them. Therefore, obtaining a status here costs from 150 000 annual income and investment in 250 000-500 000 dollars in real estate. The spread is due to the place of attachment: large or small islands.
It's hard to talk about Monaco at all - the richest people live here: businessmen, athletes, artists and many others. In particular, for that reason, to avoid income tax. But to get local, you need to have a serious stock: invest 500 000 euros for deposit and invest the same amount in real estate. Let's be honest, that finding something worth the price won't be easy ...
To summarize, then 8 countries, who do not collect income tax, require the following conditions for issuing resident status:
- Bahamas - pay an annual fee to 1000 dollars or buy property from 250 000 dollars.
- Vanuatu - pay 89 000$ or more and, depending on this, obtain a permit for a year or more.
- Monaco - invest on deposit 500 000 euro and 500 000 in real estate.
- Cayman Islands - Annual income from 150 000 dollars and buying real estate for 250-500 thousand.
- Norfolk Island - Especially easy for people in Australia and New Zealand, but other nations can also become residents here.
- Turks and Caicos Islands - must be invested in the construction or renovation of real estate 300 000 or 750 000 to local business.
- Brunei is a very large investment for the opportunity to live in a certain place.
- British Virgin Islands - have sufficient monthly income to live and pay 1000 dollars in the form of a guarantee fee.
Comparison of tax systems in Russia and America
There are many different options for calculating tax deductions. They can be influenced by marital and social status, order of annual income (including from its sources). Each country provides tax residents with certain bonuses and benefits, which allow you to pay taxes more accurately and, of course, in a timely manner.
It makes little sense to compare tax deductions in both countries - fundamentally different approaches, withholding and payment conditions. Thus, it is more logical to focus on wages after withholding all tax collections and deductions.
Comparison chart of US and Russian taxes
Income tax by country, infographics
Personal income tax (NDFL) called the main type of direct taxes, payable to an employee. In Russia, this tax is 13%. This fee is called the main source of revenue for the federal budget.. The share of income tax in the revenues of the Russian budget is slightly less 40%.
Income tax in England
Most of Great Britain is occupied by England, due to which the income tax rates are the same. Tax payment occurs 4 times during the tax year.
After 6 April the total amount of income tax is calculated. To receive the amount of tax payable, you must deduct tax benefits from income.
All residents of the country have their own tax-free minimum, changeable throughout his life.
Income tax in European countries
Highest income tax rates in such countries:
- Sweden 56,9%;
- Portugal 56,5%;
- Denmark 55,6%;
- Belgium 53,7%;
- Spain 52%.
Minimum income tax in Europe
The lowest income tax in such countries in Europe:
- Kazakhstan and Bulgaria (10%);
- Belarus - 12%;
- Russia - 13%;
- Lithuania - 15%;
- Romania and Hungary - 16%.
Income tax in South America
Let us consider the characteristics of income tax in South America using the example of Brazil and Chile.
Brazil also has a progressive income tax scale.. If the taxpayer's income does not exceed 15 084 Brazilian reais, then he is not obliged to pay tax. If the income is 15 084 – 30 144 Brazilian reais, then the tax rate is 15%, even higher income is taxed at the rate 27,5%.
In Chile, the income tax rate ranges from 5 to 40%. Any income of residents of the state is taxed, regardless of where they were received. To calculate the tax, the amount of non-taxable income and the gradation of amounts are determined monthly, from which a particular rate will be applied.
Income tax in other countries of the world
Income tax in some other countries of the world:
- Argentina - 9–35%,
- Egypt - 10-20%,
- Israel - 10-47%,
- India - 10-30%,
- China - 5–45%.
In some countries of the world there is no income tax at all: Andorra, Bahamas, Bahrain, Kuwait, Monaco, Oman, Qatar, Somalia, UAE, Uruguay.
The bookmaker remains a tax agent in case of winnings from 15 thousand. rubles
FROM 1 january 2018 year, amendments to the Tax Code came into force, regulating the procedure for taxation of winnings from participation in gambling, held in bookmakers and sweepstakes, in particular, in article 214.7 NK RF (Features of determining the tax base and calculating tax on income in the form of winnings, received from participation in gambling and lotteries).
The changes are enshrined in the Federal Law "On Amendments to Part Two of the Tax Code of the Russian Federation" dated 27.11.2017 № 354-FZ, which was signed by Russian President Vladimir Putin 27 November 2017 of the year.
According to the new rules, the tax agent determines the tax base for income, equal to or greater than 15 thousand. rubles in the form of winnings in gambling by reducing the amount of winnings, received upon the occurrence of the bet result, for the amount of the bet or interactive bet, serving as a condition for participation in the bet.
In this case, the tax agent calculates the amount of tax in respect of income in the form of winnings separately for each amount of winnings, which does not allow reducing the taxable base by the amount of rates, being a condition for participating in another bet (not that, in which there was a win), explained the lawyer of LLC "PL" Maria Lepshchikova.
In this case, the tax agent is a bookmaker. It is the bookmaker who deducts the tax and transfers it to the state, if the client's winnings are 15 thousand. rubles and above.
Then, that the amount of tax in respect of income in the form of winnings at the bookmaker's office, calculated separately for each winning amount, confirmed in BC "Marathon".
As the executive director of the First SRO of bookmakers Oleg Davydov noted, the rule of deducting tax on each winnings was reflected in the tax code and before 1 january 2018 of the year, but the adopted amendments only further clarified the taxation procedure, foreseeing, that the tax is determined from the difference between the winnings and the exact rate, on which he stepped.
That is, if you win more than 15 thousand. rubles, the bookmaker reduces the amount of winnings by the bet made by the player and withholds tax only from the difference received at the tax rate 13% (for tax residents of the Russian Federation) or at rate 30% for those, who lives in the Russian Federation less than 183 days for the next consecutive 12 months, explained Alexander Grigoriev, Project Manager of FBK-Legal.
If the gain is less than 15 thousand. rubles, the bookmaker will pay it to the client in full, and the player will have to independently report to the tax office and pay tax at the end of the year. "Thus, on winnings up to 15 thousand. rubles, the bookmaker ceased to be the player's tax agent, what is a novel ", - emphasized Mr. Davydov.
How to pay tax 13% from online poker
Tax payment consists of three stages: filling out the 3-NDFL declaration, sending declaration and payment.
If you have poker income in 2019 year, then you need to apply before 30 april 2020 of the year, and it should be paid before 15 july 2020 of the year.
Filling in 3-NDFL
For each year, the form of the declaration may change. Use the current tax return form for the current year.
There are several options for creating a declaration:
- Download the 3-NDFL form and fill it in manually;
- Install a special program;
- Through a personal account for a taxpayer.
To fill in the first pages of the declaration, general information on filling out is suitable. There are no special features for poker players.
Filling in the "Title Page"
Completion of "Section 1"
The fun begins in the applications when transferring income and taxes.
application 1 used to indicate income from sources in the Russian Federation.
And the application 2 needed to indicate income from sources outside the Russian Federation. If you receive withdrawals from poker rooms directly or through payment systems, for example Skrill, then you need an app 2.
For each arrival of a cashout from a room or payment system to a card of a bank of the Russian Federation, you need to fill out a separate sheet "Appendix 2". How many times has money been credited to the card, so many of these sheets.
An example of filling out an application 2
Decoding of filled fields:
- TIN - individual taxpayer number;
- 020 - instead of indicating the source of payment of income, you can specify the type of transaction performed. for example: "Winning gambling", "Winning at Borgata Casino in Atlantic City";
- 030 - The currency code is taken from the list of the all-Russian currency classifier. For a dollar it is 840;
- 031 - The code of the type of income is filled in from the list of income received from sources outside the Russian Federation. This is a different list than that, what about the income codes, received from the territory of the Russian Federation;
- 040 - We indicate the date of receipt of the transfer to a bank card;
- 050 - We indicate the currency code, which the Bank of Russia had on the date, which was indicated in 040;
- 060 - The amount of the received transfer to the card in foreign currency;
- 070 - The result of multiplying the received amount in foreign currency by the rate of the Bank of Russia. Then, what was indicated in 060 multiply by that, what was indicated in 050:12 051,36 x 64,61 = 778 638,46;
- 120 - We count 13% from the sum, indicated in 070. Round the result to an integer. Amount less 50 discard kopecks, and 50 kopecks and more rounded to the full ruble:778 638,46 x 0,13 = 101 222,99 = 101 223.
Submitting a declaration
The declaration is submitted to the tax office at the place of registration of the taxpayer.
The easiest way is to submit by mail in a valuable letter with a list of attachments. The filing date is the date the letter was sent.
You can also submit your return electronically.
Payment of tax
You can pay in different ways:
- Through your personal account on the FTS website;
- With the help of a special service;
- At the bank by paper payment order. To do this, you will need and fill it in by hand.
Italy: while only the lucky ones from the lottery pay
In Italy, gaming companies are literally "hung up" with all kinds of taxes. They pay taxes common to all companies - income and regional taxes., get licenses for a tidy sum, and then calculated for specific taxes - from 0,6% from revenue for online casinos to 20% in cash games. Bookmakers pay 3,5%. At the same time, players are still exempt from taxation.. true, lottery winnings in the amount of 500 euro 6% tax has already been imposed. Poker is next. There, you look, and it will reach bookmakers.
true, against the background of a very high tax burden, not all bookmaker companies decide to work in Italy. And players, respectively, also. Just a few months ago, the trial in the case of two Italians ended, Cristiano Blanco and Pier Paolo Fabretti. They placed their bets online with the bookmakers, officially registered in the EU, but not having an Italian license. The tax office tried to prove, that they are required to pay income tax on their winnings, since Italy received less from the unlicensed bookmaker. However, the European Court sided with the players, considering, that taxes from their participation in bets have already been paid by the bookmaker at the place of registration, in another EU country. And double taxation is illegal.
Real estate taxes
Real estate tax in the United States is provided for at the state and local municipal level. Talking about real estate taxes, often involve several related taxes.
Property Transfer Tax is paid by the seller after transferring the documents to the buyer for the ownership of the property. The amount is calculated at the assessed value of the property sold.
Property Tax is paid annually on all real estate (including land plots), in possession. Each state determines its rate.
Capital Gain Tax – actually, this is a capital gains tax, but it is directly related to real estate. Paid on the sale of property, the taxable base is the difference between the price of an immovable property upon purchase and the price of its subsequent sale.
Property stands alone, inherited or donated. In this case, the rates depend not only on the assessed value, but also on the degree of kinship of persons, between which the ownership of the property passes.
There are a huge number of different forms of reporting and tax returns in the United States., concerning the ownership of real estate or the transfer of ownership of it. The rates of these taxes vary greatly from state to state..
|American Corporate Services tax experts are ready to advise you on the correctness of filling out or take on the preparation of all necessary real estate tax returns, ensuring full compliance with IRS requirements.|