How lotteries are taxed in russia and the united states

What rate applies?

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Tax on lottery winnings in Russia depends on whether, what amount is given to the winner. It is from this value that a certain fee is paid. It depends on the status of the recipient of the money, as the rate is different for residents and non-residents.

The gain is represented by the citizen's additional income, therefore, personal income tax is paid from him:

  • 13 % charged to people, who are residents of the Russian Federation;
  • if the winner is represented by a non-resident, then he will have to transfer to the state 30 % of the received amount.

Additionally always 35 % paid with winnings, obtained as a result of participation in advertising games or various competitions. In this case, the status of the recipient is not taken into account..

for example, if a Russian person buys a lottery ticket or takes part in gambling or paid contests, then when receiving any income, he will only pay 13 %. If he is a participant in a television show or quiz, then he will have to transfer to the state 35 % of the received amount.

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The rates are the same for commercial or government lotteries and contests. High tax rate on lottery winnings 35 % set for different promotional events, held by a variety of malls or shops

With the help of such actions, organizations draw attention to their activities from a large number of potential buyers.

How lotteries are taxed in russia and the united states

How to report your winnings

To all the lucky ones, winners of any lottery from 4000 rub. to 15000 rub. you must declare this income. You need to do this yourself and no later than the deadline..

Declaration (form 3-NDFL) you can fill it in yourself or contact the relevant organizations for help. Indicate your data in the document, the amount of the winnings and the calculated amount of personal income tax. There are several ways to report your income:

  1. Visit the tax office in person. After receiving a consultation, independently fill out the document form and provide it to employees.
  2. Fill out the printed form at home and send it to the Federal Tax Service by mail with a valuable letter;
  3. Through the FTS website. To do this, you need to pre-register in your personal account. Submit the form electronically.
  4. Online through the portal of public services, if you are registered on it.

The first option is the most reliable and convenient for those, who reports for the first time. In this case, you can consult on the spot about filling in 3-NDFL and correct errors, if they are. The program for filling out the declaration and detailed instructions can be downloaded on the FTS website.

There you can also see an example of a receipt for tax payment.

For late filing of the declaration, they can be fined in the amount of 5% from the due fee, but not less than 100 rub.

Tax on lottery winnings in Russia

In Russian federation
most of the possible types of income are subject to taxation. They
types of income, from which the state does not need to pay anything, pretty clear
spelled out in legislation, but receiving prizes and gifts to them, behind a number
exceptions, not applicable.

Lottery winnings tax
in Russia calculated as personal income tax, which the, as
known, is 13% of the received amount. Respectively, if you won
1 one million rubles, then 130 you will have to pay thousand rubles to the state.

In the same time, according to
legislation, gifts worth less than 4 thousand rubles are not subject to personal income tax. Then
there is, if you won the lottery 2 thousand rubles, you don't need to pay anything.
But if you played three times in a year and won a total of 6 thousand
rubles, then you can subtract from 6 thousand rubles 4 thousand rubles, and the amount of tax
to win the lottery in this case will be 13% from 2 thousand rubles.

In Russia, right
only public authorities have lottery organizations, which
entrust the holding of the event to the company - the operator, therefore on the ticket
not only the name of the operator is indicated, but also the name of the organ
state power. Thus, tax on winnings in the Stoloto lottery
is 13% in all cases. The tax in the Gosloto lottery is also 13%. AND
from this amount you can always deduct 4 thousand rubles, non-taxable personal income tax.

But quite often similar
events are also held by commercial companies - to draw attention to their
activities, increase sales. These events have the status of promotions

Stimulating
lottery also includes tax, according to Russian law.

Tax rate on winnings
in the lottery in this case is 35%, but in some cases companies -
the organizers themselves act as an agent and pay all the necessary payments
for the recipient of the prize themselves.

Besides, if a person
is not a resident of Russia, he pays tax on lotto winnings in the amount of 30%
of the received amount. I.e, won 1 million rubles - pay 330 thousand
rubles.

What happens in case
evasion of payment, clearly demonstrates the story of a 44-year-old resident
Krasnoyarsk Territory, who last year became a defendant in a criminal case.
Having won 10 million rubles back in 2014 year, the man did not fulfill his
duties to the state. As a result, after four years in his attitude
opened a criminal case: because we are talking about a large size: he should have been
the state 1,3 million rubles. And this is not the only such case of a criminal
persecution, if we refer to judicial practice.

Paying tax on lottery winnings

Europe

Most European countries, including UK, Ireland and France, do not tax lottery winners. However, in some countries, winners are required to pay tax.

Country Tax rate
Spain prizes over 40 000 € tax is set 20%
Switzerland players pay 35% with winnings over 1 000 CHF
Portugal pay 20% if you win over 5 000 €
Holland tax is set 29% for amounts in excess 449 €
Poland players pay 10% from prizes exceeding 2280 zl
Slovenia winnings over 300 € are taxed at 15%
Italy pay 20% tax on winnings in excess of 500 €
Croatia in Croatia the tax is from 10% to 30% as the winnings increase with 750 HRK

North America

Lottery winnings are tax-free in Canada. In the United States, the starting federal tax is 25%, if the prize exceeds 5 000 $, and additional amounts are charged depending on the player's annual income when filing a tax return.

For players, possibly, will have to pay additional taxes depending on whether, in which state did they buy the ticket. Certain states - California, Florida, New Hampshire, Ruerto Rico, South Dakota, Tennessee, Texas, United States Virgin Islands, Washington State, Wyoming - no state tax on lottery winnings, however, the rest of the states levy tax.

Tax rate the state
2,9% North Dakota
3% New Jersey
3,07% Pennsylvania
3,4% Indiana
3,75% Illinois
4% Colorado, Missouri, Ohio, Oklahoma, Virginia
4,25% Michigan
5% Arizona, Iowa, Kansas, Louisiana, Maine, Massachusetts, Mississippi and Nebraska
5,75% North Carolina
5,99% Rhode Island
6% Georgia, Kentucky, New Mexico, Vermont
6,5% West Virginia
6,6% Delaware
6,9% Montana
6,99% Connecticut
7% Arkansas, South Carolina
7,25% Minnesota
7,4% Idaho
7,75% Wisconsin
8% Oregon
8,5% Washington (D.C)
8,75% Maryland
8,82% New York

South Africa

South African Lottery prizes are tax-free, therefore players, who won the jackpot in such games, как South Africa Lotto, South Africa Powerball или South Africa Pick 3, receive the original amount in full.

Australasia

Lottery winnings in Australia are fully payable and tax-free. New Zealand also does not require players to pay taxes on lottery winnings.

Greece: gain from 500 euro - 20%

Greece also has a monopoly on the betting business, true, not legislative, and the actual. Local Community Football Prediction Organization (OPAP) owns the only bookmaker license, issued right up to 2030 of the year. At the same time, all attempts to obtain a license from William Hill, Sportingbet and some other well-known companies have not been successful, despite all attempts to appeal to European open market law. A year ago, under pressure from the EU, the government was forced to agree to the transfer of OPAP to the ownership of a private investor, but this has not yet led to market liberalization. Moreover, with 2013 a new tax system was introduced. If earlier players paid 15% from every winning bet, the scale is now progressive. Less wins 100 euros are not taxed, from 100 to 500 euros - subject to 15% tax. Player, earned more on the bet 500 euros, will give to the state 20%. By itself, due to this, the market experienced a recession, many players switched to the "gray" field - began to play with European online bookmakers, who do not withhold taxes from them. true, this does not exempt players from paying income tax. But here, as in the case of personal income tax in almost all countries, the indication of income from the game in the declaration must be carried out by the citizen himself.

Playing international lotteries

If you are playing the international lottery online, you, possibly, have to pay taxes. If you use a concierge service (or messenger service), which buys tickets on your behalf, you pay tax depending on where you bought your ticket. If you win the country lottery, in which lottery winnings are taxed, and live in the country, which also deducts a percentage of the winnings, usually, you will have to pay tax once, given that, that the countries have concluded an agreement on the avoidance of double taxation. You should consult with a financial professional, do you meet these conditions.

If you are using a betting service and are placing bets on the outcome of the draw, but don't buy a ticket, the rules of your country of residence apply.

Where to get lottery winnings

It all depends on the conditions of the program. You must read them carefully..

Man receives a lottery win

It is worth considering the main opportunities for getting money, depending on the type of lottery.

Table 2. Ways to get money after winning the lottery.

Lottery type How to get your winnings
Online and international lottery
  • bank card;
  • Bank account;
  • electronic wallets, who have passed identity verification.
All-Russian lottery
  • at ticket offices;
  • to a bank card or account;
  • at the post office.
Regional lottery

The situation is a little more complicated with receiving a win, when it comes to a car or apartment. Everything must be documented for the new owner. Therefore, it is required to personally arrive at the point of issue of prizes with the required documents. You can also ask for help from a trusted person., but he must have a general power of attorney certified by a notary. It is worth noting, that it is worth contacting the lottery operator in advance, to clarify, what documents you need to take with you.

With the receipt of an apartment, certain nuances may arise

Usually, you only need to have a passport with you for personal identification, and a winning ticket, to confirm, that a citizen is eligible for a prize.

What to do, if the win is too big

The tax rate does not depend on the size of the win.

But, if the win is over 15 000 Р, possibly, you do not have to account for it and pay tax yourself. You will be reported and paid, if you won a Russian lottery or a legal bookmaker. Promotions organizers will report and pay for you regardless of the size of the win.

You won the lottery 1 000 000 Р. You don't have to submit a declaration and pay nothing. In this case, the lottery organizer is the tax agent. He will pay you 870 000 R and will report to the tax.

You have won the casino jackpot - 10 000 000 Р. To 30 April next year you declare them yourself, and to 15 July pay 1 300 000 Р. If you lose money back, you owe the state. Therefore, it is better to immediately postpone the amount of taxes and not touch it until the moment of payment. for example, open a savings account: then you will earn some extra money on interest.

Sanctions for non-payment of tax

Transport tax

Attention! Failure to pay or incomplete payment of tax may result in a fine of 20% of the unpaid fee. If evidence is presented, that the player deliberately avoided the contribution, its size will be increased to 40%

Besides, in certain cases, even criminal liability may arise.

For instance, in 2020 year a criminal case was initiated under h. 1 Art. 198 UK RF (large-scale tax evasion on an individual) in relation to a resident of the Krasnoyarsk Territory, who won the lottery back in 2014 year 10 RUB million. Having received money, the player did not pay tax 1,3 RUB million. The maximum sentence is one year in prison.

Undoubtedly, nice to get a win, especially large. But fans of gambling shouldn't forget about paying taxes.. Otherwise, after winning, there may be difficulties with the law..

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