Lotto winnings tax

Us lottery tax

Any winnings less 15 thousand rubles are taxed?

If the client of the BC within one calendar year did not make any withdrawals for more than 4 thousand rubles, then the player does not have tax obligations to the state. In other words, once a year, the player may not pay tax on winnings until 4 thousand. rubles.

“When calculating the amounts of tax, income in the form of the value of winnings is not subject to personal income tax., not exceeding 4000 rubles, received, in particular, by gambling participants for the tax period for (item 28 of Art. 217 NK RF)», - told the Federal Tax Service.

note, what are we talking about cumulative gains. That is, in that case, if you play in several bookmakers, then the transactions for withdrawing funds from gaming accounts are summed up

"When calculating the amounts of personal income tax on the basis of clause 28 articles 217 Tax Code of the Russian Federation is not subject to taxation income in the form of the value of winnings, not exceeding 4000 rubles, received by gamblers during the tax period in aggregate from all organizers of gambling, including bookmakers. If each tax agent does not withhold tax on the amount of income when paying a taxpayer income in the form of a win, not exceeding the established size (4000 rubles) for the tax period, but at the same time, in aggregate for such income, received during the tax period from all tax agents, the set size will be exceeded, taxpayer based on subparagraph 4 paragraph 1 articles 228 Tax Code of the Russian Federation independently calculates the amount of tax, payable to the relevant budget, OK, established by article 225 NK, based on the amount of excess, with which no tax has been withheld by tax agents, and also submits a personal income tax return to the tax authority at the place of its registration (form 3-NDFL)», - explained the "Rating of Bookmakers" in the Federal Tax Service.

It means, what is the tax base in the case of multiple wins (withdrawals) less 15 thousand rubles, will be accounted for in aggregate less 4 000 rubles.

Tax equal or higher 15 000 rubles

If you're a little more fortunate, and the value of the lotto prize was more than 15 000 rubles, government fees are paid by the lottery organizer. Keep in mind, that sometimes the organizers of the draws promise a high win in advance, so that you get a "clean" round sum after all fees have been paid.

Therefore, if the firm, stimulating lottery, paid you 1 million instead of promised 1,5 million - there is no point in accusing her of fraud.

Everything is exactly the opposite - the organizer took care of, so that in the future you do not have to suffer and draw up declarations yourself. Thanks to the efforts of such an organizer, you can safely spend the amount won in the lottery at your discretion.

How to calculate the net winnings in a lotto using a simple example, which you get your hands on:

If you receive a prize of value 40 000 rubles, will be taxed only 36 thousand of the total. Further 36 thousand should be multiplied by 0,13, it will turn out 4680 rubles. This is the payout amount, which must be subtracted from 36 thousand.

As a result, you will receive an amount of 31 320 rub.

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:

  1. Download the 3-NDFL form and fill it in manually;
  2. Install a special program;
  3. 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:

  1. Through your personal account on the FTS website;
  2. With the help of a special service;
  3. At the bank by paper payment order. To do this, you will need and fill it in by hand.

Poker Tax Reality & Myths

One of the oldest myths, what a poker player should pay 35% taxes. This is not true: 35% applies only to winnings in promotional lotteries and promotions. Regulates this article 224 NK RF. In it, income from poker falls only under the first paragraph of the article, where is the tax 13%.

If this is your first time paying taxes, then the tax office may want to check your bank account for tax-deferred income. And then she can ask you for the past years. In an interview with a specialist in the field of international tax optimization, Julio discusses how to minimize such risks.

Pay attention to the rules for applying the statute of limitations in 3 of the year. This period starts from the moment, when the tax office noticed a violation

And if the tax authorities nevertheless find undeclared income and initiate a criminal case for evasion, this will threaten at least a fine, and in the worst case - a prison term. You can learn more about this in a recent article on Pokeroff.

It also tells about, that the tax authorities began to use a special program to control the movement of money in bank accounts. Its purpose is to exercise control over all gray schemes for taxpayers to avoid paying taxes..

US income tax

Taxation has its own strict system, which includes various laws, regulations, decisions and decisions. Thanks to it, a high standard of living of the population in the United States is ensured.

Tax structure for budgeting in the United States

Citizens of the country have been participating in these processes since their student days. It is rather difficult for migrants to understand the structure of this system.. The main tax document is the Internal Revenue Code, it contains the full texts of all laws on this topic. Also, the code allows the treasury to adopt its own regulations.: these regulations must support the provisions of the code.

For those, who are not familiar with the structure of the US economic system, you need to understand the following points:

  • Almost all fees and deductions are differentiated;
  • The tax period lasts for a calendar year, that is, with 1 january 2020 and to 31 December 2020;
  • In the current 2020 year, Americans and green card holders will pay a tidy sum to the treasury - about 5 trillion $;
  • Filling out a tax return takes a lot of time for the whole country;
  • In total, Americans pay nearly a hundred different fees throughout the year..

What is taxed:

    • Air travel and air transportation.
    • Use and consumption of biofuels.
    • Building.
    • Registration and liquidation of enterprises.
    • Growth of financial savings.
    • Tobacco products.
    • Legal costs.
    • Recycling.
    • Registration of pets.
    • Driver's license.
    • Medical insurance.
    • Medicare.
    • Social gathering.
    • Environmental fee.
    • Inheritance rights.
    • Excise taxes on full insurance packages.
    • Corporate profit.
    • Income tax.
    • Unemployed tax.
    • Fishing licenses.
    • There is a toilet flush fee in Maryland.

Detailed map of Maryland

  • Food.
  • Franchise.
  • Rubbish.
  • Gasoline.
  • Gifts.
  • Weapon license fee.
  • Disposal of hazardous waste.
  • Use of motorways.
  • Hotels.
  • Hunting.
  • Import.
  • CHI program.
  • Inheritance tax (different from inheritance tax) .
  • Use of harmful substances.
  • Inspection.
  • Insurance payments.
  • Diesel fuel.
  • Inventory.
  • Early termination of the IRA program.
  • Internal revenue collection.
  • Internal income penalties.
  • Library collection.
  • Car numbers.
  • Alcohol.
  • Municipal corporate fee.
  • Municipal school fee.
  • Municipal unemployment tax.
  • Luxury (elite tax) .
  • Wedding tax.
  • Medicare Participation Collection.
  • Using both Obamacare and Medicare.

It looks like a medical insurance card in the USA

  • Obamacare supplement fee.
  • Parking.
  • Delivery of documents.
  • Licensing of work.
  • Property and real estate.
  • Vans.
  • Opening a new company.
  • Road checkpoints.
  • Sales.
  • Work without hiring.
  • Sewer collection.
  • Septic collection.
  • Provision of services.
  • Social security and social programs.
  • Men at work.
  • Arrangement of sports stadiums.
  • State organizations.
  • State income tax.
  • Staff fees for parks.
  • Collection SUTA.
  • Solarium.
  • Emergency.
  • Excise tax on telephone communications.
  • Federal tax on telephone service structures.
  • Low Intensity Phone Side Charge.
  • Local telephone charges and TUA tax.
  • Tires and their disposal.
  • Traffic rules and fines.
  • Utilities and Operations.

This is not a complete list of tax deductions., fines and fees, which Americans pay, this is just an average list of those positions, which are present in the majority declarations.

Unlike the countries of the post-Soviet space, America obliges every citizen to file a tax return. Migrants often experience, it's too hard; there are accountants for this case, economists and lawyers, who provide advisory services in relation to the declaration.

Can the organizer pay tax in advance?

Having answered the question, is lottery winnings taxable, payment terms become unclear. The main issue remains the sequence of payments to the state in the amount of 15 thousand. rubles by the organizers. In this case, the following factors must be taken into account:

  • lottery organizers must comply with all the rules for its conduct, approved in the Government Decision No. 338 of July 2004 of the year;
  • to obtain permission, you must submit a package of documents, which is presented in article 6 ФЗ-№138;
  • if an incentive lottery is planned, it is necessary to send a notification to the Tax Service in accordance with article 7 ФЗ-№138.

US gambling tax

canceled by the US Supreme Court

The country does not provide for a single tax rate for the gambling business - the tariffs are set by each state individually. At the federal level, there is a tax on winnings of up to 35% from the sum. In addition to the federal rate, each state has its own rate. In New Jersey, she is the tallest - 10,8%. Tax applies to any winnings, including lotteries. Foreigners, lottery or casino winners, must pay 30% to the US treasury.

In the famous Las Vegas, Nevada, owners of three types of licenses are engaged in gambling business, allowing:

  • install slot machines in other people's premises (bars, restaurants) under a special license;
  • open your own game room, in which no more 15 automata, under limited license;
  • place gaming tables and machines in the room, or only machines under an unlimited license.

Interesting:

The US license specifies the number of tables and machines allowed

Besides the casino operator, all specialized specialists are subject to licensing, working in the institution - croupier, dealers, managers. Waiters do not need permission, bartenders, cleaners, maids, others In the latter case, the procedure for obtaining a permit is difficult: the state creates a commission, investigating the feasibility of starting a business and estimated budget revenues in the next few years in the form of tax revenues.

The type of license directly affects the size of bets, imposed on the objects of taxation of the gambling business. Limited license holders pay annually $250 for each slot machine and quarterly on a progressive scale of taxes depending on the number of "one-armed bandits":

  • from one to five slots - $81 for every;
  • for six - by $91 for each and further increasing;
  • for eight - by $103,5;
  • for ten - by $110;
  • over fifteen - by $121.

Unlimited license holders pay casino tax, gross income on a progressive scale, gathering for shows, as well as annual and quarterly fees from each installed table and machine. Rates are higher here, than limited license holders. for example, if in the institution 10 automata, then you have to lay out $750 quarterly for each and $6 thousand. annually.

Gambling tax rate, gross income of a gambling establishment, grows with the amount:

  • with income up to $50 thousand. rate 3,5%;
  • to $84 thousand. – 4,5%;
  • over $134 thousand. – 6,75%.

In addition to specialized taxes, operators pay federal and local fees. After the ban on gambling was lifted, other states adopt local laws, setting a gambling tax for gambling and betting.

What is the tax on lottery winnings in Russia?

Taxation of lottery prizes

There is a tax on lottery winnings in the Russian Federation, which is 13 percent of the winnings. When, if the winner does not have resident status, then the amount of tax increases to 30 percent. An interesting fact in this matter is that, that the tax on winnings is not paid by the winner, and the lottery organizer. Naturally, he does it not from the funds of the organization.

Material prize

Tax payment is made directly from the amount of money put as a prize. As a result, the lottery winner receives his winnings minus 13 percent government tax.. If material value was declared as a prize, not a sum of money, then the winner must pay 13 percent of the tax value. The tax payment process is, to indicate the specific value of the prize on the tax return and pay the proper portion.

Tax amount on winnings in various lottery world famous

United States citizens must pay 25 percent of the winnings to the state, if their prize is more than 599 dollars in monetary terms. Citizens of other countries are taxed, which is 30 percent of the total prize. In addition, recipients of the prize pay state tax, component 3,75 percent. All tax fees are borne by the organizer in terms of execution. The winner receives a cash prize with tax deduction.

This lottery game, like the previous, assumes 25 percent tax on US citizens and 30 percent on foreign players. This amount of tax takes place if you win more than 599 dollars. Additionally also paid 3,75 %.

If you win more 599 $, the participant is obliged to pay the state 25 or 30 percent of the total (depends on citizenship or lack thereof). There is no state tax, since this lottery is California. Another condition of this lottery game is that, that you can only take part in it with 18 years old.

The peculiarity of lottery taxation is, what the prize, whose sum is less than 2,5 thousand euros, does not oblige to pay a dime. Tax takes place upon winning, exceeding the indicated amount. It composes 20 percent of winnings. Age of participants - from 18 years old.

If you win more than 449 euros, the participant is required to pay 29 percent tax. Players, whose age is less 18 years old, not allowed to play. For, to take part in the lottery, you must have European citizenship.

How you can avoid paying tax on your winnings?

Taxation of the Russian Federation in some cases has exceptions, which also applies to lotteries. These exceptions are as follows:

No tax

An exception to the general rules of taxation are the so-called "incentive" lotteries. They are often held in large shopping and entertainment centers and act as a kind of marketing tool to attract new customers.. Usually, the prize fund of these draws cannot boast of the scale, therefore, the winnings cannot be stunningly large. Prize is not taxed, whose cost does not exceed 4 thousand rubles. If the win has exceeded this bar, then the tax fee is not paid on the entire value of the prize, but only with the difference between the total amount and four thousand.

No tax

Exception from exceptions

It is worth paying attention to the fact, that the interest rate on incentive lotteries in the Russian Federation is 35 percent. It should also be noted, that the winner pays tax on the winnings himself

After receiving the prize, he must request from the accounting department of the shopping center a receipt on the real value of the prize and contact the tax office to pay the corresponding tax.

Together with the state

Conclusion

The taxation system of various countries in some cases dictates certain conditions to citizens, which are binding within the law. Cash prizes, obtained by participating in lottery games, also have their own tax rate. The amount of tax is different in different games, so before playing, you should read the conditions of the drawing for more details.

In Ukraine, state lotteries are not taxed up to a certain amount. The disadvantage in this case may be a small prize fund of this type of games and, accordingly, a small jackpot. Lottery games, non-governmental, offer larger amounts as prizes. The choice is definitely up to the participant

One has only to take into account, that sometimes the winnings after deducting taxes can be an order of magnitude higher, than a deductible state prize

Russian winnings tax

When holding a stimulating lottery for a cash prize, the organizers are obliged to independently calculate the amount of tax and withhold it from the winnings, transferring to the state income. The winner is transferred the amount of money won by him minus personal income tax. In this case, he does not need to worry about filling out the declaration and paying off tax obligations on his own..

If a person won a car, then he will need to pay tax in the amount of 13 or 35% from the cost of the car (whichever, how did he get his winnings). That is, when the cost of the car is 2 million rubles its new owner will need to pay 260 thousand or 700 thousand (when the event is an advertising game).

Lottery taxes

Let's figure it out, what is a stimulating lottery. As a rule, these are promotions of large brands or companies in order to attract new buyers, partners, clients. And prizes in such lotteries are usually valuable prizes - a car, real estate, etc.. Therefore, when receiving a prize, you need to have an idea, what if you won the car for 0,5 million rubles, then 35 percent of this cost you will have to give to the state. But do not despair - in such games there is always the opportunity to refuse the prize in favor of its monetary value.

More and more people lately prefer foreign games, which offers many modern services for the game, like Ventura24 or Lotto247. A wide range of world-famous lotteries and more than tempting Jackpots are provided to the attention of players. But won't you have to give most of the winnings to the state, therefore, more and more players are interested in - what is the tax on a foreign lottery?

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

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.

What is the tax on lottery winnings in Russia 2020

Taxation in the lottery business is governed by Art. 228 Of the Tax Code of the Russian Federation and the Federal Law "On Lotteries" No. 138-FZ dated 11.11.2003 r. Winning the lottery, a casino or sweepstakes is considered an acquisition of income. Like all other earnings, it is taxable (NDFL).

The size of the bet depends on the citizenship of the player:

  • 13% for Russian citizens with a citizenship term of more than 183 days;
  • 30% for foreign citizens and those, who received Russian citizenship less 183 days ago.

The bet on winnings in promotional and promotional events is 35% for all winners, received a prize in excess of 4000 rub.

Thus, if you are lucky to win the coveted million, you will not be able to get the full amount, and minus the established 13% , i.e 1000000-100000*0,13 = 870000 rub. The tax amount will be 1,000,000 * 0.13 = 130,000 rubles. and it will have to be paid to the state.

For instance, one of the largest super prizes in the history of Russian lotteries was won by a resident of Sochi and equaled 364,6 million rubles. The tax on this amount was 47,3 million. rub.

Receiving real estate as a prize, a car or other gift is also considered income. The tax is calculated based on the market value of the property won.

Winnings tax

so, for any winnings of money or any property, all citizens are required to pay personal income tax, which is called personal income tax. When calculating its value, as well as determining the procedure for its payment, the source of income and its size are taken into account. This data will affect the, on whose shoulders the tax liability will fall: organizer or citizen. All the most important nuances are set out in the Letter of the Ministry of Finance from 11.04.2018 № 03-04-07/23939.

The main thing is the amount of income, gambling winnings, on the totalizer, in the bookmaker's office, in the lottery.

Amount of income Who pays How are they paid Payment amount
Greater than or equal 15 000 rubles Tax agents: operators, lottery distributors, game organizers Reducing the size of the win 13 % or 35 % (cm. below - types of lotteries)
Smaller 15 000, but more 4000 rubles Individuals, winners On my own 13 % from the amount, exceeding 4000
Less 4000 rubles Not subject to tax

To find out, what is the tax on lottery winnings 2020, must be considered, what type was the lottery:

  1. State lottery - the rate will be 13 %.
  2. Winnings, promotion prize - bet 35 %, if the amount is more 4000 rubles.

IMPORTANT!
If a citizen has received small winnings several times during the year, and their amount exceeded 4000, he will have to pay tax on the excess amount, and independently.

There is also a nuance regarding the taxation of gambling winnings.: sum, which will have to pay tax, is the difference between income and rate, made by the player.

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.

Conclusion

  1. You must pay tax for winning the lottery.
  2. Tax is paid when the amount of the win is more 4 000 rubles. From the general base, these 4 thousand.
  3. Tax is paid on cash prizes, and material assets - equipment, cars, apartments.
  4. Part of the taxes is paid by the lottery organizer (relevant for cash prizes of the incentive lottery), in some cases, the winner fills out the declaration himself.
  5. Tax rate in lotteries 13%, in stimulating draws 35%.
  6. You cannot evade payment - punishment will follow. Fiscal authorities find out about the winner, because. the lottery organizer is obliged to transmit the relevant information.
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