What taxes on gambling activities need to be paid in different countries?

Tax on lottery winnings in russia: how much and when to pay

Lottery taxes in other countries

Let's start with European lotteries. The tax laws on lottery winnings vary from country to country. Below is a summary of the tax rates for lottery winnings.

In Spain before 2013 Years lottery winnings were not taxed at all. However, under the influence of the crisis, from 1 january 2013 year tax was introduced. It should be noted, that the winnings are less 2500 euros are not taxed. Otherwise, the tax rate will be twenty percent. This applies to all, not just Spanish citizens. That is, if you win online, you still have to pay.

Lottery winnings are tax free in the UK and Germany. Also zero tax rate on lottery winnings in Finland.

Italy has a tax on lottery prizes of 6%. In this case, the amount must exceed five hundred euros. In Bulgaria, lottery winners pay ten percent, in the Czech Republic - twenty percent.

At all, we will try to answer the question below, what tax will the Russians have to pay, who decided to play not in Russian lotteries, and in foreign.

Let's repeat, what if between Russia and the country, where was the ticket purchased, there is a double taxation treaty, then the winner pays tax only in that country, where won. But if there is no such agreement, then the tax must be paid twice.

Australia also has no taxes on lottery winnings.

And in conclusion about one of the most lottery countries - the USA. The highest tax on winnings is paid on American lotteries. It depends on the state, where was the ticket purchased. The minimum is twenty five percent, what is the federal tax rate. Local state tax may be added to it., or even a separate city. For example, in Michigan, an additional tax on lottery winnings – 4,35%, in Illinois - 3%, in New Jersey - 10,8%, and in the states of California, Texas and Nevada he is completely absent.

Eventually, considering all taxes, the lucky one can lose almost forty percent of the winnings

If you – Russian citizen won the American lottery, and it doesn't matter, buying tickets in person, either via the Internet, then you will pay the maximum - 35 percent – this is spelled out in American law.. for example, You single-handedly won 640 million dollars to megamillions

Of 42 states participating in this lottery, at five - New Hampshire, Tennessee, Texas, Washington and South Dakota have no taxes on state lottery winnings at all. The federal tax remains - 35%. Ie. with a suffix 640 You will give 161 million dollars. And if you, e.g. New Yorker, then 8,8% will leave the state budget, 3,9 - to the city budget. Federal tax will also have to be paid. Thus, You will lose already 199 million dollars.

for example, You single-handedly won 640 million dollars to megamillions. Of 42 states participating in this lottery, at five - New Hampshire, Tennessee, Texas, Washington and South Dakota have no taxes on state lottery winnings at all. The federal tax remains - 35%. Ie. with a suffix 640 You will give 161 million dollars. And if you, e.g. New Yorker, then 8,8% will leave the state budget, 3,9 - to the city budget. Federal tax will also have to be paid. Thus, You will lose already 199 million dollars.

Winnings tax

When receiving a lottery win, a gift from citizens, a completed tax return in the form of Z-NDFL should be submitted to the local tax authorities by 30.04 of the year following the receipt of the prize / gift; and no later 15.07. Following the receipt of the win / gift of the year, it is imperative to pay the calculated amount of tax to the budget.

A deposit is money, which the player originally contributed to the bookmaker's account, ie. put. Why does the taxation procedure change in this case?? The thing is, if you benefit from 15 thousand. rubles, offices become tax agents in the eyes of tax authorities. It means, that the bookmakers themselves are engaged in withholding personal income tax, and the player can only get the money: tax will be paid even before the funds are withdrawn.

Lottery winnings tax: who should pay and how much

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 11.04.2020 № 03-04-07/23939.

If a citizen wins a motorcycle, household appliances, etc.. P., the founders of the share are unable to withhold the cost of the tax deduction. In this case, they must inform the winner, and also notify the tax authority about the impossibility of making a payment. For the winner, this would mean, that now it is his responsibility to pay the budget. Moreover, if the car was received in the course of advertising (the so-called stimulating) lottery, will have to give 35 % (Ministry of Finance letter from 26.03.2014 № 03-04-05/13261). So the lucky one will have to think twice: find a third of the cost of the car to pay the tax amount, refuse a gift or accept and sell.

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.

How to fill out a 3-NDFL declaration

When an individual is obliged to independently pay tax on winnings, then you must also submit a 3-NDFL Declaration to the tax office and declare your prize.

For 2018 year form 3-NDFL, which must be submitted approved by order of the Federal Tax Service 03.10.2018 № ММВ-7-11 / 569 @. The deadline for filing the declaration is set to 30 April next year after the reporting year.

The declaration form contains many sheets. But, if you had no other income, property and social deductions, then you need to fill out the Title page, Sections 1 and 2, application 1, application 4.

Start filling from the end. It will be more convenient this way.

In the application 4 you must indicate the tax-free amount in the amount of 4 000 rubles. This amount is exempt from taxation of received prizes, gifts.

Write on one of the lines:

«060» - indicate the amount 4 000 rubles, if you won prizes in contests, and other activities for the purpose of advertising goods (works, services).

«080» - indicate the amount 4 000 rubles, if you become a participant in gambling and lotteries.

In the line "120" write the amount again 4 000 rubles.

3-Personal income tax from winnings. application 4

In chapter 2 you must indicate the amount of income received from the winnings for the last year.

In line 001 indicate tax rate, which your prize is charged:

  • 13% - for Russian citizens;
  • 30% - for foreign citizens;
  • 35% - for prizes, received in the form of property.

Enter the amounts on the following lines:

  • "010" - the full amount of the win.
  • "020" - the amount is transferred from the Application 4 at the rate of 4 000 rubles.
  • "030" is the difference between the lines "010" and "020".
  • "060" - repeat the amount from "030".
  • "070" - the calculated amount of tax.
  • "150" - is repeated from "070".

3-Personal income tax from winnings. Section 2

In chapter 1 fill in the amount of tax payable in the line 040. The amount is transferred from the Section 2 lines 150 "The amount of tax, payable (surcharges) in the budget ».

In line 010 indicate "1" - payment (surcharge in the budget).

Fill in the KBK and OKATO codes in the corresponding lines.

On the Title Page fill in TIN, personal data, document details, taxpayer identification.

Taxpayer status code:

  • "1" - for a tax resident of the Russian Federation;
  • "2" - for face, not a tax resident of the Russian Federation.

Indicate the phone number and the number of pages of the declaration.

It is possible to provide 3-NDFL to the IFTS in several ways:

When, if you are lucky and you won more 15 000 rubles, then you will not have to file a tax return. The organizer of the lottery must do it for you.. The company itself calculates, pays tax to the budget and provides information on your winnings.

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.

Tax based on the type of win

Tax on winnings at the bookmaker's office

Bookmaker organizations are becoming more and more popular in Russia. Much of their popularity is due to the expansion of activities on the Internet.. The country has a tax on winnings in bookmakers.

In the Tax Code in 2019 year changes were made. In accordance with them, tax must be paid from the winnings, you need to do this with the amount of 15000 rubles and more. In such situations, the winner receives the amount minus 13%. If you win less 15000 rubles the player receives the full amount. At the end of the year, he must independently file a tax return and make deductions.

Foreign Lottery Tax

If a Russian won a foreign lottery, then he may face double taxation. Part of the won amount will have to be transferred to the state budget, who held the draw. After that, the tax service of the Russian Federation will issue an invoice.

There are two points to keep in mind.:

There is a list of states, with which there are agreements on the elimination of double taxation. If you win them in the lottery, it is enough to pay tax once.
If the prize is received in the state, which did not conclude an agreement with Russia on the elimination of double taxation, a number of companies agree not to advertise the name and surname of the lucky person. Here the honesty of the winner comes first.. In addition, tax evasion involves the imposition of criminal or administrative liability.

Taxation of car winnings

How the property won tax is calculated? Part of the apartment or vehicle cannot be separated, then give it to others. In such situations, the standard rate applies - 13% or 35% on the value of the gain.

The lottery organizer notifies the authorities of the monetary value of the winnings, information must be documented. If the owner of the winning ticket does not have the money to pay tax, he can sell the prize and pay the required amount from the funds received for it.

Taxation of prizes, provided for advertising purposes

Computers are often used as prizes, washing machines, fur coats and other things and equipment. In such situations, the state does not collect tax from the lucky one.. However, the organizer will inform the tax office of the prize won, and also about, that it is impossible to withhold tax. All responsibility for paying the fiscal fee rests with the winner.

In accordance with applicable law, the rate applies for advertising draws 35%. To clarify the amount, you need to contact the organizer, ask him for a check or other document, which would confirm the price of the prize. If in your opinion the amount is too high, then you can order an independent assessment.

On the pages of our business portal you can find a lot of useful information about taxation. So, this link provides a guide to calculating car tax in Russia. And on the https site://investtalk.ru/nalogi/poisk-nalogov-po-inn-fizicheskogo-litsa we are talking about finding and paying taxes by the individual tax number of an individual. Sure, this and other information will be useful to you, will help reduce fiscal pressure and avoid problems with government services.

How to fill out a declaration?

so, in case of self-payment of tax on money or prizes won, an individual must submit a 3-NDFL declaration to the tax authorities. Starting from the reporting campaign for 2018 year the declaration is submitted in a new form, approved by order of the Federal Tax Service 03.10.2018 № ММВ-7-11 / 569 @. Deadline, designated for sending a report to tax authorities, — 30 April of the year, following the reporting.

  1. In the absence of data on other income, property, social, etc.. deductions to fill in and submit the title page, sections 1 and 2, Appendix 1, Appendix 4.
  2. The title plate contains information about the reporting individual.
  3. application 1 filled in based on the income received - the value of the prizes, cash amounts, data on the source of payment.
  4. In the appendix 4 заносится необлагаемая сумма в 4000 rub.
  5. Data from applications is transferred to the section 2, where is the calculation of the base and the amount of income tax.
  6. In chapter 1 the amount of tax is indicated, payable to the budget, broken down by KBK and OKTMO.

Responsibility for non-payment of tax

If you don't pay tax on your winnings, tax will charge a fine. Its size depends on the amount of debt. If the declaration is not submitted or is submitted later, a fine will be charged 5% per month from the amount of tax, but no more 30% of the total, to be paid to the budget. The minimum size cannot be less 100 rubles. P. 1 Art. 119 NK RF

The tax office may increase the fine up to 40%, if it finds, that the person deliberately evaded tax. If you continue to pull with the payment of the fine, daily will .

Penalty amount = Unpaid tax amount x 1/300 Refinancing rates of the Central Bank of the Russian Federation x Number of days of delay. In July 2019 year the refinancing rate is 7,5 %. Refinancing rate of the Central Bank of the Russian Federation

If you ignore the requirements, FTS will begin the collection process. Funds will be debited from the debtor's bank accounts. When there is no money in the accounts, may arrest real estate. Article 77 of the Tax Code

In case of large arrears, the tax office transfers materials to the police. Security officials will first conduct a pre-investigation check, during which they find out, is it worth starting a criminal case. If yes, then the guilty person could face up to one year in prison with a fine of 100-300 thousand rubles. Art. 198 UK RF

For failure to pay tax on a large scale, can put on 3 years and fined 200-500 thousand rubles. In this case, you still have to pay the previously assigned fine and interest.. A large tax debt is considered in the amount of:

  • 900 thousand rubles, if it exceeds 10% unpaid tax for three years;
  • 2,7 million rubles regardless of time and interest.

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The player himself pays tax on winnings less than 15 thousand. rubles

As mentioned above, if the player's winnings are less 15 thousand. rubles, then the bookmaker does not withhold personal income tax, and in this case an individual (player) обязано исчислить и уплатить налог самостоятельно. Однако букмекер сообщает в налоговый орган о том, that the player received income, and in case, if the player has not paid personal income tax on his own, the tax authority has the right to apply to him with the collection of unpaid taxes.

Mr. Grigoriev noticed, that the rule for deducting the bet size from the winning amount for more than 15 thousand. rubles does not work, если игрок выиграл меньше 15 thousand. rubles, and, respectively, determines the tax base itself. "In other words, literally reading the provisions of the Code, player, who won less 15 thousand. rubles, you will have to pay tax on the entire winnings, excluding the bet he made ", - said the lawyer.

Besides, he drew attention, tax deductible sum of all winnings for a calendar year in the amount of 4 thousand. rubles

That is, if the player has not won more in a year 4 thousand. rubles, then he has the right not to declare these income, according to n. 28 Art. 217, P. 4 Art. 229 NK RF.

"Should be considered, that the right not to be taxed on winnings relates to the aggregate of winnings received in a calendar year, and if the withholding agent has previously applied this right when withholding tax from you, then you should not re-declare it ", - emphasized Mr. Grigoriev.

Besides, income from gambling winnings cannot be reduced by tax deductions, established by Art. 218-221 NK RF (P. 3 Art. 210 NK RF). It means, that the player has no right not to tax his winnings, reducing it, eg, for the costs of buying a home or paying for tuition, added lawyer.

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