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.
About the prospect of becoming self-employed and paying 4-6%
FROM 1 january 2019 year you can become self-employed. While this can only be done in 4 constituent entities of the Russian Federation, but according to the Minister of Finance, a special tax regime for the self-employed may already be 2020 year to extend to all regions of the Russian Federation.
For a poker player, becoming self-employed is ideal. Since the self-employed has simplified reporting, and you do not need to submit a declaration. And most importantly, the tax on income from 4% to 6%.
But now there is no single opinion, can an online poker player become self-employed.
Therefore, I recommend waiting for comments on this matter from the Ministry of Finance. The answers of this ministry can be referred to as official interpretations of the application of the law.. Better yet, wait for the results of the pioneers..
Winnings tax - payment details
If you need to clarify information, or to obtain up-to-date information on the payment of tax on winnings, please contact the Tax Code of the Russian Federation, article 228
note, not only the lottery is taxed on winnings, but also gambling, totalizer, etc., regardless of whether, whether the organization is private or not
When, when the tax is paid to the winner, and that, in its turn, did not deposit funds on time, lottery winner receives a fine, minimum amount - 100 rub.
Prize won, e.g. car, can only be transferred after payment of the due tax, and subsequent registration of ownership.
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 the 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 the conditions for holding.