Today we have to find out what is personal income tax from winning the lottery. In Russia, almost the entire income of a population is taxed. Some do not even suspect that winning a lottery also involves transferring funds to the state treasury. What do all citizens need to remember? How and when to pay personal income tax for winning the lottery?
Required or not
To begin with, it remains to be seen how legally studied the requirement is. Does a citizen always have to pay tax on winning a lottery?
Not really. In some cases, the organizer of the draw undertakes this obligation. Then all that remains for the winner is to pick up the full amount of the winnings and spend it of their own free will. Typically, such situations are encountered with lottery tickets, allowing you to win small amounts of money.
In other cases, the citizen is obliged to transfer personal income tax from winning the lottery independently. This is a completely legal requirement, regulated at the state level.
Due date
When exactly should a citizen pay for the winnings received? What does that require?
The tax on winning the lottery is declared until April 30 of the year following the one in which the citizen received the prize. This means that in 2016 you will have to indicate all the winnings for 2015.
Payment of personal income tax from winning the lottery is made the next year after receiving the funds. At the same time, it is necessary to pay off the state before July 15.
Thus, each taxpayer:
- indicates the presence of a win until 30.04;
- makes payment of tax until 15.07.
Violation of the established deadlines leads to the formation of debt and holding the citizen accountable.
The size of personal income tax in Russia
Quite a lot of questions arise regarding the established tax rates for tax on winnings. What are the scenarios?
Personal income tax in Russia is 13%. Accordingly, from a win (or any other income), a citizen must give an amount equal to thirteen percent.
It would seem nothing special. But in Russia there is a separate tax on winnings. Therefore, you have to think about how much money to transfer to the state treasury.
A rate of 13% is provided for state-type lotteries. The bulk of well-known organizers of lotteries refers specifically to the state. Winning at Stoloto or Russian Lotto is subject to 13 percent tax. Since 2014, only state lotteries have been held in Russia.
Winning Taxes
But this is not the only scenario. As already mentioned, in Russia there is a so-called payout tax. It provides for a different interest rate. As a rule, we are talking about stimulating draws and lotteries. This is a popular marketing move with trading companies.
How much in this case is personal income tax from winning the lottery? 35% Accordingly, if a citizen participated in some kind of action or a non-state type of draw, he will have to transfer 35 percent of the prize received to the tax authorities.
Minimum with stimulating draws
But here there are certain features. For example, participation in incentive raffles and promotions do not always involve the payment of personal income tax. With a win in such lotteries you can not give away money. But when exactly?
If the minimum established by the state is not exceeded. Today in Russia, winning a share or a draw in the amount of not more than 4,000 rubles is not taxable.It follows that if a person won 2-3 thousand, he should not pay tax on the amount received.
Non-residents
Now it’s clear what the personal income tax rate for winning a lottery in one case or another will be. All previously proposed interest is relevant for citizens of Russia and its residents.
What if we are talking about a non-resident of the Russian Federation? The established legislation provides for the payment of personal income tax in the amount of 30% of the income received. No exceptions and benefits!
Foreign lotteries
How much taxes should I pay if a citizen won a foreign lottery? The answer will depend on the country in question. In this case, the tax rate depends entirely on the state that holds the draw.
For example, personal income tax on winning a lottery in Spain is 20%, in America - 25%, in the Czech Republic - 20%. In this case, funds are transferred to the treasury of the organizing state of the draw. More accurate information can be obtained in the country where the citizen participated in the lottery.
Double taxation
Sometimes you have to pay personal income tax from winning the lottery twice. Such situations are relevant for foreign draws. Some countries have signed a double tax treaty with Russia. In this case, the person who received the money through the lottery will have to:
- Pay the tax provided by the host country;
- transfer 13% of personal income tax in Russia.
Fortunately, this scenario is extremely rare. In general, foreign lotteries are not taxed in Russia. Therefore, there is no need to worry about double payments.
Non-taxable amounts
Some people are interested in how much tax is required when receiving a win (not for incentive lotteries). It is difficult to answer this question.
The thing is that at the legislative level there is no minimum that does not provide for tax on income from winning the lottery. This means that all prizes require personal income tax, even the smallest.
Citizens must decide for themselves what to do. Typically, cash transferred in the form of cash and small amounts is not indicated in tax returns and does not include the transfer of income tax. Large sums, as well as winnings transferred by bank transfer, must be declared without fail. Otherwise, a citizen can be held accountable.
A responsibility
What can be feared if you hide the winnings? Usually, liability is expressed as a fine. Basically, a citizen will have to pay 20% of the gain in the form of punishment. If the judicial authorities or the Federal Tax Service prove that the tax was not paid intentionally, the non-payer will be fined 40% of the winnings.
Each day of delay entails the appointment of a penalty. The first debt calculation will take place on July 16.
If a person has not indicated the winnings in the declaration, a fine will also be imposed for this. It is 5% for each month of delay. In this case, the maximum amount of collection cannot exceed 30% of the winnings. The minimum fine is 100 rubles.
Criminal liability is also provided. A citizen did not pay personal income tax from winning the lottery? If the amount of the debt exceeds 300 thousand rubles, a person can be arrested for 12 months or write a fine. It ranges from 100 to 300 thousand.
Payment Methods
How is the payment of personal income tax from winning the lottery? Paying off the state is easier than it sounds. A citizen just needs to pay personal income tax in the prescribed amount. In the form of income in the declaration indicates "win".
You can pay tax:
- through "State services";
- by using third-party services such as "Payment of government services";
- through ATMs;
- using payment terminals;
- through electronic wallets;
- by using Internet banking (such as Sberbank Online).
In general, the process under study is no different from paying any tax. From now on, it is clear how much personal income tax will be paid to a citizen from winning the Russian Lotto lottery.When is the deadline for transferring funds? To answer this question is also not difficult!