If someone thinks that, having hit the jackpot in the lottery, he can safely keep the whole amount for himself, then he is deeply mistaken. In Russia, this number will not work, because, according to our legislation, any winnings, be it Sportloto or poker, are taxed. And he is not so small. Our article is devoted to the question: “What is the tax on winning the lottery in Russia?” Let us consider it in detail.
The legislative framework
It is not difficult to find out what percentage of the tax on winning is levied on the lucky one. This can be done by looking at the tax code of the Russian Federation. Article 228 (paragraph 1, subparagraph 5) states that any resident of Russia who is lucky in sweepstakes, a lottery (public and private) or other risk-based gambling is obliged to give the state 13% of the amount received . If he won a valuable prize, then he is also taxed - 13% of his market value. Any gain is considered the income of an individual, and the tax on it in our country is exactly 13 percent.
It should be recalled that the residents of Russia are persons who have been in the country for 183 days or more for the next 12 consecutive months.
Cash Lotteries
Another very important nuance - the tax on winning the lottery is calculated at 13% only if it comes to cash prizes! The specificity of such lotteries is that they are based on risk. That is, buying a ticket or performing another action within the game, its participant receives nothing but a chance to win. Another type of lottery, which will be discussed below, is subject to a much higher tax. Some are not subject to them at all.
Incentive Lotteries
Classics of the stimulating lottery genre are considered to be ubiquitous prize draws in supermarkets among holders of checks. The condition for participation here, as a rule, is a purchase made for a certain amount. The most successful buyer as a result of the lottery can receive some goods or money as a prize.
So, the tax on prizes and winnings, which do not exceed the amount of 4 thousand rubles, is zero, that is, not charged at all. If we are talking about an amount in excess of four thousand, then its lucky owner should give the state as much as 35%. True, not from the whole gain, but from the difference between the tax-free maximum and the actual size of the hit.
The tax is calculated as follows: upon receipt of an amount of, for example, 9 thousand rubles (or goods worth 9 thousand), a Russian resident must subtract nine thousand from four thousand, and then calculate 35% of the result. In this case, it will be 1750 rubles, which you need to share with the tax.
Tax payment methods
There are several ways to pay win tax. In stimulating lotteries, as a rule, the prize is a product. If it costs more than 4 thousand rubles, then the recipient must independently pay the state a percentage of the difference. If the organizers offer money as a prize, then they deduct 35 percent immediately and pay the tax themselves.
About the same situation in the field of cash lotteries. You can charge the tax on the shoulders of the organizers. Then the payee will receive the winning amount without 13 percent. Or you can pay the tax yourself by filling out the appropriate declaration and submitting it no later than April 30 of the year following the one in which the winnings were received. Make a payment before July 15th. In the event that a Russian resident violates the deadlines, he will be fined (starting from 100 rubles).
The prize in cash lotteries is not only money, but also apartments, cars, land, etc. In such situations, the procedure is significantly complicated. After all, not every winner has 13% in cash of the cost of, say, an apartment.
Therefore, in order to pay the tax, he must first sell the won property, which is not always possible to do quickly. But the tax does not like to wait and the deadlines are clear.
Private Lotteries
On July 1, 2014, several amendments to the lottery law entered into force. Now all their non-state species are prohibited. The essence of the amendments is that all existing drawings in the country should be carried out on a competitive basis, with the participation of the Ministry of Sports and the Ministry of Finance.
New rules only allow adults to participate in draws. For violations, such as holding a lottery without permission, untimely transfer of funds or refusal to pay a prize, the organizers of the draws will be subjected to penalties. In addition, all lottery organizers are required to provide reports on their income.
Also, these amendments indicate that in our country you can hold All-Russian lotteries, but with the participation of the above ministries. All adult residents of the country can participate in such draws. Also in Russia it is allowed to hold International lotteries (usually foreign), which are organized on the territory of several states at once. The Russian Federation is one of the countries where such rallies are allowed, unlike the United States.
Frequently Asked Questions
The tax rules for lottery draws are quite simple and transparent. But in life there are different cases and circumstances, so people often have questions.
For example, many people ask whether the percentage of tax on winnings depends on who the winner of the prize is a pensioner or able-bodied resident. Answer: does not depend. The tax is the same for everyone - the legislation does not provide for benefits and discounts for certain categories of people.
The issue of the right to dispose of the won property is still relevant. For example, is it possible to give an apartment or a car received as a prize? Answer: it is possible. But only after tax. Moreover, for Russian residents who won the state lottery, it is 13%, but if a non-resident won, then they would have to give 30% of the value of the property.
Periodically, Russians are faced with situations where the value of a won piece of land is deliberately overstated by the lottery organizers. And it depends on what tax on winnings will have to be paid. People are also interested in whether it can be proved that the real value of the plot is lower? The answer is: you can contact the antitrust committee. There are no other ways to solve the problem. And the organizers really often inflate the cost of objects in order to force the recipient to refuse their prizes.
Participation in foreign lotteries
Another side of the gaming sphere is foreign lotteries. Among the Russians there are many who are inclined to seek happiness precisely abroad. How much is the tax on winnings in this case?
It should be noted that with foreign lotteries, not everything is so simple and clear. And in the muddy water, as you know, the fish is easily caught. Therefore, there are so many who want to hit the jackpot outside the homeland. After all, someone else's tax is unlikely to get the offender, and his own, dear, does not know about the win. And thus, it turns out to "ride a hare."
If everything is done according to the law, then before entering the game, you should find out if Russia has an agreement with the country where the lottery is held. This refers to an agreement according to which the Russian recipient of the prize will not be obliged to pay tax on winning the lottery to both countries - both his own and someone else's. The absence of such a document will substantially “cut off the happiness” of the winner.The exception is only cases when in the state conducting the lottery, the prize tax in the lottery is not provided at all.
List of countries where no winnings tax is levied
Among states that do not claim part of the winnings are:
- Australia.
- Great Britain.
- Latvia.
- Canada.
- Finland.
- Belarus.
But residents, for example, the USA, Israel, France, Italy, etc., like the Russians, are obliged to share with the tax. Moreover, in some countries the percentage of deductions is even higher than ours.
About the amount of taxes abroad
The most greedy state in this regard is the United States of America. How much tax will take money from the lucky winner of the lottery in this country? It depends on the amount of winnings and the specific staff. The minimum rate is 25% and is charged if the prize is equivalent to an amount of $ 600 or more. Plus, many states throw their interest to the national minimum. And the appetites are different everywhere. States such as California, Texas, and Nevada take nothing for themselves. Michigan is limited to 4.35% of the regional tax, and in New Jersey they will ask as much as 10.8% additionally.
The Swiss are also not enthusiastic about the claims of their tax authorities. They take away from the player in the lottery 35% of all “honestly earned”. Residents of the Czech Republic are forced to pay a tax on winning the lottery in the amount of 20%. And in Bulgaria it is 10%. A relatively low payout tax is set in Italy. It is expressed in only six percent of the total.
As for the settlement system with the tax inspectorate, in most states everything is left to the lottery organizer. The tax on prizes and winnings is automatically deducted and transferred to where it should be. A successful player gets his money already clean. This is done both for the convenience of citizens, and in order to avoid possible cases of tax concealment.