Many people regularly participate in various lotteries, hoping to get a big win. To do this, buy special lottery tickets or take part in various promotions held by large commercial organizations. But at the same time, all participants must remember the need to pay tax on lottery winnings. It can be paid by the management of the organization that runs the lottery, and the procedure can also be implemented by the direct recipient of the prize.
What rate applies?
Tax on lottery winnings in Russia depends on how much is given to the winner. It is from this value that a certain fee is paid. It depends on the status of the recipient of the money, as the rate is different for residents and non-residents.
The winnings are represented by an additional income of a citizen, therefore personal income tax is paid from it:
- 13% is charged from people who are residents of the Russian Federation;
- if the winner is represented by a non-resident, then he will have to transfer 30% of the amount received to the state.
Extra always 35%paid from winnings received as a result of participation in promotional games or various contests. In this case, the status of the recipient is not taken into account.
For example, if a Russian person purchases a lottery ticket or takes part in gambling or paid contests, then when receiving any income, he will pay only 13%. If he is a participant in a television show or a quiz, then he will already have to transfer 35% of the amount received to the state.
Rates are the same for commercial or government lotteries and contests. A high tax rate on lottery winnings of 35% is set for various promotional activities held by various shopping centers or stores. With the help of such actions, organizations attract attention to their activities from a large number of potential buyers.
Promotion lottery concept
It is an incentive procedure used by firms to increase their income. Most often, such lotteries are presented in the following forms:
- when making a purchase in the store, a check is issued with which a discount is offered on a future purchase;
- pranks implemented using mobile phone numbers, and such actions are usually implemented by mobile operators;
- other tricks by which customers or customers are involved in some unusual game.
Participants in the promotional lottery do not lose any of their funds, butif they get a big win, they need to get a special certificate from the organizer containing information about the value of the item received, if it is not represented by a monetary amount. Additionally, you need to find out the TIN of the company that issued this prize. Only under such conditions can one correctly calculate and pay tax on lottery winnings.
Features of participation in foreign lotteries
Russian citizens can participate in various drawings held in foreign countries. In this case, they will have to pay two taxes on their profits. They transfer 13% of the amount to the Russian budget, and also pay a fee stipulated in another country.
Additionally, it is necessary to take into account the content of international treaties signed between Russia and other states. In this case, different conditions may apply to avoid double taxation. What is the tax on lottery winnings in other countries? Examples include the following states:
- Germany has no taxes on winnings at all;
- 6% paid in Italy;
- in Bulgaria, 10% of income received is transferred to the state;
- in the Czech Republic the fee is 20%.
Therefore, before taking part in any lottery held in another state, you should decide in advance how much you will have to pay in the form of tax. In addition, it should be remembered that the terms for paying the fee in other countries differ significantly from the terms used in Russia.
Can I not pay?
The tax on lottery winnings in Russia is considered significant, so many people who are winners of various contests are thinking about using different methods to avoid taxation. It is advisable to transfer the required funds to the state, otherwise the citizen will be held administratively liable.
The legislation clearly states that the fee is paid only on winnings that do not exceed 4 thousand rubles in size. Therefore, if a person receives less than 4 thousand rubles, then he will not have to transfer funds to the treasury. The tax on lottery winnings in Russia has remained unchanged since 2018, so in 2019 it may be 13 or 35%, depending on the type of lottery.
If the employees of the Federal Tax Service reveal that any taxpayer has not paid the required amount to the budget, then he will be held administratively liable. If income exceeding 300 thousand rubles is hidden, then criminal liability is possible.
People who receive money as a result of participating in the lottery should understand not only what tax on lottery winnings is paid, but also when to complete this process. Funds are transferred to the budget until July 15 of the year following the year in which the income was received.
For example, if a citizen received a prize in 2018, then by July 15, 2019, he must correctly calculate and transfer 13 or 35% of this income.
How to report?
Each winner of various competitions must not only pay the income tax from the lottery winnings to the treasury in a timely manner, but also record the appearance of this income. For this, a 3-NDFL declaration is drawn up in a timely manner. It is transferred to the department of the Federal Tax Service at the place of registration, and it is important to provide documentation to this institution before April 30 of the year following the reporting year.
Declaration can be submitted to tax inspectors in the following ways:
- personal transfer of the document to the employee of the relevant department of the Federal Tax Service;
- using the help of a representative, for which you will have to contact a notary in advance to draw up a certified power of attorney;
- sending a document by mail;
- use of an electronic declaration, which is then sent to the Federal Tax Service via special communication channels.
Each taxpayer independently chooses the best way by which he submits a declaration to the Federal Tax Service. At the same time, a declaration must be submitted to this institution by April 30 of the year following the reporting one. If there is no documentation within the established time frame in the tax service, then the citizen is held liable.
There are some important things to keep in mind when calculating and paying tax on lottery winnings. These include:
- some organizations, when transferring a sum of money to the winner, independently deduct tax from it, after which they pay it to the budget, so the citizen does not need to deal with thisprocess;
- if the prize is presented by a certain item, then you can find out its value by requesting a special certificate from the organizer;
- sometimes the value of real winnings is significantly inflated by management, so some winners simply refuse such winnings.
If a citizen is sure that the organizer deliberately overstates the cost of a particular prize, then he can file a complaint with the antimonopoly office. Based on his application, an unscheduled inspection will be carried out. If the winner's suspicions are confirmed, the value of the prize will be forcibly reduced.
Who controls the payment of tax?
Any winner of various lotteries should know what tax the winnings are subject to in order to timely and correctly calculate this fee, which is then transferred to the state budget. If this requirement is not met, the taxpayer will be held liable.
In fact, winnings are controlled by the Federal Tax Service, but tax inspectors are not always notified about prizes received by private citizens. Therefore, sometimes people hide their additional income. If such a violation is revealed, then the violators will have to pay heavy fines.
What tax will you have to pay on lottery winnings in Russia if the winner receives an amount in foreign currency? In this case, conversion will be carried out, for which the exchange rate valid at the time of receipt of the winnings is used.
If a citizenindependently deals with the calculation of tax on winning a lottery ticket, it is recommended to contact the bank to clarify the rate. Additionally, you will have to correctly fill out the declaration, including a predetermined course in it.
What if a person won a car?
As a prize in different lotteries, not only cash amounts, but also any valuable items can be provided. Often even a full-fledged car is raffled off, so the recipient of such a gift should know what tax the lottery winnings presented in this form are subject to. To do this, the following rules are taken into account:
- from such a prize you will have to pay 35% of the cost of the car to the state budget;
- for this, you will first have to contact the organizer for a special certificate;
- this document contains information about the estimated value of the car;
- it is from this value that 35% is determined and paid;
- if a citizen believes that the information in the certificate is not reliable, since in fact the car is cheaper, then you can contact the antimonopoly service;
- for this, you must first order an independent assessment, which will determine the market value of the prize;
- if the difference is significant, then representatives of the antimonopoly service may influence the organizer, after which the value of the prize will be reduced.
If a person wins a car, then he will have to prepare for a significant waste of money. If a citizen does not have the required amount, then he can simply refuseprize. You will not be able to sell the car before paying taxes, so you will have to look for other sources of funds.
What to do in the absence of funds?
Lottery winnings are taxed even if they are represented by any property. You can sell the received prize only after paying the fee, so if a person does not have the money to pay the tax, then he can choose one of the following options:
- any winner can refuse to accept the prize, for which they make an official statement, but such a decision is made by citizens quite rarely;
- getting a loan from a banking institution, which can be repaid immediately after the sale of the received property;
- using other sources of funds.
You should not refuse to win, as such a decision is considered inappropriate. The received car or other property can be sold after paying the fee, after which the citizen will have a large amount of funds. But at the same time, it is important to remember that if the car is sold within 5 years after receiving it, you will have to pay 13% again from the income received to the state budget. Therefore, often after such an operation, a citizen has too little money left.
Win at a bookmaker
How taxed is the winnings that a citizen receives at a bookmaker's office? Gambling entertainment is in demand among a large number of Russian citizens. For this, people often turn tobookmakers.
If a person wins on bets, then he is obliged to pay tax on the net amount received from the organizer. Therefore, the funds supplied by the citizen are deducted from it first. For example, a citizen bet 1 thousand rubles, but lost. The next time he bet 2 thousand rubles, after which he won 5 thousand rubles. The tax base is represented by the following value: 5000 - 1000 - 2000=2000 rubles. It is from this amount that 13% is charged, so 260 rubles are transferred to the budget
Methods of paying tax
Tax on winnings can be transferred in two different ways:
- The organizer independently calculates and pays the fee. In this case, the responsibility for the lack of a sum of money in the Federal Tax Service lies with the company. The winner will not be held liable in any way. Therefore, he does not even need to know what the tax on lottery winnings is. How much you need to pay to the budget is determined by the organizer. A person receives only net profit.
- The winner does the calculation. In this case, the taxpayer must independently figure out what tax on winning a lottery ticket will have to be transferred to the treasury. If he does not take the required actions, then he will have to pay heavy fines.
If a person is poorly versed in how to calculate the tax correctly, then he can turn to a specialist with this question.
If a citizen does not know how to fillthis official document, he can order its compilation in a special consulting firm. These organizations charge significant fees for their services. In fact, the declaration is considered easy to form, so you just need to follow some recommendations:
- the current form must be downloaded on the official website of the Federal Tax Service;
- in addition, this site has special programs that greatly simplify the process of filling out the declaration;
- with the help of such programs, the tax calculation is performed automatically after entering information about the amount of the amount received;
- if necessary, you can come to the department of the Federal Tax Service and ask for help from the employees of this organization.
In addition to the declaration, a certificate obtained from the organizer, a copy of the passport and other documents are attached. If the organizer paid the tax on his own, then no documents are required to be submitted to the Federal Tax Service.
Punishment for violation
Any person participating in different lotteries should understand whether lottery winnings are taxed. In this case, there will be no problems with the employees of the Federal Tax Service. If a citizen receives a prize, then he will have to pay a tax, otherwise he will have to face unpleasant consequences. They are presented in the following forms:
- if the 3-personal income tax declaration is not submitted to the Federal Tax Service on time, then a fine of 5% of the correctly calculated tax is paid, and such a fine is charged foreach month of delay;
- the total amount of the fine for the declaration cannot exceed 30% of the fee, but cannot be less than 1 thousand rubles;
- if a citizen evades paying the fee at all, then a fine of 20% of the fee is charged;
- if there is evidence of intentional evasion, the fine is increased to 40%.
Additionally, for each day of delay, employees of the Federal Tax Service accrue pen alties. To calculate the pen alty, the refinancing rate determined by the Central Bank is taken into account. If a person wins a significant prize, then the debt will be significant. If its amount exceeds 300 thousand rubles, then imprisonment for up to one year can be applied as a punishment. Additionally, a fine from 100 to 300 thousand rubles is paid.
Therefore, each person who receives a prize must responsibly approach the process of paying tax on income received. Otherwise, you will have to face negative consequences.
If a person wins the lottery, then he must pay the tax on time. Often the procedure is performed by the organizer, so it is he who is responsible for the correct calculation and timely transfer of the required amount of funds.
If the process is handled by the winner, then he must not only transfer the required amount of funds to the Federal Tax Service, but also additionally submit the 3-NDFL declaration within the prescribed time frame. If these requirements are not met, then you will have to pay large fines and pen alties. If a Russian citizen wins a lottery held in another country, thenprovisions of international treaties.