A big win in the lottery, the jackpot - this is the dream of anyone who has decided to play at least once in their life. But few people know that winnings in various quizzes, promotions and lottery tickets are taxed. The lottery tax can be levied immediately - the lucky winner is given what is left in his hands, or he must deduct it from the total amount and pay it himself.
Regulations, laws, documents
Tax on winnings in the lottery and the procedure for paying the amount won is carried out in accordance with the Civil Code of the Russian Federation and the Tax Code of the Russian Federation. So, article 228 of the Tax Code indicates in which cases tax is levied on lottery winnings:
- If the winnings from participation in lotteries, promotions and other gambling are issued in cash - 13%.
- If the prize is property: an apartment, land, car, household appliances, food, clothes - 35% of the specified value.
- For foreign residents participating in international lottery campaigns on the territory of the Russian Federation - 30% of the winnings.
According to the latest changes in the legislation regarding the conduct of gambling and participation in them, it is allowed to hold lotteries in the countrydrawings only to companies operating under government control and control. The fact is that gambling throughout the country, with the exception of some regions, is prohibited. Lottery draws are also their variety, which means they are also banned. But since they have their own characteristics, they were allowed, but only subject to certain conditions.
Private lottery companies that existed before often violated these conditions. For example, they did not follow the rules for issuing and placing ticket runs.
Therefore, the ban applies only to those companies that specialized in the production of lottery tickets. Other participants, for example, private shops and supermarkets, can arrange prize drawings by drawing them by numbers, as in lotteries. But such events must be held in accordance with the accepted rules, and the winner will have to pay lottery tax for winnings.
Types of lotteries held in Russia
Various lotteries and promotions are held on the territory of the Russian Federation. Despite their diversity, according to the method of conducting them, they can be divided into circulation and non-circulation.
Drawing lottery is considered when the company issues a limited number of tickets that are distributed for a certain time among all participants. The draw for them takes place simultaneously. Until this moment, all participants do not know which tickets are winning and which are not.
Uncirculateda lottery is a lottery that already contains information about which ticket is winning and which is not. Usually they are cards with a special coating applied. It needs to be erased to know the result.
Both circulation and non-circulation lotteries can have different forms of release: in the form of receipts, cards, tickets. An electronic version is also available. They can be exclusively Russian or international. Their number, conditions and procedure for payments are strictly regulated by the state, since the lottery in Russia belongs to the category of gambling. In addition to specialized firms, some shops and enterprises can conduct lottery draws. But regardless of the type and form, every lottery winning is taxed.
Promotions, sweepstakes and lotteries held by private stores
The winner in promotions and lottery events held by stores may not pay lottery tax if the winning amount does not exceed 4 thousand rubles. If any product is given out as a prize, then its value should not exceed this amount.
Sometimes large supermarkets, household appliance stores, large trading companies raffle off more expensive gifts. And although the pleasure of winning should be higher, the lucky recipient of such a gift should take into account that the lottery tax will be 35% of the cost.
A similar tax rate applies to incentive lottery participants. Such draws are arranged by various companies to advertise certain goods, works or services.The tax is paid in cash. Some difficulties may arise, especially if the gift is very expensive. If the terms of the promotion do not provide for the exchange or sale of a gift, then you will have to refuse the winnings or try to find the right amount.
Which amount of winnings are tax-free?
In accordance with Russian tax legislation, any income is taxed, regardless of its amount. Only pensions and subsidies are not taxed. Lottery winnings count as income. Therefore, the most common question, from what amount the lottery tax is paid, can be answered: from any. You will be required to pay tax even if the winnings are only 100 rubles.
What to do if the winnings are too expensive?
If you won a car, an apartment or a plot of land in the lottery, do not rush to rejoice. In some cases, these winnings turn out to be "fake". For example, you won an apartment, the value of which according to the documents is 1 million rubles, and its market value is only 300 thousand rubles. The lottery tax in Russia on property winnings is 35%. Accordingly, this is not luck, but a loss. And you will either have to refuse or accept the prize by paying an amount that is higher than its cost. Although such lotteries are recognized as fraudulent, it is not always possible to prove the guilt of the organizers.
Which lottery companies automatically pay tax on winnings?
It all depends on what prizes are up for grabs. Cash prizes are given out frompaid tax. That is, the winner receives exactly the amount that was announced as a prize. But if such objects as a car, an apartment, household appliances are played, then the winner pays the tax himself. Thus, they pay tax on the Russian Lotto and Golden Horseshoe lotteries, which often raffle such objects as a big win.
Participation in international lotteries
In Russia, foreigners have the right to take part in international promotions and lotteries held on its territory. In this case, the tax rate will be 30% of the winnings.
Russians can also participate in international lottery campaigns. On the territory of the Russian Federation, the percentage of tax on winnings in the lottery for them is 13% of the amount of winnings. If Russian citizens participate in draws on the territory of another country, then this rate is set by the party conducting the action in accordance with its tax laws.
How to pay the tax yourself?
If the organizers of the lottery for some reason did not take into account the tax in the amount of winnings, you will have to pay it yourself. To do this, you will need to download or purchase a personal income tax form-3 from a printing house in order to declare income, and fill out a declaration. Specifying the amount of winnings and the amount of tax. With this document, you go to the tax service or send it to the website of the Federal Tax Service, where you pay the tax. By the way, you can pay the tax much later - until July 15 next year.
What happens if you don't pay tax?
Responsibility for non-payment of tax from winning the lottery is the same as for non-payment of it from any other type of income. That is, the pen alty comes first. Then, if the taxpayer does not pay, the case goes to court. In this case, another punishment awaits the perpetrator:
- For tax evasion, the taxpayer faces a fine of 30% of the amount of the tax payment. If you knew that you were obliged to pay, but for some reason did not do this, the fine will be 40%.
- A pen alty fee will accrue for each day of delay, including time spent in litigation.
- If the income was not declared in a timely manner, you face a fine of 5% of the tax amount, which will be charged monthly, starting from May 1 of the year following the reporting year. That is, if in 2017 you won the lottery, then the tax must be paid before April 1, 2018. The fine cannot exceed 30% of the tax amount and be less than 100 rubles.
Do not forget about criminal liability. In Russian law, this measure is provided for non-payment of large sums. If the debt amounted to more than 300 thousand rubles or more, then the court may issue a decision on arrest for a period of up to one year or a fine in the amount of 100 to 300 thousand rubles. Therefore, if you have won an expensive prize, for example, an apartment or a car, but you do not have the means to pay the lottery tax, you should immediately contact and discuss this issue with the organization that conducted the lottery to resolve the situation. Organizers of lotteries and promotions usually always take into accountsimilar development of the situation. Instead of a prize, the winner may receive a cash certificate in an amount equal to the value of the prize minus tax.