Many people regularly participate in different lotteries, hoping to get a big win. To do this, buy special lottery tickets or take part in various promotions conducted 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 holds the lottery, and the procedure can be implemented by the direct recipient of the prize.
What rate is applied?
The tax on lottery winnings in Russia depends on what amount 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 money, since the rate is different for residents and non-residents.
The gain is represented by the additional income of the citizen, therefore, personal income tax is paid from him:
- 13% is levied on people who are residents of the Russian Federation;
- if the winner is represented by a non-resident, he will have to transfer to the state 30% of the amount received.
Additionally, always 35% is paid with winnings received as a result of participation in advertising games or various contests. In this case, the status of the recipient is not taken into account.
For example, if a Russian person buys a lottery ticket or takes part in gambling or paid contests, then upon receipt of any income he will pay only 13%. If he is a participant in a television show or quiz, then he will have to transfer to the state 35% of the amount received.
Bets are the same for commercial or state lotteries and contests. A high tax rate on lottery winnings of 35% is set for various promotional events held by various shopping centers or shops. With the help of such actions, organizations draw attention to their activities from a large number of potential buyers.
The concept of advertising lottery
It is a stimulating procedure that firms use 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 for a future purchase;
- raffles implemented using mobile phone numbers, moreover, such actions are usually implemented by mobile operators;
- other tricks with which customers or customers are involved in any unusual game.
Participants in the advertising lottery do not lose any of their funds, but if they get a big win, then they need to get a special certificate from the organizer containing information about the cost of the item received, if it is not presented in cash. 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 draws that are held in foreign countries. In this case, they will have to pay two taxes on profits. They transfer 13% of the amount to the budget of Russia, and also pay the fee stipulated in another country.
In addition, the content of international treaties signed between Russia and other states must be taken into account. In this case, different conditions may apply to avoid double taxation. What is the tax on lottery winnings paid in other countries? The following states can be cited as an example:
- in Germany no taxes on winnings are levied;
- in Italy, 6% is paid;
- in Bulgaria, the state transfers 10% of the income received;
- in the Czech Republic, the fee is 20%.
Therefore, before you take part in any lottery held in another state, you should decide in advance what amount you will have to pay in the form of tax. In addition, it should be remembered that the timing of payment of fees in other countries is significantly different 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 think about using different methods to avoid taxation. It is advisable to transfer the money to the state, as otherwise the citizen will be held administratively liable.
The law clearly states that a fee is paid only with winnings that do not exceed 4 thousand rubles in size. Therefore, if a person receives less than 4 thousand rubles, then you 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 can be 13 or 35%, depending on the type of lottery.
If employees of the Federal Tax Service reveal that a taxpayer has not paid the required amount to the budget, he will be held administratively liable. If income is concealed in excess of 300 thousand rubles, then criminal liability is possible.
When is it paid?
People who receive money as a result of participating in the lottery must understand not only what tax on lottery winnings is paid, but also when this process needs to be completed. 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 win 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 in time, but also record the appearance of this income. For this, a 3-personal income tax return 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 by April 30 of the year following the reporting year.
The declaration can be submitted to tax inspectors in the following ways:
- personal transfer of the document to the employee of the corresponding 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;
- the use of an electronic declaration, which is then sent to the Federal Tax Service through special communication channels.
Each taxpayer independently chooses the best method by which he submits a declaration to the Federal Tax Service. At the same time, you must submit a declaration to this institution before April 30 of the year following the reporting year. If there is no documentation in a timely manner in the tax service, then the citizen is held liable.
Other features
When calculating and paying tax on lottery winnings, some important points should be taken into account. These include:
- when transferring a sum of money to the winner, some organizations independently deduct the tax from it, and then pay it to the budget, so the citizen does not need to deal with this process;
- if the prize is presented by a certain subject, then you can find out its value by requesting a special certificate from the organizer;
- sometimes the cost of property wins is significantly inflated by management, so some winners simply refuse such a win.
If a citizen is sure that the organizer intentionally inflates the cost of a specific prize, then he can file a complaint with the antitrust office. Based on his application, an unscheduled audit will be conducted. If the winner’s suspicions are confirmed, the price of the prize will be forcibly reduced.
Who controls the payment of tax?
Any winner of different lotteries must know what tax is applied to winnings 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 informed of prizes received by private citizens. Therefore, sometimes people hide their extra income. If such a violation is revealed, then the violators will have to pay heavy fines.
Win in dollars
What tax on lottery winnings in Russia will have to pay if the winner receives the amount in foreign currency? In this case, the conversion will be carried out, for which the rate at the time of receipt of the prize is used.
If a citizen independently calculates the tax on winning a lottery ticket, it is recommended to contact the bank to clarify the course. Additionally, you will have to competently fill out a declaration, including a predetermined course in it.
What if a person won a car?
As a prize in different lotteries, not only monetary amounts, but also any valuable items can be provided. Often even a full-fledged car is played out, so the recipient of such a gift must know what tax is imposed on the lottery prize presented in this form. To do this, the following rules are taken into account:
- such a prize will have to pay 35% of the cost of the car to the state budget;
- for this, you will initially 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 machine is cheaper, then you can contact the antimonopoly service;
- for this, an independent evaluation must first be ordered, with which the market value of the prize will be determined;
- if the difference is significant, then the representatives of the antimonopoly service can influence the organizer, after which the cost of the prize will be reduced.
If a person won the 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 refuse the prize. At the same time, it will not work to sell the car before tax, so you have to look for other sources of funds.
What to do in the absence of funds?
Lottery winnings are taxed even if it is represented by any property. You can sell the prize received only after paying the fee, so if a person does not have the money to pay tax, then he can choose one of the following options:
- any winner can refuse to accept the prize, for which he draws up an official statement, but such a decision is made by citizens quite rarely;
- obtaining a loan at a banking institution, which can be repaid immediately after the sale of the property received;
- use of other sources of funds.
You should not refuse to win, since such a decision is considered impractical. The resulting car or other property can be sold after payment of the fee, after which the citizen will have a large amount of funds. But it’s important to remember that if the car is sold within 5 years after receiving it, you will have to pay 13% of the state budget again from the income received. Therefore, often after such an operation a citizen has too little money left.
Win at the bookmaker
What tax is levied on the gain that a citizen receives in a bookmaker? Gambling is in demand among a large number of Russian citizens. For this, people often turn to bookmakers.
If a person wins on bets, he is obliged to pay tax on the net amount received from the organizer. Therefore, the money delivered by the citizen is deducted from it beforehand. 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.
Tax payment methods
Winning tax 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 monetary amount in the Federal Tax Service lies with the company. The winner will not be held accountable in any way. Therefore, he does not even need to know what is the tax amount on the lottery winnings. How much you need to pay to the budget is determined by the organizer. A person receives only net profit.
- The winner deals with the calculation. In this case, the taxpayer must independently figure out which tax on winning the lottery ticket will have to be transferred to the treasury. If he does not fulfill the required actions, then he will have to pay heavy fines.
If a person is poorly versed in how to correctly calculate the tax, then he can turn to this question with a specialist.
Rules for preparing a declaration
If a citizen does not know how to fill out this official document, then he can order it in a special consulting firm. Such organizations request significant fees for their services. In fact, the declaration is considered to be easy to generate, so just follow some recommendations:
- the current form must be downloaded on the official website of the Federal Tax Service;
- in addition, there are special programs on this site with the help of which the process of filling out a declaration is greatly simplified;
- with the help of such programs, tax is calculated automatically after entering information about the amount of the received amount;
- 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 received from the organizer, a copy of the passport and other documents is attached. If the organizer independently paid the tax, then no documents are required to be transferred to the Federal Tax Service.
Punishment for violation
Any person participating in different lotteries must understand whether the lottery winnings are taxed. In this case, there will be no problems with the employees of the Federal Tax Service. If a citizen received 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-NDFL declaration is not submitted to the Federal Tax Service within the prescribed time, a penalty of 5% of the correctly calculated tax is paid, and such a penalty is charged for each month of delay;
- the total amount of the penalty for the declaration cannot exceed 30% of the fee, but it cannot be less than 1 thousand rubles;
- if at all the citizen avoids paying the fee, then a fine of 20% of the amount of the fee is charged;
- if there is evidence of intentional evasion, the penalty is increased to 40%.
Additionally, for each day of delay employees of the Federal Tax Service accrue interest. To calculate the penalty, the refinancing rate determined by the Central Bank is taken into account. If a person wins a substantial prize, then the debt will be significant. If its size exceeds 300 thousand rubles, then imprisonment for up to one year may be used as punishment. An additional fine is paid from 100 to 300 thousand rubles.
Therefore, each person who received a prize must responsibly approach the process of paying tax on income received. Otherwise, it will have to face negative consequences.
Conclusion
If a person wins the lottery, then he must pay tax in a timely manner. Often, the procedure is carried out by the organizer, therefore it is on him that responsibility for the accuracy of the calculation and the timely transfer of the due amount of funds lies.
If the winner is involved in the process, then he must not only transfer the required amount of funds to the Federal Tax Service, but also additionally transfer the 3-NDFL declaration within the established deadlines. If these requirements are not met, then you will have to pay large fines and penalties. If a Russian citizen wins a lottery held in another country, then the provisions of international treaties are taken into account.