A big win in the lottery, the jackpot - anyone who wants to play at least once in his life dreams of it. But few know that winnings in various quizzes, promotions and lottery tickets are taxed. Lottery tax can be levied immediately - the lucky one is given what is left on his hands, or he must deduct it from the total amount and pay it on his own.
Regulatory acts, laws, documents
The tax on winning the lottery and the procedure for payment of the won amount is carried out in accordance with the Civil Code and the Tax Code. So, in article 228 of the Tax Code it is indicated in which cases tax is imposed on lottery winnings:
- If the gain from participation in lotteries, promotions and other gambling is issued in cash - 13%.
- If the prize is property: an apartment, a plot, a car, household appliances, products, clothes - 35% of the indicated value.
- For foreign residents participating in international lottery campaigns on the territory of the Russian Federation, 30% of the amount won.
According to the latest changes in the legislation regarding the conduct of gambling and participation in them, only companies operating under state administration and control are allowed to conduct lottery drawings in the country. The fact is that gambling throughout the country, with the exception of some regions, is prohibited. Lottery draws are also a variety of them, which means that they also fall under the ban. But since they have their own characteristics, they were allowed, but only subject to certain conditions.
Private lottery companies that existed earlier often violated these conditions. For example, they did not comply with the rules for issuing and placing ticket runs.
Therefore, the ban applies only to those companies that specialized in the issue of lottery tickets. Other participants, for example, private stores and supermarkets can arrange prize draws, playing them by numbers, like in lotteries. But such events must be held in accordance with the adopted rules, and the winner will have to pay the lottery tax for the win.
Types of lotteries held in Russia
On the territory of the Russian Federation, various lotteries and promotions are held. Despite their diversity, by the way they are carried out, they can be divided into circulation and non-circulation.
A lottery lottery is considered when a company issues a limited number of tickets that are distributed over a certain time between all participants. The draw on them occurs simultaneously. Up to this point, all participants do not know which tickets are winning and which are not.
A lottery-free lottery is a lottery that already contains information about which ticket is a winning one and which is not. Usually they are cards with a special coating. It must be erased to find out the result.
Both lottery and non-lottery lotteries can have different forms of issue: in the form of receipts, cards, tickets. An electronic version is also possible. They can be exclusively Russian or international. Their number, terms and conditions of payment 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 drawings. But regardless of the type and form, every win in the lottery is taxed.
Promotions, sweepstakes and lotteries held by private stores
The winner of 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 issued as a prize, then its value should not be higher than this amount.
Sometimes large supermarkets, household appliances stores, large trading companies give out 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 tax on the lottery will be 35% of the cost.
A similar tax rate applies to participants in incentive lotteries. Such draws suit 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 offer do not provide for the exchange or sale of a gift, then you will have to refuse to win or try to find the right amount.
What size wins are tax free?
In accordance with Russian tax legislation, any income is taxed, regardless of its amount. Only pensions and subsidies are not taxed. Winning the lottery is considered income. Therefore, the most common question, how much tax is paid from the lottery, can be answered: with any. You will be required to pay tax, even if the gain is only 100 rubles.
What if the winnings were too expensive?
If you won a car, an apartment or a piece of land in the lottery, do not rush to rejoice. In some cases, these wins are "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 tax on the property lottery in Russia is 35%. Accordingly, this is not luck, but a loss. And you will have to either refuse or accept the prize by paying an amount that is higher than its cost. Although such lotteries are considered fraudulent, it is not always possible to prove the guilt of the organizers.
Which lottery companies pay payout tax automatically?
It all depends on what prizes are being drawn. Cash prizes are issued already with tax paid. 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 out, then the winner pays the tax himself. Thus, they pay tax on the Russian Lotto and Golden Horseshoe lotteries, which often play 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. In the territory of the Russian Federation, the percentage of tax on winning the lottery on them is 13% of the total winnings. If Russian citizens participate in sweepstakes in 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 tax yourself?
If the organizers of the lottery for some reason did not take into account the tax in the amount of the prize, they will have to pay it on their own. To do this, you will need to download or purchase the NDFL-3 form from the 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 office 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 of next year.
What will happen if you do not 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 penalty runs up first. Then, if the taxpayer does not pay, then the case will be submitted to court. In this case, the offender will face another punishment:
- For tax evasion, the taxpayer faces a fine of 30% of the amount of the tax payment. If you knew that you were required to pay, but for some reason did not do it, the penalty would be 40%.
- For each day of delay, including the time spent on litigation, a penalty is charged.
- If the income was not declared in a timely manner, you will face a fine of 5% of the amount of tax that 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 may not 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 amounts. If the amount of the debt amounted to more than 300 thousand rubles or more, the court may decide on arrest for a term of up to one year or a fine in the amount of from 100 to 300 thousand rubles. Therefore, if you won an expensive prize, for example, an apartment or a car, but you do not have the means to pay the tax from the lottery, you must 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 account such a development of the situation. Instead of a prize, the winner can be issued a money certificate in an amount equal to the value of the prize minus tax.