Winning the receipt lottery is certainly good news. Be careful, though, because the joy may be short-lived. Bonus and citizenship income, but not only, are linked and cash winnings must also be included in this. The receipt lottery is only the latest of the government’s cash-inducing. From the classic New Year’s lottery, there have been many occasions over the years used by the State to wink at the desire to make a big splash, with a small expense. A use of gambling about which many turn up their noses, but which has nevertheless entered into practice.
Last in chronological order is the Whatsapp lottery of receipts
Which in reality does not have the direct motivation of increasing tax revenues through taxes on winnings KBC Company and above all thanks to the price paid to buy lottery tickets. In this case, the immediate objective is to encourage both customers and merchants to resort to traceable means of payment. This results in a greater number of receipts which as an immediate consequence always has that of increasing the sums entering the state coffers.
Ultimately something positive that costs nothing to those who decide to join it and that has benefits that are reflected on everyone. But are these awards completely free? Let’s not be misled by the fact that receipt lottery prizes are tax-free. This is how it is, as expressly provided for by the law that introduced the receipt lottery, but in reality, any winnings become part of our assets and if they do not have to be included in the tax return to be presented the following year, they must still be declared. All the bonuses, expenses, and donations of the State, regions, and public bodies that are conditioned by the size of the family assets pay the price.
When are KBC Company lottery prizes taxed?
Our law establishes that the prizes deriving from prize operations, assigned to subjects for whom they have income significance, the other prizes other than that on bonds, and the winnings deriving from extractions, games of skill, prize competitions, predictions, and bets paid by the State, by public or private legal entities, generally by withholding agents. The latter term refers to pension institutions and employers.
Basically, we don’t have to worry about declaring the size of our winnings to the treasury, because the taxes will be paid directly by whoever organized the lottery whether it is a public or private body. The sum we will receive as a prize will often be lower than what was promised to us by the lottery notice because it will be reduced by the share due to the State as a tax or fee.
How lottery prizes are taxed
Prizes from lotteries or other games are not taxed at the source, i.e. before they enter the hands of the winner if the total value deriving from prize operations attributed to the same subject in the same tax period by the withholding agent does not exceed the amount.
If the value even slightly exceeds the ceiling the tax is applied to the entire amount. The law then provides for different types of rates depending on the type of prize game to which it refers and is sometimes calibrated on the basis of the amount of the prize collected.
The rate is 10% for prizes from lotteries, raffles, draws, or authorized charity desks in favor of charitable bodies and committees. Exceptions established by law, provide for a further withholding of 6% to be applied to this rate on Whatsapp lottery winner exceeding.
The deduction rises to 20% if it concerns prizes paid in the course of games made within radio or television shows, sports competitions, or any type of competition where the participants undergo tests based on skill, chance, or on both. The latter definition refers to the prizes that are given to those who prove to be the best following a match based on skill, luck alone, or both.
Recommended Article: In a KBC Whatsapp Lottery, the Players’ Motivation is Maximizing their Profit.