How to pay tax on earned win

Many have won the lottery. Many have lost. Someone lucky, some do not. Many of those who won the lottery, the tax on income of physical persons were not paid either because of the meager winnings, either because of legal illiteracy. Many of those who did not pay the tax was subsequently involved not only tax liability but also to criminal liability. In some cases, you must pay tax on the income of individuals received winnings and to what extent, and in what cases is it to do?

By virtue of the provisions of paragraph 2 of article 224 of the Tax Code of the Russian Federation everyone who won a prize or winning in contest, game or any other activity for the purpose of advertising goods, works and services, is obliged to pay 35% of the gain in excess of the amounts stated in item 28 of article 217 of the RF Malogolovets.

Under the provisions of paragraph 28 of article 217 of the RF Tax Code shall be exempt from taxation of any winnings and prizes in the contest, the game and any other event conducted for the purpose of advertising goods, works and services, if the winning amount or prize does not exceed 4 000 rubles for the tax period.In accordance with the provisions of article 217 of the RF Tax Code the tax period for tax on income of natural persons is a calendar year.

Therefore, if You receive a winning in contest, game or any other activity for the purpose of advertising goods, works and services, and the amount of your winnings was less than 4000 rubles, in this case, the tax to incomes of physical persons do not need to pay.If in this situation, the payout amounted to more than 4000 rubles, you will need to pay tax on incomes of physical persons with the sums exceeding 4,000 rubles at a tax rate of 35%.

However, if the amount of winnings and prizes received during the games, competitions, quizzes and sweepstakes, is not connected with advertising of goods, works, services, moviegraphy obliged to pay the tax to incomes of physical persons at the rate of 13 %.

The effect of subparagraph 5 of paragraph 1 of article 228 of the Tax Code of the Russian Federation to such winnings include winnings paid by organizers of lotteries and organisatorischen games, with the exception of the winnings paid by the bookmaker and tote.

Therefore, in order to determine the rate of the tax to incomes of physical persons shall be governed, need to figure out in the framework of the event the resulting winning the event, held for the purpose of advertising goods, works and services, or in the event that is not associated with advertising of goods, works and services.

Consider specific examples.

If you've won on a lottery ticket, for example, of a lottery "Russian Lotto" 10 000, you must pay the tax to incomes of physical lico rate of 13%, i.e. 1 300 rubles, while it is your responsibility to submit the tax Declaration under the tax to incomes of physical persons not later than 30 April of the year following the expired tax period (paragraph 1 of article 229 of the RF Tax Code).

If You won the lottery, for example, a digital video camera cost 18 000, you must pay the tax to incomes of physical persons in the amount of 35% of the digital camcorder, as well as responsibility to submit the tax Declaration under the form 3-NDFL in the statutory period.

If You won a lottery cash prize in excess of 4 000 rubles for one tax period, the organizer of a stimulating lottery is obliged to deduct the tax to incomes of physical persons at the rate of 35% with amounts in excess of 4000 rubles as a tax agent. In this case, you are not required to submit a tax Declaration on the tax to incomes of physical persons to the tax body at the place of residence and to pay the tax yourself.

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