Winning in the lottery can push life upside down. However, such a handful will meet only a handful of people. Many groups of people win knowledge or skills competitions. Do you know when you, as a winner, will get a men’s game, not a match, and when will you have to tax the game yourself?
If we want to analyze the tax obligations of the winner in a competition of any type, we must surprise in the nature of the competition itself and the lottery. The first method of permitting, announcing and declaring an event of this type of taxpayer will lead to the correct way of tax play. Of course, the fee usually does not enter at the time of entering the competition or when buying a lottery ticket, but in the event of a refund, he will have to deal with such a question in the end. How are the events with the monost of Lenny?
The need to allow and acceptance only notified to the financial board
Today we move in an environment where we are surrounded by literally hundreds of games, lotteries, odds offers, consumer competitions, etc. In our first place there is a rule. 202/1990 Coll., On lotteries and other similar games. In this account, the types of competitions are clearly defined; This will be based on an assessment of the nature of the competition and only the first person with a share in the Czech Republic can apply for it. Permitted by either the municipality or the Ministry of Finance.
In addition to actions that require a permit, there are smaller companies (competitions, surveys, prize events), where it is not required, but the operator must submit a financial series of so-called notices.
If the action is allowed, the game is exempt regardless of it vi
If you are a winner, for example, fifty million in the lottery, then your win will be fully exempt from tax. For your safety, you should have the competition operator submit the first mentioned permit issued by the competition authority. Such a winner only collects the game and do not follow from him and gave him administrative duties. The victory of such a hundred meetings very much tries a group of people. Similar data regimes have, in practice, the possibilities of games available in practice – for example, slot machines or betting on the results of sports events. Even in their case, games are exempt from taxes, regardless of the vi achieved.
Since 2008, the special rate has been reduced from the original twenty to fifteen percent
If the prize comes from the competition operated only on the basis of the announcement (most often it is an advertising competition or lottery, public competition, etc.), then the prizes or games are not fully exempt from taxes. According to the law, in such a case the limit value is ten thousand crowns, with the fact that winnings other than this amount are exempt from tax obligations. In the context of games not exempt from tax, there has been a change in tax since 2008. If your winnings are more than 10 thousand crowns, a new special tax rate of 15% will be used instead of the percent used last year. This tax and the financial series are paid by the payer (competition operator). The winner will receive a certain dream of this day.
|In practice, the winner may sometimes encounter a situation where the operator competes to pay him the entire amount of the game and warns him that he must tax it. Even the operator often tries to get rid of his tax obligations by various declarations that he fills the game tax-free, etc. In such a case, you should draw the attention of the taxpayer (operator) to his obligations when applying the special tax rate. If even in this case he does not pay the tax through a special tax rate, you should tax the game yourself in the tax return.|
Even tax must be paid, the method is different
Let’s try to demonstrate in the above practice on a simple example. In December 2007, Mr. K. won a public tender notified to the Financial Board. The winner’s reward was a thousand thousand crowns. According to the above model, a raft of twenty percent (3,200 K) and the remaining 12,800 K is paid to the winner. Very simple and logical.
Somewhat complicated is the situation when the game is in real form. This is even a more frequent case, which is costly from the competition operator’s point of view. Very often, the subject of the game is the products manufactured by the operator.
Mr. J. increased the knowledge of the history of Czech hockey in the knowledge competition and as a winner he won quality skates for a thousand thousand crowns. In this case, it is not possible to apply the same procedure as for money games, where it was easy to reduce 20% and send them to the bank. The fact is that the winner won everything for a thousand thousand crowns and do not knock down twenty percent of the day. The correct procedure is that these eight thousand crowns make up the tax for 80% and the operator must ask for the value in the remaining twenty. The tax that the operator has to pay is 4,000 K (for games in 2008, the same procedure would be followed, but a special tax rate of 15% would apply).
Beware of regular business games
You should be left with everyone for whom such games in competitions become repeated and have the character of entrepreneurship. For example, if you are a magician or a professional athlete who visits every weekend, regardless of your specific winnings, this is income according to paragraph 7 (income from business and other self-employment).
In this case, the tax regime is the same as for ordinary businesses. It is a taxable income regardless of its nature and the related expenses can be applied in the usual way. For the tax period, such a professional tax return and the calculated tax base serve as a basis for the calculation of contributions to health and social insurance.
In addition, you can demand a lot of lottery, lottery games or similar competitions – the best in these taxes free.