Tax on lottery winnings (2019) in Russia: how much, how to pay

Have you become the owner of a lucky ticket and finally won the lottery? Now you are faced with quite logical questions: “Where and when do you need to report your lotto winnings in order to collect them?”, “What tax on lottery winnings do you need to pay in order to avoid problems with the law?” and “Is it possible to avoid paying tax on a lottery prize at all?”

In this article you will receive answers to the most pressing questions about tax deductions in Russia that your prize in a promotion, Stoloto or any other lottery may be subject to.

Play the best lotteries in Russia

Differences in tax on lottery and share

The percentage charges on lotto winnings and the promotion prize charges will differ significantly. Agree, there is a difference in giving the state 35% of the amount of a lucky ticket or only 13% of the lotto prize.

If you win a promotional prize from a chip manufacturer, cigarette manufacturer or hardware store, this will be considered a promotional win. In this case, the tax percentage will be 35% of the total value of the lotto winnings.

Additionally, the promotion is often referred to as a “sweepstakes incentive.” Participation in it can be absolutely free or almost free. You don't have to pay extra money to participate in a drawing from a chip manufacturer if you've already bought a pack of it.

Personal income tax on lottery winnings, unlike promotions, is only 13%.

IMPORTANT! If you are unable to pay interest to the state for too expensive and “suddenly fallen happiness,” you have every right to refuse to receive the “big jackpot” in favor of its cash equivalent.

You can read more about tax rates in clauses 1.2 of Article 224 of the Tax Code of the Russian Federation.

Winning tax rate and amount

The amount of tax on winnings does not depend on the size of the winnings, but on its source. Most winnings are subject to ordinary personal income tax at a rate of 13%. But in some cases the tax is 35%. Let's figure out when and how much to pay.

Art. 224 Tax Code of the Russian Federation

Winnings in lotteries - 13%. The formula for calculating tax in this case is as follows:

Tax = (winnings − 4000 R) × 13%

For example, your total winnings in two lotteries is 10,000 RUR. Then the tax will be calculated as follows: (10,000 − 4000) × 13% = 780 RUR.

It's not always easy to know if you're in the lottery. For example, for purchasing ice cream at a kiosk, you may be given a ticket to participate in a drawing. It looks like both a lottery and a promotion, and the tax rates in these cases are different. Let me explain how to distinguish them.

Only the state can organize a lottery. It entrusts it to the operator - a company with the right to such activities. Operators are determined by authorities, they also enter into contracts with them and approve the conditions of lotteries. The name of such authority, the name of the operator and the number and price of the ticket must be indicated on the lottery ticket.

Art. 2 138-FZ “On lotteries”

Art. 12 138-FZ “On lotteries”

If your ticket does not have this information, it is not a lottery ticket. Often manufacturers and retail chains hold similar prize draws for advertising purposes. For example, to increase sales or talk about a new product. Then the tax on winnings will not be 13%, but something else.

Prizes in promotions - 35% of their value. The tax will be calculated according to the following formula:

Tax = (winnings − 4000 R) × 0.35

In this case, the organization or entrepreneur who carried out the action are tax agents. They must determine the value of the prize and pay the tax for you.

Art. 226 Tax Code of the Russian Federation

Usually, the organizers of promotions immediately lay down taxes, and you receive the promised prize in full: no one will require you to give 35% of the prize in cash. The company will give you a prize and also pay into the budget.

Moreover, the organizer will have to pay more than 35%: this money must be withheld from the taxpayer, and not just taken from your budget. Therefore, companies artificially increase the prize fund using this technique: the prize consists of a material and conditional monetary part. The organizer informs in the rules that he will pay personal income tax at the expense of the monetary portion. You will not receive the money in your hands - the monetary part will be completely spent on taxes for both parts.

For example, you bought cottage cheese, registered a promotional code and won a trip to Kenya. The supermarket chain that came up with the promotion determined the cost of the trip at 1 million rubles - this is the material part. Additionally, the organizers give 540 thousand in money, but immediately warn that you will receive less than half in your hands. Then it turns out that less than half is 0 RUR. Then the promised money goes to the state, and you don’t owe anyone anything and go to Kenya. Budget calculations do not concern you, and you do not need to check them. But we will show you how the network will pay the tax authorities for you.

The material part + the monetary part is the tax base.

The organizers of the action will ask you for a statement that during the year you have not deducted 4,000 RUR. If you provide such a statement, the network will deduct it from the tax base and pay 35% to the budget. If you don’t provide it, they will pay you without deduction.

Tax on material parts: 1,000,000 × 0.35 = 350,000 RUR.

Tax on the monetary part, if you have not previously used the deduction: (536,308 − 4000) × 0.35 = 186,308 RUR. Monetary part after payment of tax = 350,000 RUR. The organizers will give these 350,000 RUR as tax for the material part, and you you will go to Kenya, fully paying off the budget for your winnings.

Tax on the monetary part, if you previously used a deduction: 538,462 × 0.35 = 188,462 RUR. The monetary part after paying the tax is again equal to 350,000 RUR, and they go towards the tax for the material part.

It turned out that to reward you with a trip for 1,000,000 RUR, the organizer paid not 35% to the budget, but about 54%.

If the organizers do not use such a scheme, they can shift the payment to the prize winner. They have the right to inform the tax office that the tax cannot be deducted: they say, the prize is natural, it cannot be divided into parts. In this case, they will submit the declaration for you, but with a debt. The tax office will send a notification for personal income tax payment. The organizers are required to notify you in writing of such a turn of events by March 1 of the year following the year of winning. The value of the prize and the amount of tax will also be reported.

Bookmakers - 13%. The bet does not depend on where you won: on the premises of a legal Russian bookmaker, on their website, or on the website of an illegal Russian or foreign bookmaker.

But there is a difference in what to subtract 13% from: the tax base depends on the amount you withdraw from the bookmaker’s account. If you win and withdraw less than RUB 4,000 per year, you don’t pay tax at all. The situation here is similar with lotteries and promotions.

If you withdraw from RUB 4,000 to RUB 15,000 per year, the tax base is everything you received in total, regardless of how much you put in.

Tax = (amount of withdrawals for the year − 4000 RUR) × 0.13

To pay the tax, add up all payments up to 15,000 R in all offices for the year, subtract 4,000 R from them and calculate 13%. You owe this amount to the state.

You deposited 5,000 RUR into the bookmaker's account. You played successfully and increased the amount to 10,000 RUR. Your profit is 5,000 RUR. You withdrew this money. Now, from the point of view of the tax authorities, your winnings, or income, is 10,000 RUR. Personal income tax is calculated from this. In such cases, the state is not interested in the fact that half of this amount is your own money, which you deposited to start playing.

Let's say this year you withdrew another 3,000 R and 7,000 R. The total amount of payments is 20,000 R. Reduce the tax base: 20,000 R - 4,000 R = 16,000 R. Calculate 13% of this amount: 16,000 R × 0, 13 = 2080 R. This amount will have to be paid regardless of how much you actually earned. Investments are not included in the calculation.

If you withdraw more than RUB 15,000, your investment is taken into account. The tax base is considered to be the difference between the withdrawal amount and the deposit amount. A deposit is the money you have deposited into your bookmaker account. In this case, the office becomes a tax agent and calculates personal income tax itself, not at the end of the year, but immediately upon withdrawal of funds. You don't need to report or pay.

Art. 214.7 Tax Code of the Russian Federation

Tax = (withdrawal amount − deposit amount) × 0.13

Gambling in casinos - 13%. Here, too, the bet does not depend on whether you won in a legal casino in the gambling zone, in an illegal offline casino outside the gambling zones, in a Russian or foreign online casino.

Tax = (winnings − 4000 R) × 0.13

You need to report and pay yourself: the casino is not a tax agent, regardless of the size of the winnings. Read our analysis on this topic.

Foreign lotteries - 13%. The tax here is also calculated using the standard formula:

Tax = (winnings − 4000 R) × 0.13

Art. 209 Tax Code of the Russian Federation

If you bought a lottery ticket from another country, you may be required by the laws of that country to pay something with your winnings as a foreigner. But it is still necessary to pay personal income tax to our budget: income from lotteries is not subject to double taxation agreements.

subp. 3 p. 1 art. 228 Tax Code of the Russian Federation

Winning a car. The bet depends not on what exactly you won, but on what you played. If the car was received as a result of participation in a competition or show of a non-advertising nature, you need to pay 13% of its cost. If received as a prize in a promotion - 35%.

We have already discussed above how organizers usually pay tax for the winners in such cases.

Income from participation in many major sporting events is not taxed at all. For example, athletes do not pay personal income tax for cars that the state or competition organizers award for performances at the Olympics, World or European Championships.

clause 20 art. 217 Tax Code of the Russian Federation

Is it possible to reduce the tax?

Even though any winnings are considered “income” by law, you can still avoid paying taxes on your lotto prize.

You will not have to pay tax on lottery winnings if the winning amount is 4,000 rubles per year or less.

In other words, if you played the lottery several times a year and won in total less than 4,000 or exactly 4,000 rubles. in lotto, you don’t have to pay fees. If the winning amount is 4001 or more, then the prize is taxed.

Bookmakers

One of the organizers of gambling is bookmakers. Their visitors can bet on the outcome of certain sports competitions. Having won on sports bets, you do not have to burden yourself with filling out a declaration and transferring the fee. The bookmaker withholds and transfers funds to the budget from the amount of 15 thousand rubles. and more . You receive “net” income minus deductions. If the winnings are less than 15 thousand rubles. The winner declares income and pays tax themselves. Since sports betting is a risky game, winnings at a bookmaker are subject to a 13% .

A feature of the taxation of such income is that the tax base is reduced by the amount of the bet made - this is a deduction. That is, the 13% fee is calculated not from the entire winnings, but from the difference between the bookmaker's winnings and the previously placed bet.

Example No. 3: Vorobiev F.D. is a client of the bookmaker "Sport Igra". In June 2021, Vorobiev placed a bet on the result of the Russia-Wales football match in the amount of 324 rubles. The result of the match was correctly predicted by Vorobyov, so he won 32,400 rubles.

Let’s find out on what amount of winnings the tax will be calculated and how much Vorobyov will receive as income. Since the fee is not the entire amount of money won, but minus the bet, then 13% must be calculated from 32.076 (32.400 - 324). The Sports Game office will pay tax in the amount of 4.169 (32.076 * 13%). Vorobyov will receive 28.231 (32.400 – 4.169).

Winning up to 4000 rub. bookmakers are also tax-free. The tax base for winnings in gambling is determined by the arithmetic operation “win” - “bookmaker’s bet”. This specificity of determining income differs from winnings in lotteries, where the cost of the ticket is not deducted.

Tax up to 15,000 rubles

In cases where you win an amount from 4,000 to 14,999 per year in the lotto, you need to pay the interest yourself in the form of personal income tax. The amount of such collection will be 13%.

The tax return in this case is submitted in the same way as when paying any other income of an individual.

If you have never encountered the problem of paying personal income tax on your own, and before winning the lotto, your employer solved all the technical difficulties for you, you can simply come to the tax office at your place of residence to receive detailed instructions.

Winnings in lotteries

Surely everyone has purchased a lottery ticket at least once in their life. But few people know that, having received the coveted “jackpot”, part of the amount will have to be donated to the budget. Below is the calculation and conditions for paying tax for so-called risk lotteries, in which you need to pay a certain fee to participate (for example, buy a lottery ticket).

Tax rate

What is the tax on lottery winnings? The bet is 13% of the total winnings. The winner can fulfill his obligations to the budget in one of the following ways: submit a declaration and pay the tax in the general manner, or receive income from the lottery service minus the fee.

A lottery participant must pay tax if the winnings range from 4,000 rubles. up to 15,000 rub. When the winnings are less than 4,000 rubles, then there is a complete exemption from tax. If 15,000 rub. or more, the tax is paid by the lottery operator.

The rules for drawing some lotteries provide for the terms of payment of the winnings to the winner minus the budget payment. In this case, the lottery service assumes full responsibility for tax obligations. The winner has no choice but to receive the “net” amount due. If the organizer transfers funds to the budget independently, then this information must be indicated in the conditions of the lottery (as a rule, it is posted on the official website of the organization).

With a winning amount of 15 thousand rubles. and more, the lottery organizer is obliged to deal with tax issues. And up to this amount is at his discretion. The lottery service has the right to refuse tax red tape. This means that the responsibility for paying a fee on income received is less than 15 thousand rubles. lies with the owner of the winning lottery ticket.

Declaration of winnings and payment of tax

If you received a cash win in the range of more than 4,000 rubles. and less than 15,000 rubles, then you first need to declare it. It is necessary to submit a declaration in form 3-NDFL in the general manner - before April 30 of the current year for the past year. That is, if you hit the jackpot in 2021, then by April 30, 2020, you need to submit a declaration to any Federal Tax Service, in which you indicate:

your personal data (full name, tax identification number, registration address, etc.);
the amount of winnings received;
calculation and amount of personal income tax, which is subject to payment to the budget (13% of the winnings).

The declaration can be submitted in any way convenient for you:

obtain a document form from the tax office and fill it out on site according to the sample;
download the form on the Internet (on the Federal Tax Service website), print it and fill it out at home. Then send it by mail with a description of the attachment and a delivery notification;
register on the official website of the Federal Tax Service. Next, fill out the form and send it electronically using the “Personal Account” service.

The first method remains the most common so far.
In addition, if errors or inaccuracies are made, the tax officer will point them out. You can then correct or supplement the information on the spot. But lately, tax authorities have been trying to refuse to accept declarations filled out in hand. If you are unable to visit the tax office in person, use postal services: send the document by letter with a notification and include an inventory in the envelope. Having received the envelope, the fiscal service employee will check the presence of documents with the inventory. Then acceptance is complete. The notification stub that you will receive by mail will serve as confirmation that you have submitted the declaration.

To simplify the procedure for filing a declaration for personal income tax payers, there is a special electronic resource. Thanks to which you can fill out and send a declaration without leaving your home. To do this, you need to go to the Federal Tax Service website, register and gain access to your “Personal Account”. Through this service, the declaration is filled out using visual cues, and sent via email. You will also receive information about the acceptance of the document by the Federal Tax Service by e-mail.

By submitting your declaration on time, take care of the timely transfer of tax to the budget. For income received, deductions must be transferred before July 15 of the next year (that is, for 2019 - before July 15, 2020). When paying in cash or by credit card, keep payment documents (receipt, payment order, bank statement). If any disputes arise with the fiscal service, they will serve as confirmation that you have fulfilled your tax obligations.

Example No. 1: 05/23/2019 Matveev L.D. purchased a “Russian Lotto” ticket and won 13,600 rubles. Let's calculate how much tax Matveev must pay? Since this is a lottery based on risk, and participation in it requires financial investments in the form of purchasing a ticket, Matveev is obliged to transfer 13% to the state: 13,600 * 13% = 1,768 rubles.

The terms of the Russian Lotto stipulate that the fee is paid by the winner, so Matveev must declare income by 04/30/2020, and pay the fee by 07/15/2020.

At the same time, 4000 rubles. (the limit up to which is exempt from tax) is not deducted from the amount of winnings (tax base), which is multiplied by the tax rate (13%).

Winner of a lottery where the winning amount was up to 4,000 rubles. or more than 15,000 rub. does not submit a declaration. When the winning amount is 4 thousand rubles. no tax is paid at all. If there were several winnings and for each lottery the amount did not exceed 4 thousand rubles, but for the tax year (from January 1 to December 31) the amount of prize payments exceeded the 4 thousand limit, then a tax burden arises.

For example , Sintsov A.A. I won three times in the TV lottery during 2019. In drawing No. 23 of 02.20.2018, the amount is 3,500 rubles, in drawing No. 144 of 05.31.2019 - 2,300 rubles. and drawing No. 322 of September 10, 2019 - 2500 rubles. All income was in different editions, for which there was no excess of 4 thousand rubles, but the total amount for the year was 8,300 rubles, so personal income tax will have to be paid. In this case, the base is determined by subtracting the tax-free limit (RUB 4,000) from total income. That is, as in our case, the tax is paid in the amount of 559 rubles. ((8300 – 4000) X13%).

If the amount is more than 15 thousand rubles , then the tax is generated and paid by the lottery organizer, subtracting the corresponding amount from the winnings. We are talking about one draw here. But there may be several tickets in this drawing.

Exception. If the amount of income is more than 15,000 rubles. arose over the entire year from several winnings (the value of each was up to 14,999 rubles), then the citizen who won the lotteries must submit a declaration himself and pay the money to the budget himself. In this case, the cost of lottery tickets is not deducted from income.

Tax equal to or higher than 15,000 rubles

If you are a little luckier, and the value of the lotto prize is more than 15,000 rubles, government fees are paid by the lottery organizer himself. Keep in mind that sometimes the organizers of the draws promise a high win in advance so that you receive a “clean” round sum after paying all the fees.

Therefore, if the company running the incentive lottery paid you 1 million instead of the promised 1.5 million, there is no point in accusing it of fraud.

Everything is exactly the opposite - the organizer made sure in advance that in the future you would not have to suffer and draw up declarations yourself. Thanks to the efforts of such an organizer, you can safely spend the amount you win in the lottery at your discretion.

Using a simple example, how to calculate the net amount of lotto winnings that you will receive in your hands:

If you received a prize worth 40,000 rubles, only 36 thousand of the entire amount will be taxed. Next, 36 thousand needs to be multiplied by 0.13, you get 4680 rubles. This is the amount of the payment that must be subtracted from 36 thousand.

As a result, you will receive an amount of 31,320 rubles.

What happens if you don't pay for winnings?

Such an act falls under the definition of “tax evasion.” The following sanctions may be applied to violators:

The penalty for non-payment of taxes is punishable by a fine of 20% of the total amount owed. If during the trial it is revealed that a citizen deliberately evaded tax payments, the amount of the fine will double and amount to 40%.
For each day of delay, a penalty is charged in the amount of 1/300 of the refinancing rate established by the Central Bank of Russia;
Failure to file a tax return on time will also result in a 5% penalty for each month late. It should be clarified that the amount of such penalties cannot exceed 30% of the amount of unpaid taxes, but not less than 1,000 rubles.

Regarding large winnings, punitive measures are becoming more stringent. For example, if the tax debt exceeds 900,000 rubles, the defaulter may be arrested for up to 12 months or fined in the amount of 100,000-300,000 rubles.

Please note that based on a court decision, tax debt can be collected by force. For example, certain amounts will be withheld from the debtor’s salary until the entire debt is repaid. Previously, the accounting department of the enterprise receives a writ of execution.

Where and when should I report my winnings?

The 3-NDFL declaration must be submitted to the tax office that is closest to your place of residence.

Today, you can submit an application remotely via the Internet in the taxpayer’s personal account. To do this, you need to go to the “Income from sources in the Russian Federation” section or to the “Income from sources outside the Russian Federation” section. Focus on your personal situation.

Now you know how to pay interest fees on winnings in Stoloto state lotteries and any other similar lotteries.

Deadlines and procedure for filing a tax return

Such a declaration is submitted on a general basis within the time limits established by law. The declaration is submitted in form 3-NDFL; if income was received in the current year, income must be declared before April 30 of the next year.

Sample declaration 3-NDFL

The declaration contains the following information:

Personal details of the winner: full name, passport details, tax identification number.
The total amount of winnings.
The amount that needs to be included in the budget.

You can receive the declaration during a personal visit to the territorial division of the tax service or download it from the Federal Tax Service website. When filing a tax return, you must take into account that the due deductions must go to the budget no later than July 15. The declaration is submitted in paper and electronic form. In the first case, the form should not contain strikethroughs or corrections. Ideally, such a declaration should be filled out on site, according to the established template.

Tax must be paid by July 15