With the Christmas Lottery draw just around the corner, it is time to answer the million dollar question of these holidays: what part of the tenth winners does the Treasury take?
This year the same rule is maintained as last year, so all the winners of a prize will be free from paying taxes to the Treasury. From that figure, the winners will have to pay 20% to the Tax Agency.
From TaxDown they propose three practical examples of how much the disbursement will be in the case of being awarded the first, second and third prize.
For every tenth winner of the Christmas Gordo with 400,000 euros, the first 40,000 euros will be exempt from taxes. Of the remaining 360,000 euros, 20% will have to be paid to the Treasury, so 72,000 euros will go to the Tax Agency and 328,000 for the winner.
In the second prize, endowed with 125,000 euros, taxes will be paid on 85,000 euros (after subtracting the 40,000 that are exempt). In other words, the Treasury will keep 17,000 euros of the total and the winner will receive 108,000 euros.
And in the case of the winners of the 50,000 euros of the third prize, they must give the Treasury 2,000 euros (20% of 10,000) and they will keep 48,000 euros.
How are the Christmas Lottery prizes declared?
The CEO of TaxDown, Enrique García, explains that “the Christmas Lottery prizes do not have an impact on the personal income tax base” but that, however, the possible returns that this money obtained can generate for the taxpayers must be declared. winners, such as bank interest. Therefore, the prize must be included in the Income statement for next year 2022 “.
Once the tax doubts have been resolved, another classic remains to be resolved: what happens if I share my lottery ticket with friends or family?
As established by the Tax Agency, in the case of shared prizes in which the prize is distributed among all the participants, the 40,000 euros that are exempt must be distributed among all the beneficiaries in proportion to their percentage of participation, and who proceeds to the distribution of the prize that appears as the sole beneficiary (or as collection manager), must be able to prove to the Tax Administration that the prize has been distributed to the holders of shares, therefore it is necessary to identify each winner as well as their participation percentage.
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