What Is a Lottery Tax?

In Japan, lottery tax is a tax levied on a lottery maker with a certain number or more. It is based on the issuance of lottery tickets, and it also distinguishes between printed paper products.

Lottery tax

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In Japan, lottery tax is a tax levied on a lottery maker with a certain number or more. It is based on the issuance of lottery tickets, and it also distinguishes between printed paper products.

Because the Chinese government monopolizes the issuance of lottery tickets, the lottery tax should be levied on the purchase of sports lottery tickets. However, before the levy is launched, the legal status of sports lottery should be clarified, the status and nature of the issuer, the use of issued funds, etc., or else the existing lottery system will adopt different tax treatment for welfare lottery and sports lottery. No legal basis. Scholars continue to study the tax rate and collection methods of lottery tax.

Chinese name

Lottery tax

Meaning

A tax imposed by the lottery maker

Types of

tax

Meaning

Better management

China's lottery taxation, according to the State Administration of Taxation's "Notice on Taxation of Social Welfare Awarded Issuance Revenue", China's lottery taxation is divided into the following situations; ^[1]

Different countries have different tax laws and different lottery management systems, so the regulations on lottery tax payment are also different. According to the situation in more than 50 countries, most countries do not pay taxes on the net lottery of lottery, and are used by lottery sponsors or directly through public finance for public welfare undertakings in their country; a few countries pay net lottery taxes and adopt low tax rates. Proceeds are still directly in the hands of the lottery sponsors. In order to maintain the attractiveness of the prizes for the lottery winners. Most countries do not pay personal income tax on bonuses. According to available information, only some U.S. states and the former Yugoslavia collect personal income tax on bonuses. ^[2]

I. Countries that do not pay tax on net lottery income

The total proceeds from issuing lottery tickets in Japan are divided into five parts:

1. The bonus paid to the winner of the lottery, accounting for about 45.7%;

2. The pure income obtained by the local governments that issue lotteries is used for the construction of various public utilities, accounting for about 41.2%;

3. Sponsor certain public utility activities through the Japan Lottery Association, which accounts for approximately 3.0% of total revenue;

4. The remuneration paid to the lottery seller and the commission fee for the payment of bonuses, etc., this portion accounts for about 7.1%;

5. Printing fee, publicity fee, lottery membership fee, etc. of lottery tickets account for about 3.0%.

France formally established a national lottery company on May 31, 1933, and was formally approved by economic law. The purpose of starting the lottery company was to profitably fund veterans and agricultural disaster victims. The National Lottery Board is administered by the General Lottery Secretariat directly under the Ministry of Finance. According to data from 1993, the company's annual turnover is more than 30 billion francs, with a net income of more than 8 billion francs (about 37.5% of the turnover), all of which are turned over to the state finance for public welfare.

Finland The net proceeds of Finland's operation of lottery are handed over to the country, which is controlled by the education and culture departments. In 1991, the Finnish lottery company's net income reached 1.264 billion marks. The arts that benefited the most were 40.4% of them; 36% of sports; 12% of science; and 11.6% of youth work.

Switzerland Switzerland does not pay tax on net lottery proceeds and prizes for winners. For example, the "French Franchise Lottery Eighth Convention" clearly stipulates that: each signatory state of this Convention voluntarily agrees to operate a lottery called "Swiss Francophone Lottery" in their territory according to their cantons; Charity and charity.

Countries that pay tax on net lottery income

Germany, the sovereignty of German lottery issuance in the states and federal municipalities, 16 states and cities in the country have corresponding 16 economic and organizational lottery companies independent of each other ...

The lottery income distribution ratio is as follows:

50% returned to the winner;

16.6% state tax (payable to state government);

17.11% allocated to cultural, social welfare, sports and cultural relics protection;

7% remuneration for staff of lottery reception stations;

9.3% State and district lottery companies organize and manage work expenses, wages, printing expenses, etc.

Bulgaria Bulgaria has an independent lottery bureau, and 50% of its total lottery sales are returned to the winners as prizes. The remaining 50% of the income distribution is: 10% issuance management fees; 35% is used as public welfare funds for direct distribution and use; 5% is paid to the country tax.

Countries that pay personal income tax to the winners of the lottery

United States The United States is a federal state. Lottery tickets are issued in units of states. The practices vary from state to state. According to statistics, about half of the states pay bonus income tax, and the other half are exempt.

Arizona and Cronado: Individuals who win a prize of more than $ 5,000 at a time will pay 24% of their personal bonus income tax, including 4% state tax and 20% national tax.

Minnesota: Winners who receive a bonus of more than $ 5,000 at one time will pay 28% of the personal income tax, including 8% state tax and 20% national tax.

The former Yugoslavia levies individual grade 5 winners with progressive taxes. Except for the bonus amount of less than 50,000 dinars, the bonus tax is not levied. The other percentages of bonus taxes are: 50,000 to 200,000 dinars, 15%; 20,000,000 dinars, 17%; 5 million dinars, 19%; 5-10 million dinars, 21%; 1 million dinars or more, 30%.