Hacienda will keep 72,000 euros of each “fat” Christmas prize

By: MRT Desk

Published on:

Hacienda will keep 72,000 euros of each "fat" Christmas prize

The Ministry of Finance will keep 72,000 euros of each “fat” prize of the Christmas Lottery, in application of the special tax in force since 2013, with which the winners will receive 328,000 euros for each tenth.

All prizes organized by the State Society of Lotteries and State Betting (Selae), including the special Christmas draw held this Thursday, which exceed 40,000 euros are subject to the payment of a special tax, as recalled by the Tax Agency on its website.

This tax is applied in the form of withholding, that is, Selae itself will deduct from the prize – either tenth, fraction or lottery coupon – the corresponding tax at the time of payment, so that the winners will not have to carry out any additional procedure.

According to current regulations, all prizes under 40,000 euros are exempt from the special lottery tax, while those that exceed that amount, in addition to identifying the winner, will have to be taxed at a rate of 20% in the part that exceeds this figure.

Thus, for example, if the “fat” is won, endowed with 400,000 euros, the first 40,000 euros are exempt and the remaining 360,000 euros are taxed, so that the Treasury is left with 72,000 euros and the winner, with 328,000 euros.

In the same way, for a second prize, endowed with 125,000 euros, it would be taxed for the 85,000 euros not exempt, so that the Treasury is left with 17,000 euros and the winner, with 108,000 euros.

The winners of a third prize (50,000 euros) will have to pay 2,000 euros and will keep 48,000 euros, while the rest of the prizes are exempt for not reaching 40,000 euros.

The Tax Agency explains that when the prizes are shared with friends or family, the 40,000 euros exempt from taxation must be distributed proportionally to the participation of each one.

Whoever is in charge of this task will appear as the sole beneficiary or collection manager and must be able to prove to the Tax Agency that the distribution has been made and to identify all the winners.

The technicians of the Treasury (Gestha) calculate that if the first three prizes are distributed, the Public Treasury will enter 163.8 million for this tax, 7.28 more than last year as eight more series have been issued.

Since 2013, the lottery prizes of the State, autonomous communities, National Organization of the Spanish Blind (ONCE), Spanish Red Cross and similar European entities above the exempt minimum – of 2,500 euros until 2017, 10,000 euros in 2018, 20,000 euros in 2019 and 40,000 euros from 2020 – are taxed at a rate of 20%.

Leave a Comment