Wednesday, October 20

How much does the Treasury take with the Christmas Lottery? Christmas Lottery 2020

State collections in the area of ​​Christmas Lottery are an important source of income, which is conditioned by the Christmas Lottery sales. This year the pandemic is marking these sales and forecasts may vary with respect to previous years. However, when distributing the Christmas Lottery Awards the variables when applying the deductions for the Treasury, remain the same as the previous year.

The Ministry of Finance ‘rasc’ last year several million less in the Christmas Lottery. Total raised 175 million euros for the taxation of the extraordinary draw prizes, 13.6 million less than the previous year due to the increase in the exempt minimum up to 20,000 euros, according to the calculations of the Technicians of the Ministry of Finance (Gestha). Specifically, the exempt minimum went from 10,000 euros, to which it increased from July 5, 2018, to the aforementioned 20,000, so that the public coffers will enter this time 7.2% less.

Lottery prize withholdings


Technicians recall that by taxing the Lottery prizes with 20% from 20,000 euros, the winners of the first three categories get 2,000 euros more per tenth than last year, as well as those of the fourth category who no longer bear the tax.

Therefore, the lucky ones who achieve the Christmas Lottery Jackpot, which distributes 400,000 euros to the tenthThey will earn 324,000 euros, while the treasury will keep the remaining 76,000 euros. In this line, the winners with the second prize (125,000 euros per tenth) will deliver 21,000 euros to the Treasury. For their part, the winners of the third prize (50,000 euros per tenth) will have a discount of 6,000 euros.

With the updates explained above, the two fourth prizes (20,000 euros each) will no longer have the 2,000 euros tax from other years.

In any case, the Treasury raise around 30% after the Christmas Lottery Draw 2020 of what is paid each year for the withholdings made in the prizes of the State Lottery and Betting draws, from where the withholding is made directly at the time of collection, so that the lucky ones will receive the amount with the tax already discounted .

Hence, on the other hand, Christmas Lottery Awards have no impact on the income tax of the winners, who will only have to add in their Income Statement the possible returns that the money obtained could generate them, such as bank interest.

In any case, Gestha clarifies that the winners are not affected when applying for scholarships, assistance benefits or other public aid that depends on income and not the patrimony, since the amount of the prize not included in the general income tax base, nor in that of savings. However, it must be taken into account for the purposes of the Estate Tax.

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