The technicians of Treasury (Bertha) estimate that the treasury will enter 19.5 million euros for the prize draw of the Children’s Lottery, provided that all thetents of the first and second prize are sold, the same figure that was estimated for 2019, as indicated in a statement.
In the draw of the Child a total of 700 million euros will be distributed, according to the data provided by the State Lottery and Betting Society of the State (See), and on this occasion only the first two prizes are taxed, which amount to 200,000 and 75,000 euros, respectively. Thus, the winners of the third prize will receive a full 25,000 euros. (You can check here if yourtent has been awarded)
Likewise, Bertha has pointed out that the winners who share a prize greater than 40,000 euros will have to pay the Treasury the part corresponding to their participation, “although this is less than that figure”, since “the tax is required on the amount that exceeds 40,000 euros of thetent prize winner, being indifferent as long as it is participated “.
They have also recalled that the awards have no impact on personal income tax of the graceful. Nor does it affect to request scholarships, assistance benefits or other public aids that depend on income and not on assets, since “the amount of the award is not included in the income tax base, although it must be included in the Wealth Tax if it reaches the regional minimum to present it “.
For this reason, the Treasury technicians have once again asked the Government to restore the minimum exempt from the Lottery, Once and Red Cross prizes to the first 2,500 euros (limit in force between 2013 and July 4, 2018), since it does not They see no justification for not paying a profit of chance of 40,000 euros, but the minimum vital income or a subsidy of 1,000 euros does.
Bertha has also warned that foundations, associations and non-profit entities multiplied by eight the Lottery prizes, mainly from christmas giveaway and ‘El Niño’, reaching 427.7 million euros in 2019.
“Despite the fact that in 2019 the number of prizes subject to lottery tax decreased by almost half, by 42% due to the increase in the exempt minimum of eachtent winner from 10,000 euros to 20,000 euros, in 2019 entities and companies 374.8 million more entered, an increase of more than 700% “, according to the technicians.
Bertha has repeatedly warned that the collection of prizes by entities and companies was skyrocketing and has insisted that the management of the Tax Agency allow them to open a tax investigation program and money laundering to foundations, associations and others non-profit entities that accumulate 99.5% of the prizes obtained by legal entities, as well as people who win great prizes in different raffles.
This year, for the first time, may investigate “suspicious awards”, when the tax fraud prevention law that is being processed in Congress enters into force, which will allow theMeatT to “immediately know” the prizes paid with or without withholding, identify the winner, the dates of the draw or bet and the payment of the prize, among other information.
This year every Spanish will spend an average of 17.57 euros to buy tickets it will cost an average of 17.57 euros to buy tickets for the Children’s Lottery, which is 0.64 euros less than the previous year, according toSEL AEE’s per capita consignment figure, collected by Europa Press. If you don’t have yourtent yet, you are still on time, because you can buy tickets until the day of the draw.
Change the Corporation Tax law
The technicians have warned that, until October 2020, the legal entities had won 340 million in lottery prizes of more than 40,000 euros each, a figure that will increase after the El Niño draw and for which “no justification can be found.”
For this reason, they have urged to modify the Law of Corporation Tax so that the prizes that legal persons win pay the tax at least of lotteries to prevent companies and entities in losses or partially exempt from not paying taxes and obtaining a refund of the 20% withholding.
Bertha has recognized that the increase in the exempt minimum makes the bad practices of those who divert the collection of prizes to partially exempt foundations and entities or companies in losses attractive, but has insisted that to end fraud it is not necessary to increase exemptions and lower taxes, but combat avoidance through better research.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.