Taxes on gambling winnings: comparing the situation in the RF and Europe
All countries have different gambling business taxation systems, and not only tax rates differ but also their targeting. For example, in the UK, the Czech Republic, Belgium, Slovakia, Spain, and Denmark, only the gross income of betting companies is a subject to tax.
Whereas in Russia, players’ net winnings are taxed at the rate of 13%. Let’s examine the tax percentage rates for winnings in other European countries.
In Germany, a player pays 5% from every placed bet. If a bet turns out to be a winning one, 95% of its amount is multiplied by the coefficient before the payout. In case of a loss, the betting company pays 5%.
In France, taxation is also applied to every bet. In online betting, it comprises around 9% of the general amount, and in horseracing – 12%.
Such countries as Greece, Romania, and Poland take up a long-term approach. They practice taxation based on player’s bets placed during the annual period.
For example, players from Greece don’t pay taxes in case they win less than €100 in a year. However, if they win more than €500, the tax rate will comprise 20%.
Every taxation system has its own advantages, disadvantages, and peculiarities, which match the region. Currently, the gambling legislation is changing in some European countries, and with time, we will see how it influence the market.