Do you have to pay taxes on lottery winnings?
The question of whether you actually have to pay tax on lottery winnings is often asked. The answer to the question is very simple, because the legal regulations for the taxation of winnings in the lottery are clear. The laws in Germany state that lottery winnings, regardless of the amount, do not have to be taxed.
With regard to the taxation of lottery winnings, there are still uncertainties in many places. Lottery winnings would be tax-free when they were paid out, but taxes would have to be paid after the first year. But from a logical point of view, that can't be true.
Lottery winnings do not have to be taxed
The legislature has determined that winnings made by playing the lottery do not count as income within the meaning of the Income Tax Act and are therefore not taxed. However, the state does not waive its taxes. He collects this in advance when paying for the individual lottery tips.
- For example, in the "6 out of 49" lottery, only 50 percent of the winnings are paid out. The other 50 percent go to the state as gaming tax or, earmarked, to the households of the respective federal states.
- On the other hand, you have to pay tax on all income that arises from investing in lottery winnings. If you put a lottery win of 10,000 euros at the bank and receive it interest charges, these are paid with a 25 percent flat tax by the Tax office proven.
There is no wealth tax in Germany
The investment of a lottery winnings or parts thereof can, depending on the form, cause taxes.
Games of chance are a secure source of income for the German state. One …
- How does it look with a million profit. Then you have a great fortune. Wealth tax should then at least be due. If this tax were in effect, it would be used to tax the lottery winnings. For some years now, Germany has abandoned the levying of a wealth tax.
- Anyone who gives away or bequeaths their lottery winnings ensures that inheritance or gift tax is incurred under certain circumstances. The purchase of a house and land does not go away without paying taxes. In any case, a real estate transfer tax is levied.
So there are no taxes when you win the lottery. After that it looks different. Then winning the lottery can cause taxes.
