The Treasury will be able to enter 175.6 million euros in the next Christmas Lottery draw if the first three prizes are distributed, according to the calculations of the Technicians of the Ministry of Finance (Gestha).
Looking ahead to the Christmas Draw, the technicians explain that by taxing the prizes at 20% of the Lottery starting at 40,000 euros, the lucky ones who win the ‘Gordo’ prize, which distributes 400,000 euros to the tenth, will receive 328,000 euros, while the treasury will keep the remaining 72,000 euros.
Those awarded the second prize – 125,000 euros per tenth – They will deliver 17,000 euros to the Treasury, and the winners of the third prize -50,000 euros per tenth- will have 2,000 euros deducted.
In this framework, Gestha has requested through a “caution” statement when hiring ‘Lottery tax refund’ insurance and has recalled that the collection of compensation equivalent to the withheld tax must be included in the personal income tax return as an increase in assets in general income, along with the rest of the returns subject to the scale general, corresponding to the year in which you receive it.
Reduction of awards from societies, foundations and associations
Technicians have pointed out that, for the first time since 2016, there has been a drastic reduction in the prizes obtained by societies, foundations and associations, mainly with prizes from the Christmas Lottery, a year after the rise in 153.7 million in 2022.
For years now, Gestha had been asking to modify the law to avoid potential fraud, until the 2021 anti-fraud law introduced a provision in the Gaming Law to authorize the Tax Agency to sign agreements with the State Lottery and Betting Society of the State and the National Organization of the Spanish Blind, to through which as of 2023 and 2024, respectively, they are reporting monthly to the AEAT of the prizes paid, with or without withholding, of the recipient and their legal representative, date of the draw, date and method of payment of the prize and withholding if it occurred.
However, the Treasury technicians have insisted that they be authorized to begin tax and money laundering investigations of the 244.8 million paid to legal entities for prizes of more than 40,000 euros between 2020 and 2023, not prescribed.
Besides, The Treasury technicians have reiterated their request so that the Government replaces the minimum exempt from prizes from State Lotteries or communities, ONCE and the Red Cross to the first 2,500 euros, since they consider that this would discourage gambling, and they see no tax or economic justification for not paying taxes. a chance win of 40,000 euros, and on the other hand, an unemployment benefit or a subsidy of 1,000 euros is taxed.
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