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Earlier this year, a lottery player in Jiangxi won 220 million yuan in a welfare lottery but did not have to pay personal income tax, which attracted widespread attention from the society. This seemingly unreasonable tax exemption actually stems from the vague definition of "one-time winning income" in previous relevant policies. However, this policy loophole has attracted the attention of relevant departments, and blocking actions have been launched.

On August 16, the Ministry of Finance, the State Administration of Taxation, the Ministry of Civil Affairs, and the General Administration of Sports jointly issued the "Announcement on Lottery Prize Redemption and Applicable Tax Law" (hereinafter referred to as the "Announcement"), the most critical content of which is a clear definition of "one-time winning income". This definition will have a far-reaching impact on the individual tax payment of lottery winnings in the future.

The Notice stipulates that computer lottery will take all the prizes won by the same person in the same game in the same period as a one-time winning income, instead of the one-time winning income of a single bet as in the previous relevant rules. This means that if there is a similar situation of buying a lottery ticket and winning 220 million yuan, the winner will no longer be tax-free, but will need to pay 20% personal income tax based on the total prize. This provision is undoubtedly conducive to social fairness and also reflects that the policy does not encourage speculation in lottery.

Looking back at the 220 million yuan jackpot event at the beginning of this year, lottery players in Jiangxi bought more than 50,000 tickets with the same number in the "Select Seven" game of the 2023322th issue of the Welfare Lottery Happy 8 game, and eventually won 10,000 yuan per ticket. Due to the triggering of the compensation limit, the prize money per ticket was reduced to 4,475 yuan, with a total prize money of more than 220 million yuan. However, according to Article 33 of the "China Welfare Lottery "Happy 8" Game Rules" that "winners with a single winning amount of more than 10,000 yuan (not included) must pay personal income tax in accordance with the law", the winner does not need to pay personal income tax. This provision is obviously different from the public's general understanding of "one-time winning income", and therefore has caused widespread controversy.