news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Earlier this year, a Jiangxi lottery player won 220 million yuan in a welfare lottery, but ultimately did not have to pay personal income tax, which attracted public attention. Relevant departments have begun to plug this policy loophole.

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 the Relevant Calibers of Lottery Prize Redemption and Applicable Tax Laws" (hereinafter referred to as the "Announcement"), the most critical of which is to clarify the definition of "one-time winning income". The preferential policy of exempting one-time winning income from personal income tax of no more than 10,000 yuan will continue.

Shi Zhengwen, director of the Fiscal and Tax Law Research Center of China University of Political Science and Law, told Caixin:This "Announcement" clarifies that computer lottery regards all prize money won by the same person in the same game in the same period as a one-time winning income, rather than the previous relevant rules that regarded the winning income of a single bet as a one-time income.This means that if there is a similar situation as the aforementioned where someone wins 220 million yuan in lottery tickets, there will no longer be tax exemption, but instead a 20% personal income tax will need to be paid. This is conducive to social fairness and also reflects that the policy does not encourage speculative behavior in lotteries.

The above-mentioned Jiangxi lottery player bought more than 50,000 lottery tickets with the same number in the "Pick Seven" game of the 2023322th issue of the Welfare Lottery Happy 8 game, and finally won 10,000 yuan per ticket. Due to the triggering of the compensation limit, the prize for each ticket was reduced to 4,475 yuan, with a total prize of more than 220 million yuan.

However, according to Article 33 of the "China Welfare Lottery "Happy 8" Game Rules" which stipulates that "winners of a single bet with a winning amount of RMB 10,000 (inclusive) or more must pay personal income tax in accordance with the law", winners do not need to pay personal income tax.