The Treasury ‘will get’ 180 million euros in the Christmas Lottery

Treasury will be able to enter 180.2 million euros through the Christmas Lottery draw next Monday if the first three prizes are distributed, according to the calculations of the ministry’s technicians (Gestha), who link the increase in withholdings by 4.55 million compared to last year to increase of five sets.

In this way, the number of prizes increases by 765,200, up to 30,301,920, and their amount increases by 70 million euros, up to 2,772 million. In this context, the ‘bonus’ for the public coffers rises despite the fact that the minimum tax-free minimum has been maintained since it was increased in 2020 to 40,000 euros.

Looking ahead to the Christmas Draw, the technicians explain that at tax 20% prizes starting at 40,000 euros, the lucky ones who achieve the fat man, that distributes 400,000 euros to the tenth, they will receive 328,000 euros, while the treasury will keep the remaining 72,000. Those blessed with second prize -of 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 be deducted 2,000 euros.

In this framework, Gestha calls for caution when taking out ‘refund insurance’. lottery taxes’ and remember that the collection of compensation equivalent to the retained lien 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 general scale, corresponding to the year in which it is received.

Regarding the amount that corresponds to the Treasury, automatically discounted at the same time the prize is collected, so that the winner directly receives the amount already reduced by the tax. Whether the prize is individual or shareda 20% withholding is applied and, from there, participants they receive the net part that corresponds to them according to their contribution. To collect it, one or more people can go to the bank, but all the co-owners must be identified before State Lotteries and Betting and declare what percentage they had. He bank The prize will be deposited into the account of the owner who carries out the procedure and then he or she will will distribute among the others.

Increase in awards obtained by foundations and associations

Technicians warn that in 2024 there was a strong upturn of the large prizes obtained by societies, foundations and associations, which have multiplied by more than 43, which contrasts with the drastic falls registered in 2021 and 2023. Also have multiplied for more than 14 prizes higher amounts obtained by non-residents, who will not have to declare them when supporting the withholding.

For years, Gestha had been asking modify the law to avoid potential fraud, until the 2021 anti-fraud law introduced a provision in the Gaming Law to authorize the State Tax Administration Agency (AEAT) to sign agreements with the State Lottery and Betting Society of the State and the National Organization of the Spanish Blind (ONCE), which as of 2023 and 2024, respectively, are reporting monthly to the AEAT of the prizes paid, with or without withholding, of the recipient and his legal representative, date of the drawing, date and method of payment of the prize and withholding if it occurred.

Tax investigations for money laundering

However, the Treasury technicians insist that they be authorized to begin tax and money laundering investigations of the 243.7 million paid to legal entities for prizes of more than 40,000 euros between 2021 and 2024, not prescribed, as well as carrying out an analysis of the 246.7 million grand prizes in 2024 paid to non-residents.

While there is no date for the negotiation of the tax reform, the Treasury technicians reiterate their request for the Government to replenish the exempt minimum of the awards State or CC.AA., ONCE and Red Cross lotteries to the first 2,500 euros, since they consider that this is how would discourage gamblingand they see “no tax or economic justification” for not taxing a chance gain of 40,000 euros, and instead taxing an unemployment benefit or a subsidy of 1,000 euros.

And they add that large prizes have no impact on the winners’ personal income tax, so they do not affect them ask for scholarshipsassistance benefits or other public aid that depends on income and not assets, since the amount of the prize is not included in the personal income tax base, although it would have to be included in the Wealth Tax if the total of your net assets reaches minimum to present it.

Finally, Gestha emphasizes that to reduce tax fraud it is not necessary to increase exemptions, but rather to combat evasion by giving greater powers and responsibilities of the technicians of the Ministry of Finance to improve tax collection and control and public spending.