South african tax on gambling winnings

20.12.2019| Alanna Andry| 0 comments

south african tax on gambling winnings

In government announced a national gambling tax proposal, that with effect from 1 Aprilall gambling winnings above R25, including those from the National Lottery, would be subject to a final winnings per cent withholding tax. It was also african that similar gambling taxes exist south India, tax Netherlands and the United States. According to the Minister the proposed gambling tax would assist in discouraging excessive gambling in South Africa. In the Budget Speech, it was announced that a national tax based on gross gambling revenue of casinos would be introduced at a rate of 1 per cent in addition to the provincial rates. Accordingly, any proceeds derived by a taxpayer from gambling will be subject to an additional 1 per cent levy on top of an existing provincial gambling tax base of 1 per cent.
  • Gambling in South Africa - Wikipedia
  • Lottery Taxes in South Africa
  • Tax and your winnings – The Citizen
  • Proposed Gambling Tax - The SA Institute of Tax Professionals
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    south african tax on gambling winnings

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    Gambling in South Africa - Wikipedia

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    Almost 95% of gambling and casino winnings fall into this category. In the event that the gambling activity is carried out as a scheme, or done solely with the aim of registering some regular profit, you will no longer be able to consider it as capital and will be bound to pay tax on it to the South African government. This type of tax is. Apr 05,  · Smit says National Lottery winnings are generally regarded as capital in nature and not included in the taxable income of the individual. It is also excluded from capital gains tax (CGT). However. Tax for online gambling falls into the same category as legal gaming, licensing and gambling regulation, and should be treated with the same importance as any aspect of responsible gaming. So if you've ever thought about tax for gambling online, well done. You are just the type of player every top South African online casino is after.

    Andri van Tonder says Any amount of money won in a lottery is considered capital in nature and winnongs exempt from Income Tax. Lottery prizes also benefit from a special exemption from Capital Gains Tax, meaning no tax is payable on lottery winnings of any size. There is one rare exception to this.

    If you play the lottery or undertake any form of gambling professionally - and regularly win prizes to the extent that your winnings are your primary source of income - this money will be taxed just like other forms of income.

    Lottery Taxes in South Africa

    Even if you do not play the lottery professionally, it is nonetheless recommended that you notify the South African Winnings Service SARS of any prize won wibnings order gambling avoid the chance of being unnecessarily taxed on your winnings in future. If you were to distribute south lottery winnings to friends or family, that amount may be subject to something called Donations African. For example, if you won R9, and gave R3, to tax friend, that donation would be exempt from Donations Tax.

    If you run a lottery syndicate in South Africa, this tax could affect the distribution of winnings to other syndicate members.

    Tax and your winnings – The Citizen

    Smit says there is no requirement that an employer-employee relationship must exist. The prize money merely had to be received for services rendered.


    He says a classic example would be a prize received for employee of the month. The prize could be cash or otherwise, but will be subject to tax. However, if someone outside the company awarded the prize and did not receive the benefit of the services, the situation could be different. Smit says in such a case it could be argued that the money was not received in relation to services rendered directly therefore no causal link between the services and the fax and should therefore not be subject to tax.

    Proposed Gambling Tax - The SA Institute of Tax Professionals

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