You are required to declare the money you earn in casinos and gambling halls on your income statement. But this year there is a novelty: you can make up for what you lost with what you have gained. This will allow you to pay a little less tax. The only requirement is that your winnings are always higher than your losses. How to justify to the Tax Agency what you have earned playing BlackJack? And what have you lost at roulette? We explain it to you in this article.
You are required to declare the money you earn playing.
You are obliged to reflect in your income statement all the money you earn in casinos, game rooms, arcade machines, and betting. Personal income tax (IRPF) is applied to this income, a tax that is levied on all the capital that you receive over the course of a year.
Internet betting is the exception.
Online betting is the exception. To be able to play on the Internet gaming portals, you have to buy money with your credit card. If you want to recover your investment, you must enter the capital in your bank. From this moment on, the Treasury already has proof of this income and will reflect it in your draft.
Novelty of the income: compensate your losses with your gains.
The income campaign is loaded with many new features. One of them is that you can make up the money you have lost in the casino, gaming rooms, arcade machines, and betting throughout the year with which you have won. The only requirement is that the gains are always greater than the losses.
How to justify to the Treasury the money you have lost in the casino?
It is difficult, if not impossible. You cannot demand that the rooms provide proof of the money that has been played and lost. This means that once again, “the Treasury will have to rely on the honesty of the taxpayers.”
Online betting is, again, the exception. You can justify all the money you earn and lose online with statements, receipts, supporting documents, etc. In this case, you can compensate your losses with your earnings, since you can credit it to the Treasury.
What withholding is applied to the money you earn playing?
The money that you win in the casino, gambling, or with the arcade machines does not pay by itself. This capital is computed as part of all your annual income, and it is on this final amount on which the personal income tax is applied. This tribute is progressive: the more you earn, the more you pay.