Play And Pay: Taxes For Poker Players
Let's find out which One is best to use
Poker in Russia is recognized As a gambling game and Is prohibited both online and Offline with the exception of Special gambling zonesNevertheless, poker players continue to Win on foreign venues or Live tournaments-illegal in our Country or legal abroad. Paradoxically, you also have to Pay taxes on poker winnings, Even illegal ones. There is no responsibility for Playing poker in Russia – Only for organizing an offline Game or creating a website For playing poker.
No other deductions can be Applied to this type of payment
The tax payment procedure may Not be obvious, and the Poker community offers various options. Creating an individual entrepreneur, filling Out a Declaration, paying a Lottery tax of, and qualifying Your activity as self-employed – all of these options Were tested by poker players.
The most appropriate and uncomplicated Way in the current realities Will be to fill out A -personal income tax Declaration And pay of the individual Income tax.
Win in a live tournament, You need to specify in Annex, and the output from Foreign poker sites in Annex. If you have received your Winnings as a result of Illegal offline tournament, an indication Of the organizers will lead To large problems with the Law for them.
You can only enter a Four-digit code: winnings from A betting shop or sweepstakes, Or – other income poker Taxes are difficult to assign To any other category.
The Declaration must be submitted No later than April of The following year, and the Tax must be paid no Later than July.
For example, if you win A tournament in February, the Return must be submitted by April, and the tax must Be paid by July. How much is the tax paid? With the entire amount, without Deducting bids, minus thousand rubles. If the prize was paid In a foreign currency, the Taxable income will be the Amount converted to rubles at The exchange rate of the Central Bank on the day Of receipt of the payment.
If the money was converted By the payment system without Your participation, you don't Need to make any additional payments.
There is a scheme that Allows you to pay tax Instead of. This is the registration of An individual entrepreneur under the Simplified tax system with an Indication of the type of Activity poker players indicate IT, Financial consulting, or private training.
However, this is not a Good idea.
There is no way that Playing poker can qualify by Law as a business activity. In addition, the tax service, In principle, is more actively Interested in the activities of Individual entrepreneurs, and may notice Something amiss.
Players use this scheme, counting On the fact that the Tax service sometimes does not Have real mechanisms for tracking The source of income.
For example, when holding a Legal foreign tournament, the names Of the winners are usually Published in the media – Then it will be impossible To hide the source, and Paying taxes through the sole Proprietor will be obviously illegal. But if the tournament is Unofficial, there is no place To get this information. The scheme with an individual Entrepreneur is not very profitable From the point of view Of profit. The whole point is in Mandatory contributions, the entrepreneur is Obliged to pay them even If he did not receive Income at all.
So, in, an individual entrepreneur With an income of up To thousand rubles is required To pay more than thousand Rubles for pension insurance and More than thousand for medical insurance.
If for some reason you Stop playing, you will still Have to pay these fees, If your winnings are large And the Federal tax service Is interested in their source – the help of an Experienced lawyer will not hurt. Even if you think you'Re paying the right taxes For poker.
If the amount is large, The poker player faces criminal Liability from a fine of Thousand rubles to imprisonment for A year.
A large amount is considered To be. million rubles for any period Or even thousand rubles for Three years, provided that this Amount exceeds of all your Taxes paid during this period. In reality, there are too Many gamblers, and tracking them Is still a problem for The tax service. It is possible that the Introduction of the VAT- tax Code will solve this problem, And then all transactions in Russian banks or payment systems Will be reported, and everyone Will have to pay taxes For poker without exception. Now the threat is mainly Players who win major official Poker tournaments. Their organizers post the winners Data on public viewing.
There was a case when A poker player was put On the Federal wanted list After a major tournament precisely Because of non-payment of tax.
All financial decisions of the Poker player remain on his conscience. Laws aren't perfect, and They often force people to Make difficult decisions. Weenax recommends choosing only secure Solutions:.