Gambling Tax

What is Gambling Tax

The gambling tax is a special tax that is levied on winnings you have won from gambling. According to Dutch law, games of chance are games where the winner is determined by luck or chance and where the players have no or only limited influence.

The prizes you win with games of chance such as slot machines, roulette, poker or online versions of these types of games are subject to the law on gambling tax. These are therefore taxed in a different way than your wages or the profits from your own company.

Gambling Tax in Real Casino Games

For real, land-based casino games (such as land-based casinos, real poker tournaments and real bingo), a prize of less than 450 euros is not subject to tax. So you can take home any amount up to 449 euros tax-free and you don’t have to indicate this anywhere. This applies to all winnings from Dutch but also foreign real casinos and real gambling games.

With a prize from 450 euros you are obliged to state the value of the prize and gambling tax will have to be paid on the entire prize. If you have won your prize at a Dutch game of chance or a casino located in the Netherlands, you do not need to do anything. The casino then deducts the tax to be paid from your prize, after which you receive a net prize or the casino takes the tax for its own account. We will tell more about that later.

If you have won your prize at a foreign game of chance or casino, you usually have to take action yourself and therefore declare the amount won to the Tax Authorities yourself. You then pay gambling tax on this.

Gambling Tax in Online Casino Games

If you have won a prize playing online casino games, different rules apply. In short, you have to keep track of how much you have won and how much you have wagered/lost by playing online every month.

For example, If you have won 100 euros on a site in January, but also lost 40 euros in the same month. Then you have a profit of 60 euros. You have to declare this 60 euros at the end of the month and you have to pay tax on this. If you play games at multiple casinos during a given month, you must add up all winnings and losses and declare the total result. In that case, the total profit is taxed.

Have you lost much more than gained? Then you have not made any profit and of course you do not have to declare or pay any tax. It is therefore purely a question of whether you have really made a profit over a certain month. You have to keep track of how much you have played at each online casino per month and whether this has resulted in a profit or a loss.

Main Rules On Gambling Tax

The tax to be paid depends on how big your prize is and whether you have won at a real or an online casino. There are some rules that always apply in below. It doesn’t matter where your prize comes from, these rules always apply.

The tax rate for the gambling tax is 30.1%. There are no other rates at this time, so if you have to pay tax, this is the rate you should apply to your prize or winnings. The old rate of 29% has not been used since 2018.

Small games of chance that you play in a closed group are exempt from tax. Have you organized a little bingo at work or a football pool with your in-laws? Then you do not have to declare the prices to the tax authorities.

Have you won a casino prize and has the tax authority of that country already levied tax on it? Then you can request an exemption from the Dutch tax authorities. This way you don’t have to pay tax twice.

To declare your prize or winnings in some countries, use the special gambling tax form published by the Tax Authorities on its website.

Example : Holland Casino Without Gambling Tax

The Staatsloterij is one of the most famous games of chance in the Netherlands. This is partly due to the New Year’s Eve draw. For many people, buying a New Year’s Eve ticket is just as much a must as donuts, champagne and a good fireworks show.

It is indeed true that you do not have to pay any gambling tax on the amounts you win at the State Lottery. The amounts you win are really net. However, this does not mean that no tax has to be paid on the price at all. This does happen, but by the State Lottery itself.

Holland Casino, the only real casino in the Netherlands and also a state-owned company, also takes the gambling tax due on casino winnings and prizes for its own account. The player therefore pays nothing and takes home the entire amount won. The best choice to gamble only at bandarqq and see for yourself.

Postcode Lottery Tax From The Prize

The Postcode Lottery takes a different approach. The Postcode Lottery is not a state-owned company. The general rules apply to the Postcode Lottery: small prizes under 449 euros are not taxed, but as soon as the amount is greater than that, the entire prize is taxed with 30.1% gambling tax. 

You win a prize of  5,000 Euro in the Postcode Lottery. You pay gambling tax on this yourself, namely 5,000 Euro x 30.1% = 1505 Euro. This gambling tax is deducted from your prize by the Postcode Lottery. You will then receive a net price of  3,495  Euro on your account.

So the price no longer counts for income tax?

No further direct box 1 income tax is levied on winnings that are already taxed with gambling tax. Even if you structurally earn money with Roulette, you do not have to include your winnings in your income tax return.

Do you win a larger amount of money and do you put part of this in your savings account for later? Keep in mind that this saved amount can later be taxed as assets for income tax in box 3. 

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