Personal income tax
from lotteries and gambling winnings
A natural person must pay personal income tax from all lotteries and gambling winnings, which in total exceed the amount of 3000 EUR. The tax is to be paid from the excess amount regardless of the amount of expenditure (membership fees, the amount lost).
Tax rates:
- 25.5% tax rate applies to winnings of over 3000 EUR (during a taxation year).
- 33% tax rate applies to winnings of over 105 300 EUR (during a taxation year).
Tax withholding:
- From winnings exceeding 3000 EUR, the gambling organiser withholds the tax instead of paying it out and pays it to the Treasury (Valsts Kase).
EXAMPLE:
Winning amount of a customer: 10 000 EUR
Non-taxable amount: 3000 EUR
The taxable amount subject to the tax rate of 25.5% : 7000 EUR
Tax paid by the budget of the gambling organiser: 7000 * 0.255 = 1785 EUR
Customer winnings after taxes: 8215 EUR
Natural persons pay tax of all lotteries and gambling winnings, the total of which exceeds 3000 EUR during a taxation year. The winning recipient is obliged to pay tax on the excess amount, if it is not withheld by the paying agent or gambling organiser.