Explanation of gambling tax in 2022
With online gambling, the tax authorities expect you to look at how much you have deposited and how much you have won every month. If you have won more money than deposited, you must declare that amount.
With online gambling, the tax authorities expect you to look at how much you have deposited and how much you have won every month. If you have won more money than deposited, you must declare that amount.
For example, suppose you deposit $400 in a online casino games and your profit is at $600 at the end of the month, so you have to pay gambling tax on $200. You have to do this in the next month. When you play at multiple internet casinos, the calculation is the same. The gaming tax is calculated on all winnings minus all deposits. The exemption from the first $449 winnings does not apply to winnings with games from online casinos and similar companies. This exemption applies only to domestic games of chance. Due to the fact that gambling sites are located abroad, different rules apply here than with New Zealand games of chance such as the state lottery or Toto.
All your profits can be your online gambling tax form report to the tax authorities. Online gambling falls into the category of ‘Foreign’ because all gambling sites are located abroad. You must then pay 29% of your total gambling winnings in a given month. Below we have some background information regarding gambling tax in the online casino, the online poker Hall and the State Lottery. If our explanation is lacking, please see the explanation of the tax authorities here.
Those who gamble regularly in an online casino know that they occasionally win, but usually lose. Play at an online casino is real gambling: one cannot fundamentally influence the outcome. That this is a different story with poker, we explain further below. It is annoying that if you win an amount of money once, you also have to pay gambling tax on it. This is unfortunately the legal consequence of New Zealandship.
TIP. However, as long as an amount is still in the account of an online casino, you do not have to pay gambling tax that same month. So you can also choose to wait until the moment you win a prize that is worth paying out. You only pay tax on this larger amount.
Poker is not a game of chance. It is possible to be good at this game and thereby positively influence the outcomes of a game of poker. An extensive knowledge of statistics, psychology and sound discipline lead structurally to profits for many poker players. Both theory and practice clearly demonstrate this. Nevertheless, the state considers poker a game of chance. Because of this point of view, even after a profitable month of online poker, you simply have to pay gambling tax.
TIP. The same strategy can also be applied to online casinos. Leave your winnings in your online poker account. Only when you have won a significant amount, you let it pay out. You will then pay gambling tax on this amount. This way you statistically have a financial advantage and you act in accordance with the law.
Since the State Lottery the government, they already take the trouble to pay the gambling tax for you. So you never have to declare a high price on your state lock yourself. They automatically deduct the gambling tax from your won prize and then pay it out. Since it is a domestic game of chance, prizes under $449 are game of Chance tax-free. You probably won't win more than that amount, but who knows, you might win a big jackpot. A 29% gambling tax is automatically withheld on such a multi-million dollar prize.
The State Lottery is a monthly lottery with big jackpots. Especially the new year's draw and The King's Day draw are very popular. The jackpots in these draws are also much higher, given the large animo. The more tickets sold, the higher the jackpot.
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The Postcode Lottery and other lotteries of this company (Friends Lottery, Bankgiroloterij) are not owned by The New Zealand government. Like that with the State Lottery well, it is. Still, the exemption on the first $449 on prizes you win in this lottery also applies here. On prizes above, 29% gambling tax is automatically withheld. So you never have to file a tax return yourself about Postcode Lottery prices.
The state-owned sports betting company is Toto. Big prizes can also be won here. If this is the case, you will also have to pay gambling tax. An exemption applies to the first $449 profit. Toto automatically deducts the gambling tax of 29% on the amount above that. It then flows back into the state treasury. The same applies to the State Lottery. In terms of tax burden, bets at Toto are therefore more advantageous.
