Do I have to pay tax when winning a car?

How much should you pay if you win a car?

Any winnings are income . Winning a car is no exception. Once income arose, then an object of taxation appeared. Therefore, the tax on winnings is a regular tax on personal income, regulated by Chapter 23 of the Tax Code of the Russian Federation.

What tax a person needs to pay if he wins a car in the lottery depends on how many days a year he, as an individual, is in Russia:

• a citizen staying in the country for more than 183 days a year pays a tax of 13%, art. 224, paragraph 1;
• less than 183 days – 30%, art. 224, paragraph 3.

If the prize draw was for advertising purposes, then such winnings are taxed at a rate of 35% in excess of the amounts established by law, Art. 224, paragraph 2.

Tax calculation

Winnings are not always expressed in money; sometimes they can have a material equivalent in the form of a vehicle.
But there are also some nuances: paying tax on cash winnings is simple - transfer part of the amount to the state treasury, but when you receive a car, this money must be found somewhere. All participants in the drawing must be notified in advance that if they win, they are required to pay a fee for this. Let's look at the tax on winning a new car. The amount of tax depends on the type of campaign being conducted:

1. 13% is a regular non-advertising campaign.
2. 35% – advertising game of the lottery organizers.

Let's consider an example: following the results of a lottery, a car worth one million rubles was won. If this was an advertising campaign to attract customers, then for such a machine you will need to pay 350,000 rubles, and if it was just a regular lottery, then only 130,000 rubles.

In the absence of the full amount of tax, the law allows you to sell the prize and pay a duty on the profit from the transaction. In some situations, the value of a vehicle is declared to be inflated, in which case you can contact an independent expert. This specialist will indicate the market value of the car and calculate the tax. You will also need to contact an appraiser to fill out a tax return, since it indicates income in monetary terms.

Information about the recipient of the winnings is provided to the tax office by the lottery organizer, so it will not be possible to hide from payment. They receive personal data when transferring the prize, issuing it only with a passport and SNILS.

Calculation formula with examples

Tax calculation is carried out independently with simultaneous filling out of the declaration and timely payment of the calculated amount. The organizers are required to notify the recipient about the value of the winnings and the need to calculate and pay taxes on their own.

Standard calculation formula:

Tax amount = tax rate * tax base.

For example, your winnings are a UAZ Patriot worth 688,410 rubles. This is the price the organizer notified you about. We calculate the amount of personal income tax according to the formula, multiplying the price of the car by the tax rate.

Examples of personal income tax calculation for two forms of lotteries for residents of the Russian Federation, the third option for non-residents:

• when winning a regular lottery, tax calculation: 688410*13%=89493 rubles;
• when received as a prize in a promotional drawing: 688410*35%=240944 rubles;
• the prize was received by a person staying in Russia for less than 183 days a year: 688410*30%=206523 rubles.

In most cases, such amounts may seem huge to the recipient of the winnings, and then the question immediately arises about selling the prize.

Tax on lottery winnings

There are different types of lotteries, both private and public. Winnings in them can also be varied. Despite the fact that most of them have a financial form, there are also options with real estate and vehicles (motorcycles, cars, etc.).

The standard rate on lottery income is 13%, but there are a number of exceptions, within which the rate will be 35%:

• incentive lotteries held with the aim of drawing customer attention to a certain product or service;
• sweepstakes conducted by manufacturers to increase brand popularity.

The difference in interest rates is due to a number of factors. Firstly, advertising lotteries are usually free, that is, a person does not bear any risks. Secondly, the concept of a lottery ticket itself is based on a low chance of success.

The main options for incentive lotteries are:

1. Lottery receipts in stores. For example, for the fact that a person has made a purchase over a certain amount, he is given the right to take part in the drawing. This pushes people both to simply complete the transaction and to increase their one-time purchase.
2. Winning phone number. Mobile phone providers may use a random contact method.
3. Random selection in the form of voting. Such options today are most often carried out on social networks. To do this, you need to take some action, for example, repost a post or write a comment on it. Next, a special program will select a number of winners from all participants. Of course, such giveaways rarely include expensive items, but this is also possible.

The bottom line, one way or another, comes down to the fact that in case of defeat the participant does not lose anything.
But regular raffle tickets cost money. Although in most cases they are small, but real, which he pays without guarantees and without receiving anything in return. If the recipient of the prize is not a resident of the Russian Federation, then what will be the tax on the car he wins? It will be 30% of the amount.

Taxation in case of sale of a won car

And here a tax on income from the sale of property owned for less than three years arises. Such income is taxed in full minus the property deduction provided for by law. The rate for a resident is also 13%, for a non-resident – ​​30%.

The sale is subject to mandatory declaration with the calculation and payment of tax . The deadlines for filing and paying taxes are the same as when receiving winnings.

If the winning and sale took place in the same year, then when filling out, two types of sources of income are indicated. If the years of receipt and sale of the prize are different, then the declaration is submitted for those tax periods in which the income was received.

When calculating the tax on the sale of a car, a tax deduction is applied for the so-called other property; it amounts to a maximum of 250,000 rubles, Art. 220 Tax Code of the Russian Federation.

The tax calculation for the sale of our example UAZ car will be as follows:

(688,410 rubles – 250,000 rubles) * 13% = 56,993 rubles.

Thus, if you decide to immediately sell the prize, then the taxes will be:

• 89493+56993=146486 rubles at a tax rate of 13%;
• 240944+56993=297937 when receiving an advertising prize;
• 206523+131523=338046 for non-residents at a rate of 30%.

When receiving a prize from a promotion and its subsequent sale, the tax will reach almost half the value of the property, as for a non-resident.

Disposal of won property

Taking ownership of something by winning a drawing gives the winner all rights in relation to it:

• possession - to be an owner;
• use - to use for oneself;
• dispositions - to decide the fate of property: sell, donate, exchange, inherit, and so on.

In this regard, people often wonder whether they need to pay tax when they win a car if they want to use it for something other than themselves. Regardless of how a person plans to use the received vehicle, he is obliged to pay a state fee in the established amount.

If any order is performed with the received vehicle, you will need to pay another tax. For example, when making a gift, the recipient of the property or his legal representative will pay the gift fee if he has not yet reached the age of majority. A similar process will occur during inheritance. But in a purchase and sale transaction, the seller will be forced to deposit the amount into the state account.

Conducting a purchase and sale transaction of a won car for the purpose of paying tax on the profit received is not prohibited by law and is a common situation.

Declaration

According to Art. 228 of the Tax Code of the Russian Federation, in the event of a property gain, its recipient is obliged to submit a 3-NDFL declaration to the tax office at the place of registration. The report must be submitted by April 30 of the year following the year in which the prize was received , art. 229 Tax Code of the Russian Federation. If the deadline for filing a declaration is violated, penalties are applied in the amount of 5% for each month of delay of the tax amount, but not more than 30% of the calculated amount and not less than 1000 rubles, Art. 119 of the Tax Code of the Russian Federation.

For filling:

1. The declaration is downloaded from publicly available resources on the Internet and filled out either manually or computer-aided.
2. They receive paper sheets from the tax office, the inspector on duty will select exactly those sheets that are filled out in this case, filled out manually in block letters.
3. Fill out in the program “3 Personal Income Tax Declaration”. It is located on the tax website in the “Software” section.
4. Fill out the report in the “Taxpayer’s Personal Account” on the Federal Tax Service website; there are hints everywhere on this resource, which is very convenient for filling it out correctly.

In the first three cases, the declaration is printed and submitted either personally by the taxpayer to the tax office, or by mail, in a valuable letter with a list of the contents.

In the latter case - electronic submission of reports, using a key, without a personal visit.

The declaration contains information about the declarant and information about all income received from various sources of payments, separately by type of income and tax rates.

Liability for non-payment

In case of failure to pay the fee on winnings, certain penalties are provided for the defaulter. Sometimes authorized bodies send a writ of execution to the place of work of the tax debtor. Such a document allows you to deduct the amount of overdue payment from your salary every month. If a citizen is ready to bear responsibility for non-payment, then he will have to pay:

• A fine of 20% of the amount of the unpaid fee is the most commonly used sanction;
• A fine of 40% of the tax payment amount - in case of deliberate tax evasion;
• Penalty for daily late payment;
• A fine of 5% of the amount accrued monthly is for failure to file a tax return.

The fine will be more than 100 rubles and not higher than 30% of the tax base. Even if such sanctions do not have an effect, and the owner of the won car does not intend to pay, representatives of the tax inspectorate have the right to forcefully collect the unpaid funds. It is possible to incur criminal liability for non-payment only in case of debt of significant amounts: if the amount of the debt exceeds 300,000 rubles, the debtor can be arrested for a period of 1 year.

Payment Methods

The tax has been calculated, the declaration has been submitted, payment is due . It is made before July 15 of the year following the year in which the income was received, Art. 227, clause 6. The payment details must be filled in absolutely accurately - this will prevent the amount paid from being included in unclear payments and the accrual of penalties. It is better to take all the details or a receipt to the Federal Tax Service at your place of residence.

On the website of the tax authority in your region there is a service “Payment of taxes for individuals”, which will help you draw up a correct receipt or payment order for personal income tax payment.

Payments can be made as follows:

1. Apply with a receipt to any bank branch that accepts payments from the public. Operators will help you make a payment through an ATM or carry out the operation themselves.
2. Electronically – by bank card transfer.

You may be interested in reading our materials on the following topics:

• Transport taxes - benefits, calculation procedure, amount depending on capacity and region, features of receiving notifications and methods of payment.
• Calculation and payment of tax on old cars, trucks, motorcycles and electric vehicles.

Materiel

There is Art. 152 of the Tax Code of Belarus. According to this article, payers of personal income tax are individuals, who are understood to be citizens of the Republic of Belarus, citizens or subjects of a foreign state, stateless persons.

We suggest you read: Restrictions on a car by car number

By law, you must pay income tax on all income you receive, both in cash and in kind. But there are certain exceptions (they are described in paragraph 2 of Article 153 and paragraph 1 of Article 163 of the Tax Code).

The code also states that income from advertising games refers to income that is not remuneration for the performance of labor or other duties received from organizations and individual entrepreneurs that are not the main place of work.

Won money in SuperLoto, but didn’t pay anything?

- in the form of winnings received for all types of lotteries from organizations carrying out lottery activities in the manner prescribed by law (for example, the Belarusian Republican Lottery “Your Lotto”, the Belarusian Republican National Sports Lottery “SuperLoto”);

- in the form of winnings from electronic interactive games received from organizations engaged in organizing and conducting such games in the manner prescribed by law (for example, electronic interactive games “Sportloto 5 out of 36”, “KENO”, “Sportprognoz”).

For reference: a complete list of lotteries and electronic interactive games included in the State Register of Lotteries and the State Register of Electronic Interactive Games can be found here.

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When presenting the prize, I was told that they would report my winnings to the tax office, and I needed to wait for a notification that would indicate the required amount and payment deadlines.

I am aware that penalties are charged on overdue debts, which I naturally don’t want, since the amount is considerable.

You need to receive a certificate from the organizers of the drawing in form 2NDFL, it will indicate the amount of income you received (at least, according to their data, if you have no other data on the cost of the car, then why not use the organizer’s data?) .