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Lottery prizes of less than 10,000 euros will not pay taxes

An amendment agreed by citizens and PP will raise the minimum below which taxes are not paid at 40,000 euros in 2020

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Lottery prizes of less than 10,000 euros will not pay taxes

The PP and citizens have agreed this amendment, which would progressively raise minimum tax exempt for lottery prizes up to 40,000 euros in 2020. This levy has up to now a soil of 2,500 euros below which we do not have to pay taxes when y receive prizes from lotteries of state, autonomous Communities, National organization of Spanish Blind (ONCE), Spanish Red Cross and similar entities European.

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The agreement, which also includes UPN and PNV, will allow Committee on Budgets of Congress of Deputies to incorporate a partial amendment in accounts to raise tax exempt amount of prizes and lotteries up to 10,000 euros this year, 20,000 In 2019 and 40,000 in 2020. In this way, prizes under 10,000 euros will be exempt from approval of budgets. Gains exceeding that limit are taxed 20% for amount exceeding that level.

The measure will have no big impact on public accounts. This tax contributes around 500 million a year, although executive had anticipated that it would harvest more than 825 million when approved.

The new tax leaves a floor exempt from 10,000 euros this year. Below that amount will remain untaxed. That is, if you touch Fat Christmas, awarded so far with 400,000 euros per tenth, is taxed for 390,000 euros — part that exceeds 10,000 euros. And you apply a 20% rate on that amount. The effect is that prize is left at 322,000 euros, after paying tax 78,000 euros. In 2020, when exemption is 40,000 euros, money that will be charged (if amount of prize is maintained) is 328,000 euros after paying 72,000 euros in taxes.

It is envisaged that also succeeds an amendment of PP to apply reduced rate of VAT to services of dependence that are borne at least in 33% with public aid, a limit that currently is in 75%, as advances Efe.

The amendment explains that high percentage of public funding currently required is in practice exclusion of reduced rate of virtually all seats that are not offered in concert with administration.

The deputy of PDeCAT Ferrán Bel has offered to PP to transactivate this initiative with one of its party, more broad, so that all services to dependence tributen to reduced rate of VAT of 4%.

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