Next April 11 will be the day the 2022 Income Statement campaign begins, which this time comes with tax news for taxpayers. From that date the draft will be available on the website of the Tax Agency. A document before which many doubts can arise. One of them is from what number the profits achieved in sports betting must be declared and what amount will remain in the treasury.
The first thing we must take into account is that online games of chance and sports betting are regulated by the Law for the tax regulation of these bets, since 2011. This includes both betting and online casino and poker. And the same detail that not all earnings must declare.
But in the case of exceeding the stipulated amounts, the Treasury can punish those who do not do so with heavy fines ranging from 50% to 150% of the profits, depending on whether they are considered minor or serious infractions. Although it is true that the benefits do not appear in our tax data of the Income draft, since the Treasury does not oblige the operators to report the income of each player, you can request the information and access it.
How are betting profits calculated?
To find out how much money a person has won in bets, you must use the following formula: money in the balance as of December 31 – money in the balance as of January 1 – income + withdrawals. That is, you only have to declare for net benefits. To know the exact amount, online bookmakers allow you to download a detailed report of all transactions made during the calendar year, from January 1 to December 31.
There is an important nuance here, since if the money is in the bookmaker’s balance on December 31, it is considered profit even if it has not been withdrawn to the bank account.
What betting benefits should be declared?
It is mandatory to declare net winnings of more than 1,600 euros in online gambling.
In the case of being a student or not obtaining an annual income of 5,500 euros, it will not be necessary to declare the earnings until that figure is exceeded in betting benefits.
Whenever these amounts are exceeded, they must be declared as personal income tax. Box 282 should include gains and box 287, losses. The final result will be credited in box 290.
What percentage does the Treasury take from the bets?
The benefits in betting, casino and online poker will be added to the income obtained at work. From this sum arose the tax percentage to be paid.
19% of the profits for those with incomes up to €12,45024% of the profits for those with incomes from €12,450 to €20,20030% from 35,200 to €60,00045% of the profits for those with incomes over €60,000.47% of the profits to those who will have an income of more than €300,000.
It must be taken into account that it is a progressive tax by sections. In other words, the person who, between work income and betting, won 40,000 euros, will not have to pay 37%, but that percentage will only apply to the last 4,800 euros. On the other hand, you cannot compensate the years that you will have losses with those that you will have benefits, that is, you cannot deduct anything at home from losing money with bets.
