There are four teams that are competing to win the Euro Cup in Germany 2024: Spain, France, England y NetherlandsOnly one of them will lift the champions’ cup. However, there is another ‘selection’ that will benefit from the competition. And that is none other than the Treasury.

Throughout the competition, and even more so now that the final is approaching, fans place their bets on who will be the winner, or the specific result of the final. And there are quite a few of them. During 2023, 1.2 million people made some kind of sports betThis is 12.3% more than a year earlier, according to the Ministry of Consumption.

Do you have to declare winnings from sports betting? Yes. The reason is quite simple: they are considered returns on movable capital and are taxed under the Personal Income Tax. Failure to do so leads to fines and even interest on late payments. The Treasury can even block bank accounts.

What is the fine for not declaring sports bets?

As the popular song says, it depends. Because the penalties are different depending on two circumstances: one, the amount of money that has not been declared; and, two, the time that has passed since the moment in which it had to be declared. Specifically, we can talk about three types of penalties, as explained by TaxDown:

Fines for omission:If you do not declare your profits, the Treasury can fine you up to 50% of the undeclared amount.

Late fees:If you file your return late, you may face a penalty ranging from 5% to 20% of the amount owed, depending on how long it took you to file your return.

Late payment interestIn addition to fines and surcharges, you will also have to pay late payment interest on the amount you should have paid.

But it doesn’t end there. In fact, the Treasury can go a step further and investigate your finances in depth. Translated into plain English, this means more problems and possible sanctions. And, in extreme cases, as TaxDown reminds us, “may take more drastic measures such as blocking your bank accounts until you regularize your tax situation.”

How much money does the Treasury keep?

As with other draws, such as the National Lottery, the Primitiva, or the Bonoloto, for example, the Treasury keeps a portion of the prizes above certain amounts.

So, if the prize is less than 6,000 euros, the tax office will deduct 19%; if it is between 6,001 and 50,000 euros, 21%; between 50,001 and up to 200,000 euros, 23%; from 200,001 to 300,000 euros, 27%; and, from 300,001 euros, 28%.

So, as an example, if you earn 15,000 euros, you will pay 19% on the first 6,000 euros, and 21% on the remaining 9,000 euros. A clarification: to calculate the total that the Treasury will take from you, however, you need add up all your profits and subtract the losses you have had.

The reason is simple: Only net profit is subject to tax, As TaxDawn reminds us, for example, if you earn 10,000 euros and lose 4,000, you will only have to declare and pay taxes on the remaining 6,000 euros.

Mikel Merino celebrates his goal against Germany.

REUTERS.

And what happens if you only have made losses? These will also have to be declared. “Doing so can help you reduce the amount of tax you have to pay. However, in order to declare losses, you must keep a detailed record of all your bets and submit the appropriate documentation to the Treasury,” TaxDawn points out.

Finally, if you are not required to file an income tax return, you must comply with the tax authorities in this case: when profits exceed 1,000 euros and losses are greater than 500 euros.

Source: www.elespanol.com



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