Obtaining monetary rewards for enjoying sports
betting is, in the eyes of the tax authorities, a source of
additional income and, as such, must be declared in the Income Tax campaign of
the corresponding fiscal year.
It is a way of regulating the acquisition of
the monetary prizes derived from the practice of this activity related
to sports, and it allows to regularize the situation of those who obtain prizes
of diverse caliber.
It must be taken into account that, in the eyes
of the AEAT, the income obtained in sports bets and other games of
chance are considered as capital gains and, as such, it is compulsory to
declare them in the annual taxation of the Personal Income Tax (IRPF).
As with all sources of income subject to
compulsory taxation, the AEAT stipulates a series of requirements that
must be met in order to maintain the principle of fairness.
But let's go to the typical question in every
Income Tax campaign: from how much money must bets and the income obtained from
them be declared? Several data must be taken into account: the volume of
rewards, the sum of additional work income, and the volume of the same
income according to the number of annual payers.
As a general rule, it is compulsory to
include income obtained from sports betting and other games of chance when:
What happens if this income is not declared?
That the AEAT can initiate proceedings to force the declarant to pay a fine, equivalent
to 100% of the amount of the total earnings obtained.
It is worth mentioning that the AEAT has
the tools to detect any non-compliance derived from the declaration of income
from sports betting, stipulate how much the taxpayer must declare and apply the
corresponding penalties.
The main concern for taxpayers who have
obtained income from betting and gambling is to know how much to declare (in
betting, as in all other sources of income, contributions are divided by
brackets), from how much sports betting must be declared on a mandatory
basis (amounts of less than 1.000 euros are usually exempt from tax
obligations), and what deadlines exist for complying with these tax
obligations.
Well, according to the tax regulations in force
for the current Income Tax campaign, the IRPF brackets are divided according to
income, establishing a higher amount for those who receive more income.
Keep in mind that you must control, therefore, two brackets in your tax return:
the volume of your earnings and the volume of IRPF withholding, which depends
on the total income.
The current Personal Income Tax brackets are as
follows:
However, it should be borne in mind that the
application of these brackets is subject to the volumes of total winnings
discussed above. If the total betting rewards do not reach the minimum
figures, there is no obligation to declare such income.
The management of deadlines is important when
it comes to complying with tax obligations. The Income Tax campaign usually
starts in April, and it is crucial to consult the tax data and the draft tax
return to check that the AEAT has properly handled the data relating to
income and deductions.
Every taxpayer has the right to leave in the
hands of a tax manager the checking of the draft and the filing of the
return, so as not to worry about knowing from what amount to declare bets and
to delegate to more competent personnel all these issues.
In addition, the management of the times
will also fall on your shoulders, which gives a small advantage in terms of
preparation and checking of the fiscal and tax data of the taxpayer.
For the filing of the 2022 Income and Wealth
tax return, the deadline starts on April 11st and ends on June 30. If you wish
to contact the AEAT by telephone and file the return with the help of an
agent of the AEAT, you will have to wait until May, when the deadline for
telephone appointments opens. It is also possible to go in person to an AEAT
office to deal with any query related to the return and receive personalized
attention.
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