Sunday, August 1, 2010

Income taxes arising from the Prize and Awards


  • Sweepstakes prize is a prize with your name and in whatever form provided by the lottery.
  • Prizes or contest awards prizes or awards are provided through a race or contest dexterity.
  • Gifts in relation to employment, services and other activities is a gift with the name and in whatever form is given in relation to employment, services and activities performed by the gift recipient.
  • Awards are benefits granted in connection with the achievement of certain activities.
  • witholding tax
    witholding tax is:
    - Organizer of the lottery;
    - Giver of gifts


  • Raffle prizes subject to income tax amounted to 25% (twenty five percent) of total gross market value of prizes or gifts in kind and shall be final.
  • Prizes or awards, competitions, awards and prizes in connection with jobs, services and other activities, subject to income tax with the following conditions:
  1. subject to corporate income tax rate for Article 21 Article 17 Income Tax Act, if the individual taxpayer and the recipient of the Interior.
  2. subject to income tax under Article 26 amounting to 20% (twenty percent) and the finals of the gross amount by taking into account provisions of the Double Taxation Avoidance Agreement is valid, if the recipient of Foreign Taxpayers other than PE.
  3. subject to income tax under Article 23 amounting to 15% (fifteen percent) of total gross income, if the taxpayer recipient agencies, including PE.

When payable, the Deposit, and Reporting

  1. Currently payable
    - Income tax on prizes and awards outstanding at the end of the month or the payment of prizes handed depending on the events that occurred earlier.
    - Income tax withheld by the provider (prizes and awards) before prizes or awards given to the beneficiary.
    - The organizer shall make and give proof of income tax withholding on prize or Sweepstakes, dual 3:
    - Sheets to-one for a gift recipient (the taxpayer);
    - Sheets to-2 to the Tax Office;
    - 3rd sheet for Organizers
  2. Paying and Reporting
    Organizers sweepstakes or award shall:
    - Have paid the tax to be cut by using the Tax Payment into bank or Post Office Perception later than the 10th calendar month following the month when the taxes become due (collectively).
    - Lodges (SPT) period to the Tax Office where the collector is registered not later than the date 20 (twenty) next month after paying or handing over the lottery prize.

Not included in the definition of prizes and awards is the gift tax imposed directly in the sale of goods or services provided to all buyers along or drawn and the final consumer without a gift is received directly by final consumers when purchasing goods or jacket

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