Attention winners! Don't rush to get the bonus, you can pay less tax!
Lin Jizheng, a member of the National Taxation Bureau of the Central District of the Ministry of Finance, said that starting from December 1, 2018, the tax-free threshold has been increased from 2,000 yuan to 5,000 yuan, which means that winning prizes exceeding 5,000 yuan can only be redeemed. 20% income tax is withheld.
This revision of the "Standards for Withholding Rates of Various Incomes" increases the threshold for exemption from withholding of the lottery prizes held by the government from the current 2,000 yuan to 5,000 yuan, and will come into effect on December 1, 2018. These lotteries include uniform receipts, charity lotteries and sports lotteries. If the winner redeems the above-mentioned lottery coupons with a winning amount of more than 2,000 yuan but not more than 5,000 yuan after December 1, 2018, the income tax can be reduced by 20%. Taking the uniform invoice as an example, the unified invoice for the period of July to August wins the fourth prize, and the prize amount is 4,000 yuan. Since the prize redemption period is from October 6th to January 6th of the following year, if the winner waits until December to redeem the prize If you receive a bonus, you will be exempt from tax withholding of 800 yuan, and you will get a bonus of 4,000 yuan.
The lottery winners are reminded that the revision of the law cannot be applied retroactively, the bonuses received are not applicable to the new regulations, and the taxes that have been withheld cannot be refunded. Winners are also requested to pay attention to the redemption period of various lottery coupons, and do not exceed the redemption period because they want to pay less tax and claim the prize in a hurry.
Source: National Taxation Bureau, Central District, Ministry of Finance