The most common question from PCSO Philippine Lotto bettors is: Is there a tax on lotto jackpot winnings?
Although the National Internal Revenue Code of the Philippines, otherwise known as the Tax Reform Act of 1997 or Republic Act No. 8424, provides in Section 24 subsection B a 5% tax rate on winnings below Php10,000 and 20% tax rate on winnings above Php10,000, it also provides that Philippine Charity Sweepstakes and Lotto winnings are exempted from being taxed.
This means that the PCSO Philippine Lotto winnings are indeed tax free.
Winnings from PCSO Philippine Lotto Draws are exempted from taxation. This includes the jackpot prizes as well as the consolation prizes. So if you won the Grand Lotto 6/55 jackpot prize of almost Php700,000,000, you will get it in whole with no taxes to be deducted.
But is it really tax free?
In reality, it is not tax free, because a 5% tax has already been deducted from the Prize Fund.
According to the amended Republic Act No 1169, a 5% of the proceeds of the sale of tickets will be deducted from the prize fund payable to the Bureau of Internal Revenue in lieu of the income tax from winners.
Prize Fund is the part of the total lotto ticket sales that is intended for all the lotto prize winners including the conzolation prize winners.
Read More About PCSO Philippine Lotto Draw:
Read More About PCSO Grand Lotto 6/55 Draw:
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由 Blogger 於 6/16/2012 02:37:00 上午 張貼在 About Oz Lotto Instructions Everything.