Profitable the lottery is a dream that has crossed our minds at the least as soon as in our lives. Gaining access to massive quantities of cash virtually routinely appears to be a once-in-a-lifetime expertise. Nonetheless, What we by no means ask ourselves is the amount of cash we now have to pay for this stroke of luck.
And that is the place the Tax Administration Service is available in, also referred to as SAT, the tax assortment, inspection and auditing physique of Mexico. How a lot cash do it’s important to pay to the SAT in the event you win the lottery? Right here we inform you.
In line with the official SAT portal, it’s article 138 of the “Earnings Tax Regulation“(LISR) the laws that outline how a lot cash you could pay within the occasion of profitable a lottery-type prize.
The Earnings Tax Regulation is the laws that regulates the fee of taxes on earnings obtained each by people and authorized entities inside Mexico. This legislation establishes the bases, procedures and charges that have to be paid, in addition to the obligations and rights of taxpayers.
In article 138 of the LISR we will learn the next:
“The tax on prizes from lotteries, raffles, raffles and contests, organized in nationwide territory, will probably be calculated by making use of the speed of 1% on the worth of the prize corresponding to every ticket or complete ticket, with none deduction, supplied that the federal entities don’t levy a neighborhood tax on the earnings referred to on this paragraph, or the established tax doesn’t exceed 6%. The tax fee referred to on this article will probably be 21% in these federal entities that apply a neighborhood tax on the earnings. earnings referred to on this paragraph, at a fee that exceeds 6%”.
How fee to the SAT works
Let’s break this data down a bit. What article 138 is telling us is that, for any prize coming from a lottery, raffle, raffle or contest, the tax utilized It’s calculated utilizing 1% of the overall quantity that was obtained by every draw winner. Let’s take an instance.
Lets say that Juan and Ana received a profitable ticket for a lottery of 20,000 pesos. Then, each will get 10,000 pesos individually by dividing the overall prize. On this method, article 138 forces Juan to pay 1% of his 10,000 pesos, and the identical occurs for Ana. In the long run, every of them would get 9,900 pesos, since 1% of 10,000 pesos is 100 pesos. The SAT would obtain 100 pesos for every of the winners.
And now you realize. Whenever you win the lottery, 1% of what you get have to be paid to the Tax Administration Service. Could luck at all times be in your aspect.
