Money

Countries with Low Gambling Tax Rates

Two other countries with low minimum gambling tax rates are Liechtenstein and Austria. Liechtenstein allows individuals to wager only seven hundred Euros, a price that is equivalent to the cost of a single game of cards at most casinos. In addition, because most players at Liechtenstein do not place a high value on their winnings, there is very little risk for the casino’s management or for the authorities in charge of the taxes. Because players in Liechtenstein do not place a high value on their winnings, the government is able to eliminate a large amount of its taxes by allowing individuals to wager small amounts.

Gambling Tax Rates

Minimum casino earnings requirements vary widely between states and are based upon the casino’s, state’s and sometimes county’s total population. If you are a resident of Nevada, for example, and you earn over a certain amount of money from your gambling activities in a year, you will owe a Nevada gambling income tax of 10% on the amount earned. However, if you earn less than this amount, you will only owe that amount multiplied by your net income. So, by earning more than this amount, you can actually offset some of the tax you would otherwise owe. But, if you end up earning less than this amount, you will owe all of your winnings, as you were not meeting the minimum requirements.

In Georgia, the Gaming Board has published several cases which explain the breadth of the tax. For example, in the Georgia Supreme Court, the Eleventh Judicial Circuit Court of Appeals found that the tax constituted an income tax and was therefore properly applied to all people playing in state-operated casinos. The court found that the General Revenue Office had not properly classified the games in question as gambling, when in reality the Gaming Tax was applied to all poker players, both amateur and professional.

Tax Haven Countries

In other cases, the Tax qualified under a number of exemptions and exceptions. For example, it qualified if you were playing at a residence, if you won money on wagers while watching television or if you won money at an online site sponsored by a casino. Another important qualification is if you are playing for wagers that are considered to be high risk. The term high risk is what has been used in the past to describe slot machines with high payout percentages, and it generally refers to those machines which pay more than fifty percent per spin. The Gaming Board also has authority to add conditions to the regulation which will increase the tax-free amount.

 

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