Finanční správa připomíná změny ve zdanění příjmů z výher

The Financial Administration is reminding of the reduction in the tax exemption limit through a press release. The original limit has been significantly reduced from 1,000,000 CZK to 50,000 CZK. The new threshold will apply for the first time in 2024.

Winners and operators of competitions will now have to follow two different rules:

• For winnings from lotteries, raffles, and consumer competitions, the limit is assessed separately for each individual win. If the win exceeds 50,000 CZK, the operator will withhold a 15% tax, and the winner is not required to file a tax return.
• For other games, the 50,000 CZK limit applies to the difference between the total winnings and the deposits within a specific category of the game (e.g., sports betting, slot machines, live game tournaments). If the exemption limit for a particular game category is exceeded, the winner must report the winnings in their tax return and tax them at a rate of 15% to 23%.

More information, including specific examples, can be found in the Financial Administration's press release HERE.

For more detailed information, please contact the authors of the article or the advisory team at EY with whom you collaborate.

Authors:

Matěj Sladkovský

Dušan Grmela