Switzerland: Loterie Romande welcomes decision on new tax law

Raising the tax threshold for lottery winnings
1000 francs. The Romande Lottery welcomes the final vote
Parliament
The Federal Parliament adopted Friday, June 15, by 195 votes to National Council and by 41 votes in the Council of States without opposition, the project bill proposing to raise the threshold of withholding tax levied on gains lottery to 1000 francs. The Romande Lottery welcomes this decision and wishes to Aura emphasize the importance this legislative change for Players: whereas now all lotteries and sports paris are taxed from 50 francs to 35%, this new law allow all winners to collect their entire gain up up to 1000 francs. The new law - which is the entry into force in 2013 - will make lottery games and more sports paris attractive as it will reduce such unequal treatment compared to gains cashed at casinos and on Internet sites illegal.
Developed following a parliamentary initiative submitted by the consultant in 2009 to States Paul Niederberger (PDC / NW), the bill proposing to raise the threshold withholding tax levied on lottery winnings to 1000 francs was accepted by the Federal Parliament on Friday, by 195 votes and the National Council by 41 votes to Council of States without opposition. The Romande Lottery welcomes the adoption of this legislative change, which combines several advantages. The new law, which the entry into force in 2013, will mitigate such inequality Treatment with gambling houses, whose earnings are not subject to tax anticipated, or the income tax cantonal and federal. It will also reduce the tax benefit of illegal Internet operators, who do not care withholding tax because they do not apply it. The new law, on the other hand, will end multiple procedures for lottery companies and tax administrations.
Currently - according to a law dating back more than fifty years - all gains lottery over 50 francs are subject to withholding tax at 35%, whether a gain on the Euro Millions in Swiss Lotto Plus, Sporttip, sports betting the Romande Lottery, or any other lottery game, such as tickets to scratch. Raising the deductible to 1000 francs and will simplify considerably the tax administration and therefore reduce costs. Must note that almost 95% of lottery winnings are below 1000 francs, while representing only 17% of the total value gains. This reduction administrative burdens resulting from the new law will directly benefit the utility public, since the lottery companies distribute all their profits to charitable projects, cultural and sporting.

Raising the threshold of withholding tax to 1000 francs will come into force in 2013, at a date still to be determined by the Federal Administration. According to most estimates, the lower tax revenues for federal and cantonal should be minimal, especially since it may be offset by revenue more from greater attractiveness of lottery games and paris sport. With the increase of the franchise, winning nine out of ten players some will be exempt from withholding tax. Another advantage for the players: the new law provides a deduction updates. Thus, 5% of lottery winnings, but at 5000 francs, will be deducted from the federal direct tax as acquisition costs. The cantons will remain free to fix themselves, in their legislation, the amount of standard deduction for updates.
In addition to the tax issues discussed, the Lottery Romande stresses the importance of raising the threshold of withholding tax in relation to the activity of illegal Internet operators, many of which explore in Switzerland and whose sites attract many players. By making lottery games and sports paris more attractive, raising the deductible to 1000 francs should help stem, even if only partially, emigration issues for locations of "offshore" whose profits serve only to enrich investors foreigners.
Unlike most illegal Internet operators, which perform no control and leave the door open to the excesses, the Lottery Romande, for his hand, offers the public a gaming environment completely safe and secure while encouraging the adoption of healthy gaming behavior. Since 1999, the Lottery Romande indeed leads a broad program of "Responsible Gaming", based on concrete measures to prevent and fight against excessive gaming.
Also remember that all profits from the Lottery Romande are being Serving the community: each year, over 200 million francs and are distributed to some 3,000 non-profit associations.
Contact:
Jean-Luc Moner-Banet, CEO, 021 348 13 13