Gambling is a lucrative business that has the potential to generate lots of income. Every country treats gambling differently, but most have strict regulations for all areas where it takes place. In some games, like gambling online, people have to follow certain rules. Thus, they might need to pay taxes when they play. For instance, in Singapore, people have to follow gambling laws. So, do you have to pay tax on gambling winnings in Singapore?
In most countries where gambling is regulated, there are various taxes applied. For instance, not only are gamblers’ earnings taxed but also the providers of gaming venues that offer their services for a fee or commission.
So, you will be required to give up all your money if it does happen. Also, how much would this tax on gambling winnings in SG cost?
Do you pay tax on gambling SG?
Are you concerned about whether your winnings will be taxed while playing at casinos in Singapore?
Well, good news there won’t be any tax on your gambling winnings. Instead, your tax responsibility is limited to income earned in Singapore. It means you must pay tax on any income you earned locally.
In Singapore, there is no capital gains tax. Therefore, casino earnings, whether it is domestic or international, are considered capital gains. Thus, they are not taxed.
Do you have to declare gambling winnings SG?
Notably, you are not required to disclose your winnings. Even if you do, you are unlikely to be required to pay tax on them. If you do not report your wins, make sure you keep track of them in case you’re summoned to explain the huge increase in your bank account.
So, who is responsible for paying the tax on gambling winnings SG?
Instead of you paying the tax on your winnings, the casinos are the ones who must pay the tax. Casinos such as Marina Bay Sands and Resorts World Sentosa in Singapore are required to pay a casino tax based on gross gaming revenue.
Furthermore, the Casino Regulatory Authority is in charge of overseeing Singapore’s casinos. Furthermore, the gaming revenues are taxed at the rate of 12% to 22%.
Singapore has two tax rates, which are:
The Gross Gaming Revenue (GGR) earned by premium players is taxed at 5%. On the other hand, the GGR earned by all other participants is taxed at 15%.
In addition, a premium player must have a deposit account with a minimum balance of SGD 100,000 before he can play any game in the casino. Furthermore, all gaming revenue is also subject to a 7% Goods and Services Tax.
How to calculate the Gross Gaming Revenue?
To calculate the casino tax, it’ll be based on the Gross Gaming Revenue (GGR) from the games. Here is the formula to compute the GGR:
GGR = A – B
A = it represents the total amount of net winnings received on all games played on the casino operator’s facilities.
B = refers to the Goods and Services Tax (GST) that the casino operator must pay under the GST Act (Cap. 117A) on all gaming supplies that the casino operator makes.
The Gaming Supplies refer to the betting and gaming services that the casino operators provide or conducted.
Net Win: Do you have to pay tax on gambling winnings SG?
When you make a bet in the casino, the casino operator is involved. The difference between how many bets were made and how many people won is called the net win.
- Table games and gaming machines that the players play against the casino operator are examples of this type of game.
- The entire value of all consideration in money or money’s worth that the casino operator receives determines the net win for a game.
- Tournaments and contests fall under this category since the participants compete against one another for a reward rather than against the casino.
Tax on Gambling Winnings SG: Casino Tax Rates
If a premium player deposits a minimum of $100,000 with a casino operator, then, the casino must pay a 5% tax rate. Also, the casino must pay a 15% tax rate to other players who establish an account with the casino.
Do you have to pay tax on lottery winnings in Singapore?
There are betting taxes and sweepstakes duties when you win in:
- Private lottery
In Singapore, the following betting activities are often subject to duty:
- Pari-mutuel or Totalisator betting (E.g. Horse racing, Toto)
- Betting on sporting events (e.g. football betting)
In the Betting and Sweepstake Duties Order, any other system or technique of cash or credit betting is owned, marketed, organized, controlled, or operated by an exempt organization.
Do you have to pay tax on gambling winnings in SG?
Notably, the winners are not subject to taxation in Singapore. Therefore, winnings from betting in Singapore, such as:
- Singapore Sweep
- Horse racing
- Slot machines
- Fruit machine (jackpot)
Also, casino winnings and other gambling income are not taxable since they are considered windfalls rather than income.
Instead, casinos must submit a monthly casino tax return and pay the casino tax by the 15th of the following month. Moreover, they should provide information on gross gaming revenue and casino tax for both premium and non-premium players in the casino tax return.
For example, by 15 Sept 2021, the casino tax return and casino tax for August should be filed and paid to IRAS.
In Singapore, are lottery winnings taxable?
Have you decided to try your luck in the gambling industry?
Then, most probably you are asking yourself this question right now. Do you have to pay tax on gambling winnings SG?
If you are concerned about your earnings being taxable, it is not a smart idea to begin playing at the casinos in this nation.
Lottery winnings in Singapore are not taxable. Therefore, you do not have to be concerned. As we have mentioned earlier, your tax liability is restricted to the money you receive in this country. Therefore, you only have to pay taxes on income generated in Singapore.
Do you have to pay tax on gambling winnings SG?
Since there is no capital gains tax in this country, then, lottery winnings from both within and outside the country are considered capital gains and are not taxed. Therefore, you also do not have to report your lottery winnings.
How do you compute the tax based on the type of gaming you do?
Before we proceed, you must know how to compute the GST. Here is the formula:
(7/107) x (amount of bets received – winnings paid out) = GST
1: To calculate the Pari-mutuel betting or Totalisator with connection to horse racing or sports betting like football with fixed odds:
25% x (Amount of bets received – Winnings paid out – GST)
2: To calculate the Pari-mutuel betting excluding horse racing but includes any other system or method of cash or credit betting like Singapore Sweep, 4D, or TOTO. Notably, the method of computation in the duty for pari-mutuel betting remains unchanged. The new tax rate will apply to all drawings held on or after July 1, 2014. Here is the formula:
30% x (Amount of bets received – GST)
While up to 30 Jun 2014, the computation is:
25% x (Amount of bets received – GST)
So, do you have to pay tax on gambling winnings in Singapore?
Are you still concern about whether do you have to pay tax on gambling winnings in Singapore? If so, then you should know that winnings, profits, incomes from gamblings are not taxable. Instead, they are considered capital gains. The main issue here is that you do not become a facilitator of illicit money laundering. Notably, cash movement in and out of Singapore is generally unrestricted. So, you can enjoy your winning whiles playing in Live casino in Singapore.
So, there will be no difficulties as long as the funds can be traced back to a reputable source. Also, you should be aware that the house always wins. Therefore, gains at casinos in Singapore are not taxed. Moreover, you may enjoy your winnings as much as you like when you leave the casino a winner.
Gambling Winnings in Singapore FAQs:
Are Toto’s winnings in Singapore taxable?
You will be glad to know that the winnings from betting or lottery games in Singapore are not taxable. Therefore, 4D, Toto, football, Singapore Sweep, horse racing, fruit machine (jackpot), and casino winnings are free from taxes. It is because your gambling winnings are considered as capital gains and not income.
Are casino profits taxable in Singapore?
Again, casino profits are not taxed in Singapore. You will not be required to pay any taxes on your winnings. Only income earned in Singapore is subject to taxation. To put it another way, you must pay tax on money earned locally.
What is “Totalisator” or “Pari-mutuel”?
Pari-mutuel or Totalisator in French is a machine that adds up all the bets. Then, automatically distributes the profits. For instance, you want to calculate the dividends (payout). You need to add up the entire amount of bets received on a certain horse. Then, you will divide it by the number of bets put.