The Spanish Ministry of Finance is seeking to make tax module amendments to ensure the disclosure of gambling winnings under €300.
Plan disclosed via a proposal made open to the public, in which the government detailed its intentions to ‘fix a deficiency’ in income declarations submitted to AEAT, the tax authority in Spain.
The Treasury seeks to amend tax Module 190 related to “personal income declarations for business, economic, gambling and capital gains” to ensure that prizes below €300 are disclosed to AEAT.
Spain’s current tax code accounts for two types of gambling declarations. The first is for prizes from state lotteries such as ONCE and SELAE and the second form is required for winnings taken from casino games and sports betting.
Currently, Spanish tax laws impose a 20% tax on lottery winnings exceeding €2,500 that is applied to a personal income exemption of €40,000 per year.
Meanwhile for sports betting and casino, a four-tier framework is applied which consists of a base rate of 19% on winnings up to €12,450, a secondary tier of 24% between €12,450-to-€20,200, followed by 30% on €20,200 to €35,200, and a final top tier charge of 37% applied on all other winnings/prizes.
Module 190 ensures that Spanish citizens disclose to AEAT all gambling winnings, except for prizes below €300 that have remained unaccounted to date.
The Ministry explained that it wanted to amend the tax module for the fiscal year of 2022, to be declared in 2023.