King of card games, Poker reached unprecedented popularity in the 2000s thanks to communication techniques. Now there is online poker, and big tournament TV broadcasts.
The world of poker quickly became very attractive with an online market representing nearly three billion dollars in 2010, according to some estimates. Faced with this popularity, the question of the payment of tax by the players arose.
Will you have to pay taxes if you win at poker? This article explains all about the taxation of poker players.
Paying Taxes: Who Is Taxable And Who Is Not?
It is especially professional players who are targeted by the state. Indeed, you are considered taxable when you usually play poker with the aim of making a profit. So the almost majority of casual gamers are not in the crosshairs of the tax authorities.
However, legalization remains rather vague. Indeed, it is sometimes difficult to determine the status of the game and to know when you are considered a professional player. Since 2016, the State has required casinos and other gaming venues to register your data (name, address, amounts won, etc.). Legally, the state considers those who habitually play and win big at poker to be professionals . So, when you only play occasionally and you have an activity that justifies your lifestyle, you are not normally affected by tax.
How Is The Tax Levied?
The news is not so good for all professionals because you are becoming a real business. You must have a bookkeeping and declare all your earnings. Certain expenses can be included in the costs.
However, it is possible to take advantage of the “white year”, an advantage that depends on the income for the year in which the withholding tax came into effect. If the income is lower than that received during the best of the previous three years, tax will not apply. Otherwise, the income will be partially taxed.
What Solutions To The Relentless Tax?
Do The Accounts :
To avoid any complications, remember to record all your profits and expenses for the year with their supporting documents. This will allow you to avoid irregularities and sometimes having to pay double.
The Temptation Of Tax Exile:
This extreme and sometimes dangerous solution is surely not to be recommended, especially when the income is not extraordinary. If you decide to leave France, you have the possibility of being a tax resident of another country, but don’t lie to the tax authorities because you risk big.
There you are, now you know if you are taxable or not.