There is some confusion about taxes on casino winnings in Belarus. On the one hand, there is the Tax Code, which specifies that citizens must pay 4% on winnings from gambling. On the other hand, if you study this issue more deeply, some sources talk about a tax of 13%. Surprisingly, both versions are correct. If in Russian legislation there is one tax on any gambling winnings, then in Belarus it's all about the details.
Paragraph 5, Article 173 of the Tax Code of the Republic of Belarus reads:
The income tax rate for individuals is set at 4 percent in relation to income in the form of winnings (returned unplayed bets) received by individuals from organizers of gambling - legal entities of the Republic of Belarus.
The last words “legal entities of the Republic of Belarus” are the key here. The fact is that in Belarus, as in Russia, it is forbidden to organize online gambling. Therefore, there simply cannot be online operators that could be registered in the country.
Someone argues that Article 173 applies to both land-based and online casinos, but there is no evidence for this in the legislation. Since the article emphasizes that a legal entity must be in the Republic of Belarus, then online casinos cannot fall into this category.
online casino winnings are classified as income received from sources outside the Republic of Belarus. And they are subject to the standard tax rate of 13%.
In accordance with article 172 of the Tax Code of the Republic of Belarus, income is fixed on the day when online casino transfers money to your account. That is, not actually when you received the winnings and not when you cashed out.
You cannot deduct bets that you have lost to determine your taxable base. Let's say you deposited $200, lost $100, and then won $300, which you then cashed out. The tax will need to be paid from $300, that is, $39 ($300x13%). If you want to deduct the lost $100, then it will be wrong, moreover, it will be a violation of the law. Everything you withdraw from an online casino will be taxed, even if this amount includes your deposit. Only if you can prove that the money was not involved in the game can you avoid paying taxes on it.
After you withdraw money from the casino, you have until March 1 of the next year to submit a declaration, and another time until May 15 to pay tax. If the conclusions are in foreign currency, then the following rule applies (clause 6, article 156 of the Tax Code of the Republic of Belarus):
The payer's income received in foreign currency is recalculated into Belarusian rubles at the official exchange rate of the National Bank of the Republic of Belarus, established on the date of actual receipt of income.
Players can pay a fine for deliberate understatement of the tax base, as well as tax evasion, with a maximum penalty of seven years in prison. Everything will depend on the amount of unpaid tax. Major damage is considered to be more than 1,000 times the base value. Extra large - 2,500x base units. The base value for today is 24.5 rubles.
Note to Russians
While I was studying the issues of taxation in Russia and Belarus, I noticed messages on some forums that land-based casinos in Belarus send data on winnings to the Russian tax authorities if Russian players play with them. As a result, Russians receive notifications that they must pay tax on their winnings.
At the moment, paying 4% of online casino winnings would be a violation. But in September 2017, the government considered the possibility of legalizing online casinos. Yuri Pisakov, head of the gambling department of the Ministry of Taxes and Duties of Belarus, said then that in the event of legalization of online gambling, players would pay 4% of their winnings. But this is on condition that the winnings will be received from Belarusian operators. Yuri Pisakov also confirmed that now online casino players pay a tax of 13%.
The issue of legalizing online casinos in Belarus is still open, and a decision is expected in the next few years.
