Lottery Winnings FAQs

Q: Are lottery prizes subject to taxation?: A: Effective August 13^th 2018, lottery winnings are subject to taxation.
Q: What is the rate of tax?: A: Ten percent (10%).
Q: What is the Lottery Winnings Tax?: A: It is a tax charged on all prize money in excess of $1,000, paid to a ticket holder.
Q: Will I be charged this tax if my prize is a house or car?: A: The Lottery Winnings Tax is only charged on cash prizes.
Q: Who is charged the Lottery Winnings Tax (LWT)?: A: All persons who receive more than $1,000 on their bet, the tax will be deducted from their winnings in excess of $1,000.
Q: Do I have to pay the tax to the Board of Inland Revenue?: A: No. The tax will be deducted from your winnings and paid by the National Lotteries Board to the Board of Inland Revenue.
Q: Who is required to collect the tax?: A: The National Lotteries Board and its agents are required to collect the tax.
Q: What happens to the tax that is deducted from my winnings?: A: The tax that is deducted will be paid by the NLCB to the Board of Inland Revenue.
Q: Do I have to declare my winnings on my Income Tax Return?: A: No.