{"id":1602,"date":"2020-08-12T14:25:17","date_gmt":"2020-08-12T14:25:17","guid":{"rendered":"https:\/\/www.newbettingsites.co\/?page_id=1602"},"modified":"2023-03-02T17:55:54","modified_gmt":"2023-03-02T17:55:54","slug":"can-you-claim-back-gambling-tax","status":"publish","type":"page","link":"https:\/\/www.newbettingsites.co\/articles\/can-you-claim-back-gambling-tax\/","title":{"rendered":"Can You Claim Back Gambling Tax From Other Countries?"},"content":{"rendered":"

\"taxIn the United Kingdom, people who win money via gambling don\u2019t have to pay tax on their winnings. That doesn\u2019t mean that tax isn\u2019t paid, but rather that the tax is paid by the betting operators<\/a> rather than the people doing the bettors. The same isn\u2019t true of all countries, however, with the United States of America being a good example of a country that does ask for tax on gambling winnings.<\/p>\n

If the UK has a tax arrangement with the country in question then you can claim back the tax that you\u2019ve paid. With Las Vegas being a particularly popular resort for British guests to head to, it\u2019s no surprise that Brits are keen to understand how the tax is reclaimed and if there are any rules and regulations in place on doing so. This typically involves filling out paperwork and reporting the information to HMRC.<\/p>\n

Reciprocal Arrangements<\/h2>\n

\"reciprocalHer Majesty\u2019s Revenue & Customs have tax treaties with a wealth of countries<\/a> all around the world. From Albania to Hungary, India to Kenya, there\u2019s barely a nation on earth that HMRC doesn\u2019t have some sort of agreement or arrangement with. Not all of them include gambling, of course, but the very fact that there are treaties in place means that there will be laws and regulations to abide by, depending on where you win your money.<\/p>\n

What happens when it comes to gambling winnings is not to be confused with so-called Double Tax Treaties<\/a>. This is when someone is resident in two countries<\/a> and wants to avoid paying tax in both of them. That\u2019s entirely different from someone who has won money by gambling in a country that is not the United Kingdom and therefore wants to reclaim the tax that\u2019s been paid on it. The latter is obviously what we\u2019re looking at here.<\/p>\n

How It Works<\/h2>\n

\"doubleThe Double Tax Treaty is worth mentioning, though, because it\u2019s what ensures that British residents don\u2019t have to pay tax on money won in a country that we have an agreement with. Let\u2019s look at the United States of America as the perfect example. Article 22 of our agreement with the US states the following<\/a>:<\/p>\n

\u201cItems of income beneficially owned by a resident of a contracting state, wherever arising, not dealt with in the foregoing articles of this convention (other than income paid out of trusts or the estates of deceased persons in the course of administration) shall be taxable only in that state.\u201d<\/p><\/blockquote>\n

This essentially means that the tax is a matter between the resident of the United Kingdom and the United States\u2019 Inland Revenue Service. In America, the IRS adds a 30% Withholding Tax on gambling winnings automatically. This means that residents of other countries, where tax is not paid on gambling winnings, must apply to the IRS to get the funds released.<\/p>\n

Form 1040NR, U.S. Nonresident Alien Income Tax Return, is the one that you\u2019ll need to ensure that you\u2019ve filled in if you later wish to reclaim money<\/a> paid in tax in the United States. You\u2019ll also be required to fill in a 1042-S, Foreign Person\u2019s U.S. Source Income Subject to Withholding. This will then allow you reclaim some, if not all, of the 30% tax paid on your winnings.<\/p>\n

It\u2019s Complicated<\/h2>\n

\"TaxIn America, companies exist for the sole purpose of reclaiming money lost in tax. They can charge a fee of as much as 50% of the lost amount, but they take away the stress of ensuring that you\u2019ve filled in the correct paperwork and given the correct information. There are, of course, different rules in different countries and certainly different forms that you\u2019ll need to fill in.<\/p>\n

It is far from being a one-size fits all situation, so you\u2019ll need to make sure that you find out exactly what the rules and regulations are before you head to a foreign country and start gambling. The likes of Spain, France and the Netherlands all have tax rules of their own when it comes to gambling, so you\u2019ll need to make sure that you know that they are if you\u2019re betting there.<\/p>\n

The treaties mentioned elsewhere in this piece are important because their very existence means that residents of the United Kingdom almost never have to worry about paying tax on their winnings when they gamble abroad<\/a>. Yes, tax is paid on money spent gambling, but as it\u2019s not paid by the players it\u2019s not something that you\u2019ll need to worry about.<\/p>\n

This is the case whether the person doing the gambling is an amateur or considers themselves to be a professional, so if you\u2019ve spent an age practicing your poker face then you don\u2019t need to worry about entering tournaments. You can win in Las Vegas or Macau and your winnings will be yours alone to spend how you wish, even if you need to jump through hoops to claim it all.<\/p>\n

Where To Gamble<\/h2>\n

At the time of writing, there are fifteen countries other than the United Kingdom that do not tax people on their gambling winnings. They are as follows<\/a>:<\/p>\n