Income Tax on Gifts and Awards

Income Tax on Gifts and Awards

Definition

    Raffle prize is a gift with a name and in whatever form given by lot.
    Race rewards are rewards given through a race or contest dexterity.
    Gifts in relation to employment, services and other activities is a gift with a name and in whatever form given in relation to employment, services and activities performed by the gift recipient.
    The award is given in relation to reward achievement in a particular activity.
Cutting Income Tax
Cutting Taxes (Income Tax) are:

    Lottery organizers;
    Giver of Gifts.
Fare

    Top raffle prizes subject to income tax at 25% (twenty five percent) of the gross market value of the gift or gifts in kind and are final.
    Top prizes or awards, competitions, awards and prizes in connection with employment, services and other activities, subject to income tax under the following conditions:
        income tax imposed by section 21 of article 17 income tax rates of Income Tax Act, if the recipient taxpayer Affairs.
        subject to income tax article 26 amounting to 20% (twenty percent) and final of the gross amount by the provisions of the Double Taxation Treaty in force, if the recipient taxpayer besides BUT.
        subject to Article 23 of Income Tax at 15% (fifteen percent) of the amount of gross income, if the taxpayer receiving entity.
When Due, Deposit, and Reporting

    When payable
        Tax on gifts and awards outstanding at the end of the payment or delivery of prizes depending on events that occurred prior.
        Tax withheld by the organizers (prizes and awards) before prizes or awards given to the right.
        Operator shall make and give evidence tax cuts on Gifts or Sweepstakes, duplicate 3:
            sheet-1 to the prize (the taxpayer);
            sheet 2 to the Tax Office;
            sheet-3 for Operator / cutters.
    Deposit and Reporting
        Organizers sweepstakes or awards shall:
            deposit income tax withheld using the Tax Payment to the Bank or Post Office no later than 10 calendar months following the month in which the tax payable (collectively)
            submit an (SPT) Period to the Tax Office or the Office of Counseling and Consultation Services Tax Withholding places registered no later than 20 (twenty) months after payment of the prize or submission.
        In terms of maturity of deposit or tax filing deadline to coincide with holidays including Saturdays or public holidays, depositing or reporting can be done on the next working day.
Else
Not included in the terms of prizes and awards are subject to income tax in the sale of direct gifts of goods or services along given to all buyers or final consumers without raffle and the prize is received directly by final consumers when purchasing goods or services.