Taxes can be a nightmare for anyone earning a lot of money. If you have won really big on an online gambling site in Canada, the first thing that might come to your mind is if you have to pay any taxes for this.
The good news is, no, there are no taxes for recreational players who are citizens of Canada.
The country has very consumer-friendly laws, and hence winning from lotteries, gambling, etc., are tax-free. It means you can visit wildz ca and play your favorite game without worrying about anyone asking you to pay any tax if you win. Check out more of the best canadian online casinos.
That being said, there are certain things that you need to know about the tax rules in the country concerning online gambling.
For recreational players
Canada does not levy taxes on online gambling wins because it is not a consistent source of income. The taxes are on your employment, property, or any other viable income source. Gambling is not considered to be a viable source as most Canadians do not make a living out of it. Even though you do not have to pay taxes for online gambling wins, you will have to declare it legally in your T5 form if you receive interest from this win. The interest earned is a source of income and hence is taxable. If you do not pay tax on this and are caught later, the government will penalize you.
For professional gamblers
If you are a professional gambler, online or offline, and make a living by betting, then you will have to pay taxes on the earnings. The professional players are viewed as freelance business owners by the government, taxable in Canadian law.
Winning in the USA or Las Vegas
If you are a Canadian citizen and win online gambling in the USA or Vegas, there is bad news. You might have to pay as high as half of your gambling winning amount as tax, which is around $1200. You would need to declare the earning, and if you do not do so, when you go to cash out your win, they will deduct around 30% of the total income. However, if you are a Canadian citizen working legally in the USA, you can declare any gambling losses that you might have incurred and receive a tax refund on it.
So, to sum it up, here are things to keep in mind –
- Canadian citizens playing online casino games for recreational purposes and winning money will not have to pay any taxes.
- If you win a lottery in Canada, that is not taxable as well.
- However, full-time or professional gamblers who make a living with online casino gamblings, have to pay income tax.
- Canadians gambling and winning in the USA have to declare it.
You will have to keep a few tax laws in mind when you win an online casino game. The laws change regularly, so it’s essential to keep yourself updated with the changing tax laws.