What tax rates apply to winnings?
Under the Personal Income Tax Law, personal income tax (PIT) applies to the portion of gambling and lottery winnings exceeding €3,000.
OlyBet automatically calculates and withholds tax in accordance with the withdrawal processing session rules, applying the following rates:
- 25.5%—on the taxable portion of winnings up to €105,300;
- 33%—on the taxable portion of winnings exceeding €105,300.
Important: The €3,000 tax-free threshold also applies to the total winnings received throughout the calendar year. If the full amount of tax has not been withheld during the year, you must declare your winnings in your annual income tax return and pay any outstanding tax.
If your total annual income taken into account for the additional tax calculation exceeds €200,000, an additional 3% tax applies to the portion exceeding that amount. You are responsible for calculating and paying this additional tax when submitting your annual income tax return.
Do I need to pay tax myself?
OlyBet automatically withholds income tax from the portion of winnings exceeding €3,000, in accordance with the withdrawal processing session rules.
However, you remain responsible for declaring taxable winnings in your annual income tax return, submitted to the State Revenue Service (VID).
If OlyBet or another winnings payer has not withheld the full amount of tax, you must pay any outstanding tax in accordance with Latvian law.
What is a withdrawal processing session?
For record-keeping purposes in the OlyBet system, withdrawal processing sessions are defined as fixed one-hour intervals around the clock. Each session corresponds to a specific clock hour, for example, from 00:00 to 00:59, rather than a period starting when a player logs into their account.
Logging back into your account does not, in itself, create a new withdrawal processing session.
Additional information
- For more detailed information on the taxation of winnings, please refer to the official guidance: State Revenue Service (VID) — Tax Guide.
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