The deal with the 30% withholding rate for int'l players...

[zgall1]

Canada doesn't tax gambling winnings either. This is part of the American tax requirements.

[flavio321]

they only take 30% from your winnings? is this the tax rate for US players also? so we get to keep %70 of the total winnings? i remember IRS taking more than that from my reported income.

[Triggerle]

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Just out of curiousity, how would that work with a jurisdiction that doesn't tax gambling winnings and also has no reporting requirement of them (like Germany)? Is there a field in the form where I can put the fact that gambling winnings are totally off the radar with regard to my country's IRS?

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i'd like an answer to this too. i am a uk citizen with a uk passport.

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UK, Australia etc have a dual tax treaty with USA so UNLESS you live here (like this particular Aussie moron, ie me) you just show your passport, sign the tax form, return home and then are subject to the TAX CODE in your resident country..

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So will they pay out in full? Or will they withhold 30% and I then claim the rest of the money without showing any German tax records (like I said, not only are gambling winnings not taxed, you also don't have to declare them when doing your taxes).

[Rottersod]

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they only take 30% from your winnings? is this the tax rate for US players also? so we get to keep %70 of the total winnings? i remember IRS taking more than that from my reported income.

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It's not a tax rate for gambling winnings. The 30% is simply the amount that the US wants withheld.

[SlightlyMad]

If your country is subject to the 30% withholding regulation, you may be able to get that back if and only if you can prove other gambling losses within the USA. For Canadians, your entry fee is a gambling expense.

For example, as a Canadian, I did not cash for $5000 in earlier tournament entries. Let's say that I go down to the Main Event and miraculously win $35000. 30% ($10500) is withheld by the IRS. I do *no* other gambling this year in the US. I'm still required by the US Government to pay 30% on winnings, but they don't know about my expenses! I paid $15000 in tournament fees, so I only had a net profit of $20000. So, I can file with the IRS and receive 30% of the $15000 difference back ($4500), since I'm only subject to 30% tax on the net gambling win over the year. The US Government does not care (if you are subject to 30% withholding) what your government does with your tournament win.

If this is all income under Canadian tax law (let's assume that I do pay ... there's a different thread for whether it is taxable in Canada, don't start that debate here) ... I would claim $35000 in income, $15000 in expenses (tournament fees), calculate my tax rate and get to remove the $6000 US that I paid in US tax. (This is the intent of the US/Canada tax treaty; to prevent double taxation on the same income.) Since Canadian tax is generally higher than 30%, I would have to pay a marginal amount of money to the Canadian Government.

Note the way that a single tournament entry and win is handled. You must pay withholdings on your entry fee, and the only way to get that back is to file the 1040NR.

You must have an ITIN (International Taxpayer Identification Number) or a US Social Security number to file a 1040NR. The admin people at the Rio will help set you up with one if you need one. And remember to save your copies of your tournament receipts; that is your proof (for the IRS) that you actually entered those tournaments!

[PiquetteAces]

I agree with U. What's funny is that: The Venetian don't keep a penny from a dollar if a "foreigner" make a money finish, because they pay in chips. So I ask to the lady who was in charge to fill up my money'finish' paper-tax at the WSOP this: Why U donot do like the venetian ?

#1- That will attract more international players in ur tournies

#2- If I make a money finish of 2k$, the 600$ that U keep, I might have use it to buy in other/bigger tournies that if U wouldn't have kept it.

she told me: That's is not the policy of Harrah's casino to do like that.

- jpp

[jjacky]

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Just out of curiousity, how would that work with a jurisdiction that doesn't tax gambling winnings and also has no reporting requirement of them (like Germany)? Is there a field in the form where I can put the fact that gambling winnings are totally off the radar with regard to my country's IRS?

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i'd like an answer to this too. i am a uk citizen with a uk passport.

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UK, Australia etc have a dual tax treaty with USA so UNLESS you live here (like this particular Aussie moron, ie me) you just show your passport, sign the tax form, return home and then are subject to the TAX CODE in your resident country..

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So will they pay out in full? Or will they withhold 30% and I then claim the rest of the money without showing any German tax records (like I said, not only are gambling winnings not taxed, you also don't have to declare them when doing your taxes).

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they pay germans the full amount.

[kerr]

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Just out of curiousity, how would that work with a jurisdiction that doesn't tax gambling winnings and also has no reporting requirement of them (like Germany)? Is there a field in the form where I can put the fact that gambling winnings are totally off the radar with regard to my country's IRS?

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i'd like an answer to this too. i am a uk citizen with a uk passport.

[/ QUOTE ]

UK, Australia etc have a dual tax treaty with USA so UNLESS you live here (like this particular Aussie moron, ie me) you just show your passport, sign the tax form, return home and then are subject to the TAX CODE in your resident country..

Joe Hachem paid $0 tax on his $7.5 M but is now a pro so pays taxes

In UK if you consider yourself amateur than there is $0 tax

Unfortunately for me I get tax as I am now USA based

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I don't think you're correct. Hachem didn't pay tax in Australia on his winnings, but he would have paid the 30% withholding tax to the IRS. Australia does not have a tax treaty with the US, and neither does Lebanon. The countries that do, are: Austria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Russian Federation, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, and the United Kingdom.

What I'd like to know is which passport would be the easiest to obtain?