What are tax-free casinos?
There are many online casinos that provide tax-free profits. As long as they have a license from New Zealand or any other European country, you do not have to pay tax for what you win in Lucky games. If, on the other hand, they have a license from some overseas country, you must include it in your declaration to the tax agency and then pay profit tax on your withdrawals. Therefore, check the license so that you do not have to pay about 30% of the winnings in taxes. The most common licenses in Europe are from Malta, Gibraltar and Cyprus, and you can also check the official website of the Malta Gaming Authority where they explain which casinos are licensed with them.
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As mentioned, there are different licenses issued from different countries, and the rule of thumb is that it is EU countries that provide tax-free profits. There are also some countries that are not part of the EU, but still provide tax-free profits because they are part of the EEA (European Economic Area). Most casinos that exist nowadays are licensed in European countries but it is always best to check it out before you start playing. At most casinos, this information can be found directly on the casino's homepage. Otherwise, you can write and ask the casino before you start playing.
Why are European casinos tax-free?
It is written in the New Zealand income tax act that all winnings from lotteries organized in New Zealand, or in other states in Europe and the EEA, shall not be taxed. Before, there was a New Zealand monopoly on gambling and New Zealand players also needed to tax gambling from EU countries. However, it was later determined in a judgment of the European Court of justice that this violated the rules within the EU. This is because it is not allowed to discriminate against other member states in favour of the domestic. Therefore, New Zealand had to choose between stopping offering tax-free winnings from New Zealand casinos , or let all European casinos offer the Kiwis tax – free winnings-and they then chose the latter option.
More information about tax exemption
The basis of EC law is that a country cannot tax something that is tax-free within its own country. New Zealand cannot therefore ask players to tax casino winnings from other EU countries if winnings from New Zealand are not to be taxed. The New Zealand tax agency previously said that profits obtained in New Zealand should not be taxed, but that profits exceeding 100 New Zealand kronor from other countries should be taxed. However, as mentioned, they had to change their minds about this after the EC judgment. There should be free movement of services between the different countries of the EU, and the different countries should be able to compete with each other, for example with games and other services.
Tax-free casinos
To make it easier for you players, here are some examples of casinos that give you tax-free winnings. There are names such as Bethard, where Zlatan Ibrahimovic is a co-owner, there is Casumo Casino that offers an adventure alongside gambling while providing tax-free winnings, and there is Speedy Casino that pays out your tax-free winnings in just five minutes. If you want to win tax-free money without creating an account, there is the No Account Casino. The list of tax-free casinos can be long and therefore you should keep checking the license. A license that is relatively common but does not provide tax-free profits is that of Curaçao.
All casinos registered in the EU offer tax-free winnings.
Final words
As mentioned, it is most common with casinos that have a license in European countries, but it is always best that you as a player double check with the casino that this is true. If you play at an overseas casino, you have to pay around 30% tax on all winnings that exceed 100 New Zealand kronor, which can feel quite sour as almost a third of your winnings disappear. So check out the casinos we mentioned in the last paragraph that you know offer tax-free winnings. And you who have already found any other casino should check where their license comes from before you start playing.