What about taxes in Swiss online casinos? You probably already know that winnings from “land-based” casinos are tax-free. However, this is different for online casinos. And that even if you play in one of the legal online casinos in Switzerland, winnings are always tax-free only up to the amount of 1 million francs.
Anything over CHF 1 million is subject to withholding tax and is taxed at source. This means that the casino withholds the tax directly from the winnings over CHF 1,000,000.00 and pays it to the state.
Don’t feel like reading much? Then watch our video on the subject:
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However, the withholding tax on the first million is not a big deal from our point of view either. After all, you rarely win more than CHF 1,000,000.00 in an online casino. And even if it did, the first million would still be tax-free in any case.
Example: You win CHF 1,000,000.00 playing online roulette in a legal Swiss online casino. Since this amount is below the CHF 1 million limit, you will receive the CHF 1,000,000.00 free of charge. No further taxes are payable on this. This then continues within one year up to the amount of 1 million francs.
So if you win CHF 1,000,001.00 in the online casino, you only pay withholding tax on the one franc. The first million, on the other hand, always remains tax-free. And on top of that, best casinos Switzerland also offer many other advantages, such as fair and random game outcomes and effective protection against slipping into a gambling addiction.
What is the withholding tax
Withholding tax is a tax levied at source. I.e.: it does not have to be declared separately by you, but is given to the tax authorities by the person who makes the payment to them. The purpose of withholding tax is to curb tax evasion.
Withholding tax is levied in Switzerland on capital gains, lottery winnings, life annuities, insurance benefits and pensions. As mentioned above, the withholding tax is also due on online casino winnings if they are higher than 1 million Swiss francs.
The limit of 1 million francs is a tax allowance. This means that they actually pay the withholding tax only from the first franc that is above the million.
As a rule, this is negligible for most winnings in online casinos. After all, as a normal player, you win in the thousands to tens of thousands at most. The big exception here would of course be winning the jackpot. However, jackpots in Swiss online casinos are also rarely significantly higher than one million francs.
Important: only with legal online casinos
Here it is important to mention again that you should definitely play in a legal Swiss online casino. Because online casinos without a license – or those with a license from Malta or the Caribbean (Curaçao) – could even be subject to withholding tax from the first Swiss franc.
This means that they have to pay tax in Switzerland on profits received abroad. If you do not do this, then the accusation of tax evasion is of course rapidly looming.
The bottom line is that you will not benefit at all from playing abroad and at unlicensed online casinos. Rather, use one of the online casinos listed above, where you can bag the first million francs tax-free. Because taxes in Swiss online casinos are regulated simply and transparently.
Even if illegal online casinos lure you with particularly high casino bonus offers. You never know if the games will be fair and if you will get your money in the end even if you win. That’s why it’s better to be safe than sorry and play at a legal Swiss online casino.
Tax revenue from Swiss online casinos
What must also be noted, however, is that Swiss online casinos make large contributions as taxpayers. So even as a player in a legal and licensed online casino, you are making a contribution to the community.
In any case, I wish you all the best in your games, great winnings and lots and lots of fun.
About the author: Alex Baumgartner
Hello! My name is Alex Baumgartner and I run the comparison portal Bestecasinosschweiz.ch.
I have been in the online gambling industry for many years and am the editor of the Gambling and Online Casino Compendium – a reference book on online casinos and gambling (ISBN: 9783744864473).
With over 10 years of experience in online gambling, I’ve seen almost everything before and am happy to pass this knowledge on to you.
My passion for online casinos is evident in my extensive testing, where I combine my enjoyment of the thrill of online casinos with my interest in sharing 100% objective experiences with you.