It is well known fact that people can search for all varieties of goods and services through online. Online is a vast platform where the whole market in this world is brought under one roof.
When it comes to entertainment, people can see countless forms of entertaining elements under online. Gambling stands under the title of entertainment in many countries.
This condition also prevails in New Zealand were there are numerous gamblers who enjoy gambling in online. An important issue which strikes all forms of gambling is taxation.
Players in New Zealand also face such problem because many are uncertain about this particular title whether they should pay tax or not if they earn through their winnings in gambling.
Here is the brief clarification for the common question on laws of taxation on gambling in New Zealand.
Here is the good news for New Zealand gamblers
In New Zealand gambling is said to be entirely recreational. It is just observed as a hobby by the authorities in New Zealand and here comes the important point which says people need not get taxed on gambling winnings in NZ.
There is no need for the players in New Zealand to report their income to their government which they earn from their winnings in gambling. According to the income tax act 2007, the money which is won by the players through gambling falls under hobby.
It is now clear with the above said points that gambling is not considered as profession in New Zealand. An income earned by the individual is accountable to taxation only if the earnings is said to be professional.
No need not pay tax on gambling winnings in NZ and you can spend for your home expenses.
What Department of Internal affairs (DIA) says?
It is this department named department of internal affairs who completely administrates the gambling law in New Zealand.
There are certain regulations which must be strictly followed by a player who indulge in gambling and you need to be aware of gambling platform regulations as well. But this department gives entire freedom on taxation.
Also New Zealand income tax act (1535/1992) as well as lottery tax act (552/1922) says players need not pay tax on gambling winnings in New Zealand. Players residing in New Zealand will enjoy the tax free gambling and they can make money in their good time.