If you win at an online casino, paying taxes will be the last thing you think about. However, knowing the tax laws for online gambling in New Zealand is crucial. Depending on the calibre of poker player you are, you may be very happy or unhappy.
Read on to learn if you must pay taxes on poker winnings in NZ.
Do Casual New Zealand Players Need to Pay Tax on Poker Winnings?
You will be thankful to know that if you’re a casual poker player, meaning that you only play it as a hobby, you don’t need to pay any tax when you win poker games.
Additionally, the amount of money you win doesn’t impact this law. For example, you could win 10 NZD or 10,000 NZD at poker, and the amount of tax to pay will still be zero.
However, the double-sided edge of this coin is that you cannot claim any losses made while playing online poker. So, for example, if you end up losing 100 NZD on poker games, you cannot claim any of that back. Therefore, remember that you cannot get away with claiming poker losses.
Do You Need to Pay Taxes for Poker Winnings in NZ if You’re a Professional Poker Player?
The only limitation to receiving tax-free poker winnings in New Zealand is that you must be a casual player who only plays poker as a hobby.
If you list your occupation as a professional poker player, you must pay taxes because playing poker is your income.
Even though gambling is a recreational pastime mainly revolving around chance and luck, many who know the details of poker know that it is more of a game of skill. Therefore, the tax laws acknowledge it as income if you are a professional.
Final Thoughts on Poker Winnings Tax in New Zealand
If you only play poker recreationally, rest easy knowing you won’t need to pay tax on any of your winnings.
However, because professional poker is essentially gambling as a business, NZ counts it as an income, so these players need to pay tax on it.
Also, these laws are always subject to change, so keep an eye on them if you love playing poker.
Frequently Asked Questions on Poker Tax in NZ
Like poker, every table game on online casinos in NZ is entirely tax-free. How much you win doesn’t matter; you won’t need to pay tax for any poker winning amount.
The only exception to this is if you’re a professional online player.
If you’re a recreational poker player in NZ, you don’t need to pay any tax on tournament winnings.
However, professional poker players in NZ must pay tax if they win a tournament.
You don’t need to list poker winnings on your tax return in NZ as of 2023.
However, despite no official requirement, we recommend you clearly record all your gambling efforts.
If you are still unsure, consult about poker winnings with a tax professional.