If you win a lottery, you will need to pay tax. According to relevant regulations, an individual’s winning income from purchasing sports lottery tickets is incidental income and should be levied full personal income tax at a tax rate of 20%. Anyone whose one-time winning income does not exceed 10,000 yuan will be temporarily exempted from personal income tax; if it exceeds 10,000 yuan, the full amount of personal income tax shall be levied in accordance with the tax law.

The competent authority for the lottery industry in China is the Ministry of Finance of China. The issuance of lottery tickets must be reviewed and approved by the Ministry of Finance of China and then reported to the state for approval. It is issued by lottery issuing agencies approved by the Ministry of Finance. No other department has the authority. Approval of lottery issuance. The existing domestic lotteries are China Welfare Lottery and China Sports Lottery. Its issuing agencies are the China Welfare Lottery Issuance Center and the Sports Lottery Management Center of the State Sports General Administration (also known as the China Sports Lottery Management Center), which are affiliated to the Ministry of Civil Affairs and the State Sports General Administration respectively.

Prize:

At the same time that sports lottery tickets are sold, local agencies must announce the winning methods. The winning method should include the winning description, prize level division, winning quota, reward form, lottery time, location, announcement media, prize redemption location and prize redemption period, etc. The bonus shall be paid in cash in RMB and shall not be offset by other securities or mortgage certificates. In some areas, physical rewards are required. The physical objects must be famous and high-quality products that are practical for families, of good quality, and best-selling in the market, and their price must be lower than the local market retail median price.

After the redemption period expires, if the prize is not redeemed within the time limit, the prize will be deemed to have been automatically abandoned and will no longer be redeemed. All unpaid prizes will be included in the management of sports lottery income. The sports lottery sales management agency shall announce the winning and redemption status of the current sports lottery within one week after the prize redemption period ends.

Issuance costs:

Issuance costs refer to the expenditures for sports lottery printing, distribution, agency sales and related facilities and equipment purchase, leasing, maintenance and other items. The proportion of issuance costs in sports lottery funds shall not be higher than 25%, of which:

(1) The printing fee of sports lottery is 4%;

(2) National Sports Commission Sports The lottery management center's sports lottery issuance fee is 1%;

(3) The rest is local agency issuance and retailer sales fees.

Public Welfare Fund:

According to the relevant national regulations and the types of different lottery games, a fixed proportion of lottery funds extracted for national public welfare is the public welfare fund of sports lottery. Raising lottery public welfare funds is the main purpose of China's administrative agencies in issuing and selling lottery tickets. According to the provisions of the "Lottery Management Regulations" implemented in 2009, lottery public welfare funds are included in the unified management of central and provincial finances and are not used to balance the general fiscal budget. They are specifically used for social welfare undertakings such as education, medical assistance, and sports.