Today’s posting topic is to find out if foreigners can also purchase Korean Lotto and receive the prize money.
can foreigners play lottery in korea
A foreigner who visited Korea bought a lottery ticket in Korea, and if he wins, he or she can naturally receive a prize money, and he or she has to pay taxes on the prize money.
Since 2007, a total of 27,572 foreigners have won the lottery, and 25 foreigners have won the first prize by 2016.
If you are a foreigner, you must pay the same tax as a Korean, while if you are a non-resident, the tax rate is determined by the tax treaty signed with the country of residence of the non-resident.
A resident refers to an individual who has an address in Korea or has a residence for more than a year.”Residence” means a place where you live for a considerable period of time other than your address. If you continue to live for a certain period of time, that’s where you live.
If a resident, whether foreign or domestic, is clearly judged by this standard, he or she must pay income tax on lottery wins exceeding 50,000 won.
Lottery winners are classified as other income, so they do not add up to other income, but complete their tax obligations with withholding (separate taxation).
Other income less than 50,000 won (4th and 5th) does not have to pay taxes. Other income taxes must be paid at 20% of other income taxes if they exceed 50,000 won to 300 million won, and 30% of other income taxes if they exceed 300 million won, respectively. (Usually, the first prize winner of the lottery will pay 33% of the tax, and the second and third prize will pay 22%.)
Can foreigners receive the lottery prize if they win?
Yes, foreign nationals can receive the lottery prize if they win. The withholding tax will be determined based on whether the winner is a resident or non-resident in South Korea. If the winner is a resident, they will be subject to the same tax rate as Korean nationals. If the winner is a non-resident, the tax rate will be determined based on the tax treaty between their country of origin and South Korea.
Are there any restrictions on purchasing lottery tickets?
According to Article 5 of the Lottery and Lottery Fund Act (Sales Restrictions, etc.), individuals are not allowed to purchase lottery tickets exceeding 100,000 won per person. Individuals under the age of 19 are also not allowed to purchase lottery tickets.
Can lottery tickets be purchased with a credit card?
At offline retailers such as lottery booths and convenience stores, purchases can only be made with cash. For online purchases, customers can charge their accounts through bank transfers before making a purchase. However, the majority of people buy lottery tickets with cash, and many are not aware that they can buy them online.
Is it possible to cancel or get a refund for purchased lottery tickets?
In principle, the cancellation of Lotto 6/45 tickets is only possible when the tickets are not printed properly.