Withholding Tax on Withdrawals

Withholding tax is applied to withdrawals from gaming accounts, ensuring taxation only on gross winnings.

To setup Withholding Tax on Withdrawals, just go to Website → Settings → General and select Tax type.

The Deductible Stake is the total deposit since the last withdrawal or within the last 30 days, exempt from withholding tax at the next withdrawal. It resets to zero after each withdrawal, and can't be carried over if a withdrawal is less than the Deductible Stake.

Taxable Amount = Withdrawal Amount − Deductible Stake

Tax = Taxable Amount × Tax Rate

Where:

• Withdrawal Amount is the total amount the player wants to withdraw,
• Deductible Stake is the total deposit since the last withdrawal or within the last 30 days,
• Tax Rate is the rate at which tax is to be withheld.

For example, if a player deposits 100 and after winning wants to withdraw 200, the Deductible Stake is 100. The withholding tax will only be applied to the net amount of 100 (200 withdrawal - 100 deductible stake), ensuring that the player is not taxed on their original stake.

Also if a user requests a withdrawal, the tax is deducted immediately. If the withdrawal is subsequently rejected, the tax amount isn't refunded to the user; instead, the amount from which the tax was deducted is added to the Deductible Stake.

The admin panel displays withholding tax data in several places:

• Deposits & Withdrawals Logs - Summary report, has Withdrawal Tax Count and Withdrawal Tax Sum columns (by default these columns are not shown)
• Deposits & Withdrawals Logs - Detailed Report, displays Withdrawal Tax Transaction type.
• Users → User → User Records - Report displays Withdrawal Tax
• Users → Deposits & Withdrawals - Report has tax column that displays taxed amount for withdrawals (by default this column is not shown)