What the winner of a million dollar jackpot needs to know

There is 45.3 million francs in the Swiss Lotto jackpot. The lottery company Swisslos expects that around 750,000 people will try their luck at squatting on Saturday, it announced at the request of the Keystone-SDA news agency. But what if you actually win? The most important questions and answers.

According to Swisslos, this depends on whether the winner played online or at a point of sale. In the first case, Swisslos knows who the winner is and will contact this person. When you contact us, we will discuss when and where to transfer the winnings. In the second case, the winner must contact Swisslos and provide the game receipt with the correct numbers. The whole thing must be done within six months, after which the winnings will expire.

The money is also directly available from Swisslos, they said. When the money reaches the winner depends on how quickly that person gets in touch.

Winners of large sums of money receive an advice brochure from Swisslos. Swisslos advises not to do anything until the initial excitement has subsided.

It is also wise to think carefully about who you want to tell your victory to. “A happy person is quiet and enjoys,” the brochure states.

Swisslos also encourages the winners to think carefully about making a break with their current lives. “What made you happy before you won will be good for you in the future,” the brochure says.

Different types of taxes apply if you win. First, the withholding tax: the first million is tax-free, 35 percent of the rest goes directly to the federal tax authorities. If someone wins 45.3 million francs, another 29.8 million will end up in the winner’s account.

All money must then be declared as income in the tax return and taxed by the federal government, the canton and the municipality. In addition, the money still in the account at the end of the year must be declared as assets. How much tax you have to pay depends on where you live. In addition, the previously paid withholding tax can also be reclaimed. In some cantons, income tax is lower than withholding tax, so the winner even gets some money.

According to the federal tax calculator, a single person living in Zug with an income and assets of 45.3 million francs should expect taxes of just over 10 million francs. In Geneva, using the same calculation example, taxes would amount to 19 million.

Yes that is possible. Lottery winnings are taxed at the end of the year where you live. However, this possibility could soon come to an end: last year the Council of States passed a motion proposing that in future lottery winners would be taxed where they live at the time they win. (saw/sda)