Spain Clarifies Tax Law: Losses Can be Deducted
Spain has updated its income tax code this week, stating explicitly that losses can be deducted against wins when gamblers declare their annual winnings for tax purposes.
Players had been confused over how they were meant to declare their taxes, with some interpretations of the tax code suggesting losses from tournament entries or cash games pots cannot be deducted from prizes won in tournaments and pots.
Such a situation is unworkable, with even net losers being stuck with large tax bills. Some winners would face a tax bill that exceeds their annual net winnings.
Concern heightened in recent months after Spain regulated online gambling including online poker in June 2012.
According to a report in national Spanish daily El Pais, the new tax law will be retroactively applied to the beginning of the year.