MAZARS: even 50 percent tax duties may be imposed on the poorly organized prize winning actions

Domestic consumers can also meet with promotional discounts every minute that are offering complimentary gifts, guaranteed prize or lottery to participate.

“The announcers of the promotions do not count with the tax burden inevitably linked to the construct or how these can be legally avoided or at least reduced. It is no exaggeration that a tax professional should be involved when planning any sweepstakes, because with a small change the entrepreneur can be exempted from unnecessary tax burdens”- Csizmadia Heléna, Tax Director of MAZARS told.