Guides
Prize Money from Competitions, Lotteries and Betting: Is It Taxable?
Updated: 8 November 2026 Independently fact-checked.
Introduction
Winning a prize or prize money — whether from a competition, lottery or betting — is certainly exciting. But is it subject to income tax? The short answer: it depends on the nature of the activity and your status as a winner.
Basic principle: the nature of the activity decides the treatment
Tax treatment of prizes or winnings is determined by the nature of the activity:
- Occasional or passive betting — generally not subject to income tax.
- Active, systematic, repeated activity with badges of trade — may be considered a business or profession and is taxable.
Competition prize money for amateur winners
Competition prize money received by amateur winners may potentially be taxed as other income (s.4(e)/s.4(f) of the Income Tax Act 1967). However, the exact treatment depends on the facts of the case and any applicable exemption order; reference to RU 6/2017 (withholding tax on non-resident public entertainers) does not apply to general amateur winners — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. with HASiL before publication.
Specific exemptions for certain categories
Specific exemptions exist for certain categories. For example, competition winnings of professional athletes are covered by the Income Tax (Exemption) (No. 23) Order 1990 [P.U.(A) 428/1990] — as referenced in the example of RU 6/2017.
Resident winners
For resident winners:
- competition prizes are generally considered other income (s.4(e) or s.4(f));
- if an exemption order applies, it must be made in writing.
Frequently Asked Questions (FAQ)
Q. If I win a lottery occasionally, am I taxed? A. Occasional or passive betting is generally not subject to income tax. However, active, systematic and repeated activity with badges of trade may be considered a business and taxable.
Q. I won a competition prize as an amateur. Is it taxable? A. Competition prize money for amateur winners may potentially be taxed as other income (s.4(e)/s.4(f)), but the exact treatment depends on the facts of the case and any exemption order — this item still awaits official confirmation from HASiL — check again with HASiL before deciding. with HASiL before publication.
Q. Are professional athletes exempt? A. Competition winnings of professional athletes are covered by P.U.(A) 428/1990 in the example of RU 6/2017. For other cases, confirm the exact treatment with HASiL this item still awaits official confirmation from HASiL — check again with HASiL before deciding.
Q. What should I do if I am unsure? A. Without an exemption order or clear facts, confirm the exact treatment with HASiL or a qualified tax adviser.
Prize Money from Competitions, Lotteries and Betting: Is It Taxable?
- Occasional or passive betting — generally not subject to income tax.
- Active, systematic, repeated activity with badges of trade — may be considered a business or profession and is taxable.
- competition prizes are generally considered other income (s.4(e) or s.4(f));
- if an exemption order applies, it must be made in writing.
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: