Gold tokens, what they are and how much they are worth in euros

Gold tokens are the tool used to reward contestants in game shows and reality television: from Inheritance to Business of Yours, from Big Brother to Masterchef.
Until a few years ago, Italian law prohibited cash payments in TV quizzes.
Otherwise, in fact, it would have been gambling (permitted only in authorized places).
However, thanks to the ruling of the Lazio Regional Administrative Court of 16 October 2018, cash payments can now be made as for the lottery game and national lotteries.
However, it is essential that the selection criteria and methods of access to the game are clearly defined.
Yet, in most cases prizes continue to be paid in gold tokens rather than euros.
The competitor loses out, as the value of a gold token is lower than what would have been due in the case of payment in cash.
In this regard, it is legitimate to ask how much the gold tokens are worth in euros, i.e.
what the amount actually won by the competitor is.
In other words, how much does someone who wins a jackpot earn? To calculate the amount won there are various assessments to make, from the value of the gold token in euros to the tax on winnings that applies in these cases.
How much are gold tokens worth? VAT on gold tokens How much are gold tokens worth in euros How much is gold worth today? Taxation of VAT television winnings on gold tokens Gold tokens were introduced for the first time in Italy way back in 1955, precisely as a form of payment in television prize quizzes.
These are actual gold tokens of varying weight and with the logo of the commissioning company engraved on both sides.
The overall value of the gold tokens that are given to the winner is more or less the same as that of the prize money won, but there is a clarification to be made: the television network immediately withholds 22% VAT from the winnings.
On a prize of 100 thousand euros, for example, you receive gold tokens with a total value of approximately 82 thousand euros (the VAT, in fact, is equal to 18,032.79 euros).
Furthermore, from this amount it will be necessary to subtract another few thousand euros, which will be "lost" with the transition from gold tokens to euros.
How much are gold tokens worth in euros After winning a prize pool on a TV quiz, or even on a reality show, you have to wait 3 to 6 months before receiving what you are entitled to (from which, as seen above, 22% VAT is subtracted ).
In detail, the winner is contacted by the metal bank which communicates the number of tokens that will be paid to him and confronts him with two possibilities: to directly transfer the gold tokens to the metal bank, but accepting an additional 5% withholding .
Therefore, out of an amount of 82 thousand euros, you receive 77,900 in euros; have the tokens sent home and then resell them personally at the Bank of Italy or at the jewelers authorized to collect the tokens (there is a list in the transport document that accompanies the prize money).
For shipping there is another small contribution to pay: it is usually free under 20 thousand euros, while for higher amounts it is approximately 0.15% of the value of the prize pool.
By opting for the latter solution, the winner of the jackpot decides if and when to change the gold tokens into euros.
In this case it must be considered that the value of gold fluctuates over time, so it is best to change it when the price is highest.
How much is gold worth today? Anyone who wins a prize in gold tokens today can smile, as the price is at its highest and the price per gram is increasing every day.
For example, as of January 16, 2024, one gram of gold is quoted at 60.25 euros in Italy.
Considering that each gold token made of 18 karat gold (therefore there are 750 parts of gold out of 1,000) weighs from 8 to 10 grams, for each single coin, the value can reach up to 450 euros.
Taxation of television winnings As expressly provided for by the TUIR, prizes and winnings belong to the category of miscellaneous income, which are subject to tax according to the cash criterion and for the entire amount, therefore no deduction is allowed.
These incomes are subject to withholding tax at source, and it is article 30 of Presidential Decree 600/1973 that establishes the rates that apply depending on the event from which the winnings originated.
In detail, while we have a 10% tax on prizes from lotteries, tombolas, lotteries or authorized charity stands, a withholding tax of 20% is applied to prizes from games played during radio and television shows.
For all other winnings, however, the withholding tax is 25%.
read also How should gambling winnings be declared?

Author: Hermes A.I.

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