Are points in online video games subject to personal income tax in Vietnam?
Are points in online video games subject to personal income tax in Vietnam?
Based on the provisions at Clause 6 Article 2 of Circular 111/2013/TT-BTC (some contents were annulled by Clause 7 Article 25 of Circular 92/2015/TT-BTC), income from winnings includes the following amounts:
Taxable incomes
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6. Income from winnings
Income from winnings are amounts of money or in-kind prizes that an individual receives in the following forms:
a) Lottery winnings paid by lottery companies.
b) Winnings from promotion activities upon buying and selling goods or services as regulated by the Commercial Law.
c) Winnings from gambling and betting that are legally permitted.
d) Winnings from games, contests with prizes, and other forms of winnings organized by economic organizations, administrative agencies, associations, and other organizations or individuals.
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And based on the provisions at Clause 40 Article 3 of Decree 147/2024/ND-CP, it is regulated as follows:
Interpretation of terms
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40. Points in online video games are rewards in the form of points that players receive during gameplay as designated and established by enterprises providing the online video game services. Reward points do not include game prizes, promotions, or other forms that can be converted and hold value outside the game.
41. Payment support services in online video games are all activities supporting enterprises providing online video game services to collect fees from players, including non-cash payment services, intermediary payment services, and other payment services as regulated by law.
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Thus, based on the above provisions, points in online video games are not subject to personal income tax from winnings as they do not include game prizes convertible to value outside the game.
Are points in online video games subject to PIT in Vietnam? (Image from the Internet)
Which entities are subject to personal income tax in Vietnam?
Based on Article 2 of the Personal Income Tax Law 2007, the specific subjects of personal income tax are as follows:
The subjects of personal income tax include resident individuals having taxable income specified in Article 3 of the Personal Income Tax Law 2007 arising within and outside the territory of Vietnam, and non-resident individuals with taxable income specified in Article 3 of the Personal Income Tax Law 2007 arising within the territory of Vietnam.
Resident individuals are those who meet one of the following conditions:
- Being present in Vietnam for 183 days or more calculated in a calendar year or within 12 consecutive months from the first day of presence in Vietnam;
- Having a permanent place of residence in Vietnam, including a registered permanent residence or a rented house for living in Vietnam under a lease contract with a term.
Non-resident individuals are those who do not meet the conditions specified in Clause 2 Article 2 of the Personal Income Tax Law 2007.
Which incomes are exempt from personal income tax in Vietnam?
Pursuant to Article 4 of the Personal Income Tax Law 2007, supplemented by Clause 3 Article 2 of the Law Amending Laws on Tax 2014 and amended by Clause 2 Article 1 of the Amended Personal Income Tax Law 2012, incomes exempt from personal income tax are as follows:
- Income from real estate transfer among spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and paternal grandchildren; maternal grandparents and maternal grandchildren; and siblings with each other.
- Income from the transfer of residential houses, homestead land use rights, and assets attached to homestead land of individuals who have only one house, homestead land.
- Income from the value of land use rights of individuals allocated land by the State.
- Income from inheritance or gift which is real estate among spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and paternal grandchildren; maternal grandparents and maternal grandchildren; and siblings with each other.
- Income of households and individuals directly producing agriculture, forestry, making salt, raising, and fishing unprocessed or preprocessed aquatic products.
- Income from agricultural land conversion of households, individuals allocated by the State for production.
- Income from interest on deposits at credit institutions, interest from life insurance contracts.
- Income from remittances.
- Part of night shift, overtime pay higher than the usual day shift, day work salary as prescribed by law.
- Pensions paid by the Social Insurance Fund; pensions paid by voluntarily established retirement funds monthly.
- Income from scholarships, including:
+ Scholarships received from the state budget;
+ Scholarships from domestic and foreign organizations under their scholarship promotion programs.
- Income from insurance contract compensations for life, non-life insurance, accident compensations, state compensations, and other compensations as prescribed by law.
- Income received from charity funds permitted or recognized by competent state agencies, operating for charitable, humanitarian purposes, non-profit.
- Income received from foreign aid for charitable, humanitarian purposes in government and non-government forms approved by competent state agencies.
- Income from salaries and wages for Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies operating internationally.
- Income of individuals who are ship owners, individuals having ship use rights, and individuals working on ships from activities supplying goods, services directly serving offshore fishing.
