How to calculate excise taxed price when operating a casino in Vietnam?

How to calculate excise taxed price when operating a casino in Vietnam?

Based on Article 6 of the Law on Excise Tax 2008, amended by Clause 3, Article 1 of the Law on amendments toLaw on Excise Tax 2014 and Clause 1, Article 2 of the Law on amendments toLaw on Value-added Tax, Excise Tax, and Tax Administration 2016, the regulations are as follows:

Taxable Price

The excise taxed price on goods and services is the selling price, the service provision price excluding excise tax, environmental protection tax, and value-added tax, specified as follows:

1. For domestically produced goods and imported goods, it is the price at which the manufacturing or importing business sells the goods.

In cases where goods subject to excise tax are sold to commercial business units that are parent companies, subsidiaries, or companies under the same parent company as the manufacturing or importing business, or to commercial business units with an affiliate relationship, the excise taxed price must not be lower than a percentage (%) of the average price at which commercial business units directly purchase from the manufacturing or importing business as prescribed by the Government of Vietnam.

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5. For services, it is the service provision price of the business unit. Specific cases are regulated as follows:

a) For golf business activities, it is the price of membership cards and golf play tickets, including both golf play fees and deposits (if any);

b) For casino business activities, gaming with rewards, and betting business, it is the revenue from these activities minus the amount paid out as rewards to customers;

c) For nightclub, massage, and karaoke business activities, it is the revenue from these business activities in nightclubs, massage establishments, and karaoke establishments;

6. For goods and services used for exchange or internal consumption, gifts, or donations, it is the taxable price of similar or equivalent goods and services at the time these activities occur.

The excise taxed price on goods and services specified in this Article includes any additional charges received (if any) that the business unit is entitled to.

The taxable price is calculated in Vietnamese Dong. If taxpayers have revenue in foreign currency, the foreign currency must be converted to Vietnamese Dong according to the average exchange rate on the interbank foreign exchange market announced by the State Bank of Vietnam at the time the revenue is generated to determine the taxable price.

The Government of Vietnam will specify this Article.

The excise taxed price in casino business is the revenue from this activity minus the amount paid out as rewards to customers.

The taxable price is calculated in Vietnamese Dong.

If taxpayers have revenue in foreign currency, the foreign currency must be converted to Vietnamese Dong according to the average exchange rate on the interbank foreign exchange market announced by the State Bank of Vietnam at the time the revenue is generated to determine the taxable price.

How to calculate excise taxed price when operating a casino in Vietnam? (Image from the Internet)

What is the formula for calculating excise tax when operating a casino in Vietnam?

Based on Article 5 of the Law on Excise Tax 2008, the provisions are as follows:

Tax Basis

The basis for excise tax calculation is the taxable price of the goods and services subject to tax and the tax rate. The amount of excise tax payable is equal to the taxable price multiplied by the excise tax rate.

Therefore, the method to calculate excise tax when operating a casino is determined by the following formula:

Excise Tax = Taxable Price x Tax Rate

What is the maximum reduction of excise tax when operating a casino in Vietnam?

Based on Article 9 of the Law on Excise Tax 2008, the provisions are as follows:

Tax Reduction

Taxpayers manufacturing goods subject to excise tax who face difficulties due to natural disasters or unexpected accidents are eligible for tax reduction.

The tax reduction is determined based on the actual losses caused by natural disasters or unexpected accidents but must not exceed 30% of the payable tax amount of the year in which the loss occurs and must not exceed the value of the damaged assets after compensation (if any).

The maximum reduction of excise tax when operating a casino is determined based on actual losses caused by natural disasters or unexpected accidents but must not exceed 30% of the payable tax amount of the year in which the loss occurs and must not exceed the value of the damaged assets after compensation (if any).