What are answers for Week 3 of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province? Is the first prize from this contest taxable?

What are answers for Week 3 of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province?

The following are the detailed answers for Week 3 of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province for your reference:

Note: The answers for Week 3 of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province are for reference purposes only!

What are answers for Week 3 of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province? (Image from the Internet)

What is the prize structure for the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province?

Based on the provisions of Article 6 of the Rules of the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province, here outlines the prize structure as follows:

(1) Form of Award: The Organizing Committee will award certificates and cash prizes to individuals and teams who win during the competition's conclusion ceremony.

(2) Prize Structure

- Individual Awards: Each competition has 11 prizes, including: 01 first prize, 02 second prizes, 03 third prizes, and 05 consolation prizes.

- Team Awards: After completing 4 competitions, team awards will be judged, including: 01 first prize, 02 second prizes, 03 third prizes, and 05 consolation prizes. Team awards will be calculated based on district, city, and provincial party committees directly under the Provincial Party Committee.

Criteria for Winning Team Awards: Localities, units that promote and encourage participation will be prioritized based on the number of individual prizes won, including first, second, third, and consolation prizes throughout the 4 competitions. (The specific judging results will be determined by the Competition Organizing Committee).

(3) Prize Value

Individual Prizes:

- 01 first prize worth 2,000,000 VND/prize.

- 02 second prizes, each worth 1,500,000 VND/prize.

- 03 third prizes, each worth 1,000,000 VND/prize.

- 05 consolation prizes, each worth 500,000 VND/prize.

Team Prizes:

- 01 first prize worth 5,000,000 VND/prize.

- 02 second prizes, each worth 3,000,000 VND/prize.

- 03 third prizes, each worth 2,000,000 VND/prize.

- 05 consolation prizes, each worth 1,000,000 VND/prize.

Is there any tax imposed on winning the first prize in the Competition about the Historical and Cultural Traditions of Quang Nam, History of the Communist Party of Vietnam of Quang Nam Province?

According to clause 6, Article 3 of the Personal Income Tax Law 2007 (amended by clause 2, Article 2 of the 2014 Law on Amendments to Tax Laws) the regulation is as follows:

Taxable Income

Taxable personal income includes the following sources, excluding tax-exempt income specified in Article 4 of this Law:

...

6. Income from winning prizes, including:

a) Lottery winnings;

b) Prize winnings from promotions;

c) Prize winnings from betting activities;

d) Prize winnings from games, contests, and other forms of prize-winning.

...

According to point d, clause 1, Article 15 of Circular 111/2013/TT-BTC, the regulation is as follows:

Basis for Tax Calculation for Income from Winning Prizes

The basis for calculating tax for income from winning prizes is the taxable income and tax rate.

1. Taxable Income

Taxable income from winnings is the value of the prize exceeding 10 million VND that the taxpayer receives each time without regard to the number of payments.

If a prize is won by many people, the taxable income is divided among the recipients. The prize winner must present legal evidence to prove this. If there is no legal evidence, the winning income is considered for one individual. If an individual wins multiple prizes in a contest, taxable income is based on the total prize value.

Taxable income for some prize-winning games, to be specific:

...

d) For winnings from games and contests with prizes determined each time the prize is collected, the prize value exceeding 10 million VND that the player receives is taxable, regardless of any expenses deducted.

...

Thus, according to the regulation, if a contestant receives a prize value over 10 million VND, they must pay personal income tax on the amount exceeding 10 million VND, but if the prize is 10 million VND or less, they do not need to pay personal income tax.

However, according to the prize structure of this competition mentioned above, the first prize is worth 2,000,000 VND for individual awards and 5,000,000 VND for team awards, therefore, the value of both prizes is under 10 million VND. Thus, winning the first prize from this competition does not require paying any tax.