Do You Have to Pay Personal Income Tax on Lottery Jackpot Winnings? What Conditions Must a Winning Lottery Ticket Meet to Claim the Prize?
Is there a requirement to pay personal income tax on jackpot lottery winnings?
Based on Clause 6, Article 3 of the 2007 Personal Income Tax Law revised by Clause 2, Article 2 of the 2012 Amended Tax Law stipulates as follows:
Taxable income
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6. Income from winnings, including:
a) Lottery winnings;
b) Winnings from promotions;
c) Winnings from betting;
Income from winnings is subject to personal income tax, including:
+ Lottery winnings;
+ Winnings from promotions;
+ Winnings from betting, casino;
+ Winnings from games, contests with prizes, and other forms of winnings.
Income from lottery winnings is considered a form of taxable income, requiring lottery ticket buyers to pay personal income tax.
Based on Article 15 of the 2007 Personal Income Tax Law stipulates as follows:
Taxable income from winnings
1. Taxable income from winnings is the value of the prize exceeding 10 million VND that the taxpayer receives per each winning occurrence.
2. The time to determine taxable income from winnings is the time when the organization or individual pays the income to the taxpayer.
However, according to the above regulation on lottery winnings, taxable income applies to lottery winnings from 10 million VND or more. Therefore, for amounts below 10 million VND, this tax is not required.
Thus, jackpot lottery winnings are subject to personal income tax.
Is there a requirement to pay personal income tax on jackpot lottery winnings? What conditions must winning lottery tickets meet to claim the prize? (Image from the internet)
What conditions must winning lottery tickets meet to claim the prize?
Based on Clause 2, Article 29 of Circular 36/2019/TT-BTC stipulates as follows:
Regulations on awarding prizes for self-selected digital lottery
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2. Conditions for prize-claiming lottery tickets:
a) For certificate-type lottery tickets: The self-selected digital lottery ticket that the customer uses to claim the prize must be in its original form, not torn apart, not patched, not erased, not altered, and still within the prize-claiming period as regulated.
In cases of objective reasons, if a self-selected digital lottery ticket winning ticket is torn apart but still retains enough basis to identify the original form, authenticity of the ticket, and the lottery ticket is not suspected of fraud, and the torn position does not affect the elements to determine the prize, the digital lottery company will organize an investigation and decide on awarding the prize or refusing to award the prize for that customer. The decision authority rests with the Chairman or General Director of the digital lottery company as regulated in the Self-Selected Digital Lottery Participation Rules.
b) For electronic-type lottery tickets: The digital lottery company decides to award prizes to participants based on the participation information recorded and stored in the system of the digital lottery company compared to the information in the participant's registered account as regulated in Clause 3, Article 12, and Article 14 of this Circular.
c) Based on the stipulation at points a and b, Clause 2 of this Article, the digital lottery company regulates in the Self-Selected Lottery Participation Rules on specific conditions for prize-claiming self-selected digital lottery tickets.
Thus, prize-claiming lottery tickets must meet the following conditions:
- For certificate-type lottery tickets: The self-selected digital lottery ticket that the customer uses to claim the prize must be in its original form, not torn apart, not patched, not erased, not altered, and still within the prize-claiming period as regulated.
In cases of objective reasons, if a self-selected digital lottery ticket winning ticket is torn apart but still retains enough basis to identify the original form, authenticity of the ticket, and the lottery ticket is not suspected of fraud, and the torn position does not affect the elements to determine the prize, the digital lottery company will organize an investigation and decide on awarding the prize or refusing to award the prize for that customer.
The decision authority rests with the Chairman or General Director of the digital lottery company as regulated in the Self-Selected Digital Lottery Participation Rules.
- For electronic-type lottery tickets: The digital lottery company decides to award prizes to participants based on the participation information recorded and stored in the system of the digital lottery company compared to the information in the participant's registered account as regulated in Clause 3, Article 12 of Circular 36/2019/TT-BTC and Article 14 of Circular 36/2019/TT-BTC.
Who is eligible to participate in self-selected digital lottery games?
Based on Clause 1, Article 4 of Decree 36/2019/ND-CP stipulating the eligibility for participating in self-selected digital lottery games as follows:
- Vietnamese citizens residing in Vietnam or Vietnamese citizens residing abroad legally entering Vietnam, or foreigners legally entering Vietnam;
- Individuals who are 18 years old or older;
- Individuals with full civil act capacity as stipulated by Vietnamese law, except in cases where international treaties that Vietnam is a member of provide otherwise.
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