Vietnam: Are persons getting lottery winnings required to pay PIT?
Are persons getting lottery winnings in Vietnam required to pay PIT?
According to Article 3 of the Law on Personal Income Tax 2007 amended by Clause 2, Article 2 of the Law on Amendments to Tax Law 2014, taxable winnings include:
...
6. Incomes from won prizes, including:
a/ Lottery winnings;
b/ Sales promotion winnings;
c/ Prizes won from betting;
d/ Winnings in prized games and contests and other forms of winning.
7. Incomes from copyright, including:
a/ Incomes from assignment or licensing of intellectual property objects;
b/ Incomes from technology transfer.
8. Incomes from commercial franchising.
9. Incomes from inheritances that are securities, capital holdings in economic organizations or business establishments, real estate and other assets subject to ownership or use registration.
10. Incomes from gifts that are securities, capital holdings in economic organizations or business establishments, real estate and other assets subject to ownership or use registration.
...
Thus, under current regulations, persons getting lottery winnings in Vietnam are required to pay PIT.
What is the tax rate on income from lottery winnings for residents in Vietnam?
According to Clause 7, Article 2 of the Law on Amendments to Tax Law 2014, the tax schedule is as follows:
2. Tax schedule:
|
Assessable income |
Tax rate (%) |
|
a) Income from capital investment |
5 |
|
b) Income from royalties, franchise |
5 |
|
c) Income from prize winning |
10 |
|
d) Income from inheritance, gifts |
10 |
|
dd) Income from capital transfer prescribed in Clause 1 of this Law Income from securities transfer prescribed in Clause 1 Article 13 of this Law |
20 0.1 |
|
e) Income from real estate transfer |
2 |
The tax rate on income from lottery winnings for residents is 10%.
Respectfully!
