Is Lottery Winnings Subject to Tax?
Clause 1, Article 1 of Resolution 01/2010/NQ-HDTP stipulates:
"Illegal gambling" is an act of gambling carried out in any form for the purpose of winning or losing money or other valuables without permission from the competent state authority, or with permission from the competent state authority but conducted not in accordance with the regulations in the granted license.
Clause 4, Article 1 of Resolution 01 also stipulates that "playing lottery numbers" is also a form of illegal gambling.
The act of purchasing lottery numbers may be subject to administrative penalties as prescribed in Clause 1, Clause 6, and Clause 7, Article 26 of Decree 167/2013/ND-CP:
- A warning or a fine ranging from 200,000 VND to 500,000 VND shall be imposed for the act of purchasing lottery numbers.
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- Additional forms of punishment:
Confiscate the objects, means of administrative violations, and confiscate the money obtained from administrative violations for acts prescribed in Clause 1; Clause 2; Point a, Clause 3; Points b, c, d, Clause 4, and Clause 5 of this Article.
- Foreigners committing administrative violations as prescribed in Clauses 1, 2, 3, 4, and Clause 5 of this Article, depending on the severity of the violation, may be subjected to expulsion from the Socialist Republic of Vietnam.
Conversely, if the amount of money used to purchase lottery numbers ranges from 5,000,000 VND to less than 50,000,000 VND, or less than 5,000,000 VND but has previously been subjected to administrative penalties, the individual may face criminal responsibility according to the provisions of Article 321 of the 2015 Criminal Code:
Anyone who illegally gambles in any form with stakes in money or other valuables ranging from 5,000,000 VND to less than 50,000,000 VND, or less than 5,000,000 VND but has been administratively sanctioned for this act, or acts specified in Article 322 of this Code or has been convicted of this crime or the crime prescribed in Article 322 of this Code, not yet criminally expunged yet continues to violate, shall be fined from 20,000,000 VND to 100,000,000 VND, subject to non-custodial reform up to 03 years, or imprisonment from 06 months to 03 years. (This clause is amended by Clause 120, Article 1 of the amended Criminal Code 2017)
Whoever commits the crime under any of the following circumstances shall be sentenced to imprisonment from 03 years to 07 years:
a) Professional nature;
b) Money or valuables used for gambling worth 50,000,000 VND or more;
c) Use of the internet, computer networks, telecommunications networks, electronic means to commit the crime;
d) Dangerous recidivism.
- The offender may also be fined from 10,000,000 VND to 50,000,000 VND.
Thus, lottery winnings from illegal lottery games are unlawful and not subject to state taxation. Engaging in illegal lottery games is unlawful and may result in administrative penalties or criminal prosecution, and the money obtained from the violations may be fully confiscated.
The editorial board informs you!
Sincerely!
