Personal income tax on prizes won in prized games at entertainment centers has been guided by the Finance Ministry in Circular No. 164/2009/TT-BTC of August 13. Accordingly, a taxable income is the value of a prize in excess of VND 10 million won in a game played in various forms with or without a coin-operated gaming machine or games of luck with accumulated or periodical prizes for players and the like. However, each time of prize winning is considered a single game and income from a game is the difference between the prize paid in cash and the sum of money the player has paid for the game. Particularly for accumulated or periodical prizes for lucky players, income from prizes is the whole prize value before subtracting any expense.
From September 27, prize winners of those prized games are obliged to pay personal income tax at the rate of 10% without having to make tax registration. The tax withholding will be made by prize payers upon payment of remaining prize money to winners.
The new regulation supersedes the Finance Ministry’s guidance at Point 6.1, Clause 6, Section II, Part B of Circular No. 84/2008/TT-BTC of September 30, 2008, on the determination of taxed incomes of prize winners in prized games.-