Winning a 2 billion VND lottery ticket, how much tax do you have to pay is a question of many lottery participants. In the article below, MISA meInvoice will provide detailed instructions on how to calculate tax when winning the lottery according to the law.
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1. Do I have to pay taxes on winning a lottery ticket?
2. How much tax do you pay on lottery winnings?
For prizes worth less than 10 million VND
For prizes worth over 10 million VND
3. How much tax do you pay if you win a 2 billion lottery ticket?
4. Rights and obligations of lottery winners
1. Do I have to pay taxes on winning a lottery ticket?
Pursuant to Clause 6, Article 2 of Circular 111/2013/TT-BTC (amended by Clause 7, Article 25 of Circular 92/2015/TT-BTC), income from winning prizes subject to personal income tax is money or objects that
individuals receive in the following forms
income from winnings
Therefore, when winning the lottery, that income must pay personal income tax according to State regulations.
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2. How much tax do you pay on lottery winnings?
For prizes worth less than 10 million VND
Pursuant to Article 15 of Circular 111/2013/TT-BTC (amended by Circular 92/2015/TT-BTC), the basis for calculating tax on income from winnings is as follows:
Tax basis for lottery winnings
Thus, for prizes with a value of less than 10 million VND, personal income tax will not be required because the prize value is not at the level required to pay tax.
For prizes worth over 10 million VND
Pursuant to the provisions of Clause 1, Article 15 of Circular 111/2013/TT-BTC mentioned above, for lottery winnings with a value of over 10 million VND, personal income tax must be paid according to the provisions of law.
The tax calculation for winning the lottery is as follows:
Taxable income
Pursuant to the provisions of Clause 1, Article 15 of Circular 111/2013/TT-BTC regulating taxable income when winning the lottery:
Taxable income from winning prizes is the prize value exceeding VND 10 million that the taxpayer receives each time he wins, regardless of the number of times he receives the prize.
Personal income tax rate on income from lottery winnings
Pursuant to the provisions of Clause 2, Article 15 of Circular 111/2013/TT-BTC regulating the personal income tax rate when winning the lottery:
Personal income tax rate on income from winnings is applied according to the Full Tax Schedule with a tax rate of 10%.
Time to determine taxable income
Pursuant to the provisions of Clause 3, Article 15 of Circular 111/2013/TT-BTC stipulating the time to determine taxable income when winning a prize:
The time for determining taxable income for income from winning prizes is the time when the organization or individual pays the prize to the winner.
How to calculate personal income tax when winning the lottery
personal income tax on winnings
For example: Mr. Nguyen Van A won the lottery worth 100 million VND, determine the amount of personal income tax Mr. A must pay
