Circular No. 42/2009/TT-BTC guides the withholding of personal income tax for lottery agents and individuals who win lottery prizes. This document stipulates registration, withholding, and annual tax settlement procedures for lottery agents and lottery companies, as well as regulations on the withholding of personal income tax from individuals who win lottery prizes worth VND 10 million or more.
适用范围
Individuals acting as lottery agents, lottery companies, and individuals who win lottery prizes valued at over VND 10 million.
要点
- Lottery agents must register for tax using Form 03 ĐK-TCT and submit their application to the Tax Revenue Office where they reside.
- Lottery companies are responsible for withholding personal income tax from the income of agents at a rate of 5% on income exceeding VND 4,000 per month.
- Lottery companies declare monthly taxes and settle annual taxes using Forms 01/KK-XS and 02/KK-XS, submitting their applications no later than the 30th day of the following month.
- Individuals who win lottery prizes worth VND 10 million or more must pay personal income tax on the amount exceeding VND 10 million.
- Lottery companies settle annual taxes using Forms 03/KK-TNCN and 06/KK-TNCN, paying the tax into the State Budget.
🌐 本文件的社会影响
- Positive impact: Reducing administrative burdens for lottery agents through clear guidelines on tax registration and annual tax settlement procedures.
- Negative impact: Increasing management costs for lottery companies due to the need to perform multiple tax declaration procedures.
- Individuals who win lottery prizes worth VND 10 million or more will bear the burden of personal income tax.
❓ 常见问题
What actions must lottery agents take to register for tax?
Lottery agents must submit tax registration applications using Form 03 ĐK-TCT to the Tax Revenue Office where they reside, along with copies of their national identity card or passport and business registration certificate or agency contract.
What is the withholding rate for personal income tax for lottery agents?
The temporary withholding rate on monthly income paid to agents ranges from 5% on amounts from VND 4,001 onwards.
When must lottery companies declare monthly taxes and settle annual taxes?
Lottery companies must declare monthly taxes using Form 01/KK-XS and submit their applications no later than the 20th day of the following month. They must also settle annual taxes using Form 02/KK-XS at year-end.
How much must an individual win from a lottery prize to be subject to personal income tax?
Individuals who win lottery prizes worth VND 10 million or more on a single ticket are liable to pay personal income tax.
What actions must lottery companies take when there is an individual who wins a lottery prize worth VND 10 million or more?
Lottery companies must withhold personal income tax and declare and settle annual taxes using Form 03/KK-TNCN, paying the tax into the State Budget.
全文
CIRCULAR
Guidelines on Withholding Personal Income Tax for Individuals Acting as Lottery Agents and Withholding Personal Income Tax for Individuals Receiving Income from Lottery Prizes
______________________________
Pursuant to the Law on Personal Income Tax No. 04/2007/QH 12 dated November 21, 2007 and its guiding documents;
Pursuant to the Law on Tax Administration No. 78/2006/QH 11 dated November 29, 2006 and its guiding documents;
Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby guides the registration, withholding, declaration, and settlement of personal income tax for individuals acting as lottery agents and withholding personal income tax for individuals receiving lottery prizes as follows:
Article 1. Scope of Application
1. Individuals directly signing contracts with lottery companies to act as lottery agents shall be subject to personal income tax. Personal income tax from the activity of being an agent includes commissions, bonuses, support payments, and other payments received from the entity assigning the agency.
2. Individuals winning lottery prizes.
Article 2. Tax Registration
1. Individuals acting as lottery agents must register taxes in accordance with the Law on Tax Administration and guiding documents implementing the Law on Tax Administration.
2. Tax registration documents:
- A tax registration form according to Form No. 03 ĐK-TCT issued together with Circular No. 85/2007/TT-BTC dated July 18, 2007 of the Ministry of Finance guiding the implementation of the Law on Tax Administration and the Law on Personal Income Tax.
- A copy of the identity card or passport;
- Business registration certificate or lottery agency contract signed with the lottery company.
3. Place to submit tax registration documents: Individuals acting as agents must submit their tax registration documents directly to the District or County Tax Office where they reside.
Article 3. Withholding Tax on Income Paid to Agents
- Withholding tax obligation: The lottery company paying income to individuals who have directly signed agency contracts with the lottery company shall withhold personal income tax from the individual agents at the rate and level as follows:
Unit: 1,000 Vietnamese Dong
|
Monthly income of the agent |
Temporary withholding rate on monthly income paid to the agent |
|
Up to 4,000 |
0% |
|
Over 4,000 |
5% |
- The lottery company has the responsibility to issue withholding certificates to lottery agents upon request of the lottery agents.
- The income of the agent according to this table is the income of the individual agent without deductions for dependent allowances, mandatory insurance contributions, charitable donations...
Article 4. Declaration and Settlement of Taxes
1. For lottery companies:
- Monthly tax declaration: Each month, based on the personal income tax withheld from agents, the lottery company declares taxes according to Form No. 01/KK-XS issued together with this Circular and submits the declaration to the tax authority directly managing the lottery company. The deadline for submitting the monthly tax declaration is the twentieth day of the following month.
In cases where the monthly withholding tax is less than five million dong, quarterly declarations should be made.
The deadline for submitting quarterly tax declarations is the thirtieth day of the first month of the quarter following the quarter in question.
- Annual tax settlement declaration: The lottery company must declare the settlement of personal income tax withheld from agents according to Form No. 02/KK-XS and prepare an accompanying Schedule according to Form No. 02A/BK-XS issued together with this Circular.
The deadline for submitting annual tax settlement documents is ninety days from the end of the calendar year.
2. For individuals acting as agents:Individuals acting as agents with taxable income must declare and settle taxes in the following situations:
- If the tax payable in the year exceeds the amount withheld or temporarily paid, or if there is additional income that requires tax payment but was not withheld or temporarily paid during the year.
- If there is a request for tax refund or offset against future tax periods.
The tax declaration and settlement documents, deadlines, and places for submission are implemented according to Clause 2.4 Point 2, Section II Part D of Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance, applicable to individual businesses.
Individual agents declaring and settling taxes must attach supporting documents for dependents (if claiming dependent deductions).
- Other cases do not require tax declaration and settlement.
Article 5. Withholding tax on personal income from lottery winnings
- Individuals who win lottery prizes with a value exceeding 10 million VND per lottery ticket are subject to personal income tax.
- The taxable income from lottery winnings is the portion of the prize value of each lottery ticket that exceeds 10 million VND received by the winning individual.
- The lottery company has the responsibility to withhold personal income tax for cases where individuals win lottery tickets with a value exceeding 10 million VND.
- Monthly, the lottery company must aggregate the personal income tax withheld for cases of winnings over 10 million VND and declare according to Form No. 03/KK-TNCN issued together with Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance, submit the declaration form and pay the withheld tax into the State Budget as prescribed. At year-end, the lottery company must settle the withheld tax according to Form No. 06/KK-TNCN and Schedule No. 06D/BK-TNCN also issued together with Circular No. 84/2008/TT-BTC mentioned above.
Article 6. Implementation:
1. This Circular takes effect 45 days from the date of signature and applies to the income of lottery agents from January 1, 2009.
2. Abolish the guidance contents regarding high-income personal income tax and corporate income tax applicable to individuals acting as lottery agents.
3. Other contents not specified in this Circular shall be implemented in accordance with the provisions of Circular No. 84/2008/TT-BTC dated September 30, 2008 of the Ministry of Finance guiding the implementation of certain articles of the Law on Personal Income Tax and guiding the implementation of Decree No. 100/2008/NĐ-CP dated September 8, 2008 of the Government detailing certain articles of the Law on Personal Income Tax. In the course of implementation, if there are difficulties, it is recommended that localities promptly report to the Ministry of Finance (General Department of Taxation) for research and resolution.
In the course of implementation, if there are difficulties, it is recommended that localities promptly report to the Ministry of Finance (General Department of Taxation) for research and resolution./.
DEPUTY MINISTER
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