Vietnam may cut tax on casino winnings, impose consumption tax

Vietnam is considering scrapping personal income tax on casino winnings, but will instead impose a higher special consumption tax on casinos, local media reported.

Under the existing law, there is a 10 percent tax on winners of more than

VND10 million ($47.6) in casinos and lotteries.

“Still, it is impossible to determine people’s winnings. Thus, it is also difficult to tax such earnings,” Minister of Finance Dinh Tien Dung, was cited as saying.

The removal of the PIT will mean the state coffers will lose about VND200 billion ($9.52 million) a year. However, this sum will be offset by an increase in the special consumption tax (SCT).

The government has also proposed increasing the SCT for casinos from the current 30 percent to 35 percent. If this increase is approved, it could add VND517 billion ($24.62 million) to the state budget annually, the report said.

Casinos in Vietnam are currently subject to a 30 percent SCT rate, corporate income tax of 22 percent (20 percent from 2016), and value added tax of 10 percent.

 

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