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Changes in Tax on Casino Activities in Vietnam

29th October 2014

 

 

 

 

 

 

 

Last week Vietnamese government suggested National Assembly to consider changing tax policy on casino activities.

Based on the discussion, government suggested eliminating Personal Income Tax (PIT), which is currently at 10% imposed on winners of more than VND 10 million in casinos and lotteries. The government explained some countries including the Philippines, Singapore, Laos, Malaysia and Macau do not impose PIT on gamblers.  It is also difficult to tax such earnings since the government cannot determine who the winner is.

If the PIT is imposed, the state fund will bare a shortage of VND 200 billion ( appropximately US$9.52 million). However, the shortage will be offset by rising 5% on Special Consumption Tax from the current 30% to 35%. The increase will add about VND 517 billion to the state budget ( equivalent to US$ 24.62 million). Some tax experts stated that tax rise may cause shock to the economy; therefore, Vietnamese Nation Assembly should be more careful when approving the new Special Consumption Tax.

(Source: vir.com.vn)

 

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