Vietnam's Ministry of Finance and Ministry of Justice proposed taxing winnings progressively in a 2023 draft amendment to the Personal Income Tax Law, arguing the country's flat rate was too low compared with other countries1. The proposal was made during consultation on the revised law, and the finance ministry did not agree to a separate request to raise the threshold at which winnings become taxable1.
Under the current law, people who win prizes pay tax on the portion of income above 10 million dong, applied to each win at a rate of 10 percent1. Taxable winnings cover money and goods paid by lottery companies and seller promotions, and also prizes from legal betting or games and contests1.
The Trà Vinh provincial government asked for the taxable threshold to be raised from 10 million to 20 million dong, meaning only the amount above 20 million dong would be taxed. It made the same request for income from copyright, franchising, inheritance and gifts1. The finance ministry rejected raising the threshold, saying the existing level fits a Politburo resolution on restructuring the state budget and widening the revenue base1.
The finance and justice ministries said Vietnam's fixed 10 percent rate was "too low compared with other countries"1. The article listed rates elsewhere:
- the United States applies an initial 25 percent withholding, with the rest settled under a progressive scale topping out at 37 percent1
- Romania 25 percent1
- Poland 10 percent1
- Italy 6 percent1
- Greece 10 percent on winnings from lotteries, games of chance and football betting1
Canada does not tax lottery winners1.
Lottery payouts in Vietnam run into tens of trillions of dong a year.
What it means for players
The 10 percent rate and the 10 million dong threshold remain the rules in force; the progressive proposal was a draft and the threshold increase was rejected1. For anyone collecting a prize in Vietnam, tax is calculated per win on the amount above 10 million dong, not on the full amount, and the same definition covers lottery prizes, promotions and legal betting or contest winnings1. How a progressive scale would apply, and at what levels, has not been reported.
What happens next
The draft amendment was put forward in 2023. Whether the progressive proposal advanced, was revised or dropped has not been reported1.
For background on how prizes are treated, see Tax on Gambling Winnings in Vietnam, Tax on Lucky Draw, Raffle and Promotion Prizes in Asia and Tax on Gambling Winnings in Asia Compared. Related guides cover casino winnings, sports betting winnings and professional gamblers, alongside gambling laws in Asia and whether you can gamble in Vietnam.
