Withholding Tax on Winnings in Asia

What withholding tax on winnings means

Withholding tax is tax taken out of your prize at the moment it is paid, rather than you receiving the full amount and settling up with the tax office later. The lottery operator, casino or gaming platform acts as the withholding agent: it calculates the tax, hands you the net amount, and passes the tax to the government. In many countries in Asia this is the whole story. The deduction is final, you get a statement showing what was taken, and you do not need to do anything else.

The alternative is a system where winnings are simply one more kind of taxable income. South Korea works this way for most gambling receipts: prizes from lotteries, raffles and slot machines, and refunds from horse racing, cycling, boat racing and sports promotion betting tickets, all fall under "other income" in the Income Tax Act, taxed after deducting expenses⁶. Japan similarly treats sweepstakes and raffle prizes as one-time income on which you may need to file a final tax return⁷. In both countries, big payouts are still withheld at source, so in practice you often see the deduction before you are paid.

The rates and thresholds vary enormously, which is why this page goes country by country. A quick sample: South Korea withholds 22% on lottery winnings above KRW 2,000,000 and up to KRW 300,000,000, rising to 33% above that, while wins of KRW 2,000,000 or less are tax-free⁵. Thailand takes a much lighter touch, withholding just 1% of the prize money on charity lottery claims⁸. For the wider picture of how each jurisdiction treats prizes, see tax on gambling winnings in Asia.

China: 20% on incidental income and the CNY 10,000 exemption

China classifies lottery winnings as "incidental income" (偶然所得), taxed at a flat 20% on the full amount of each winning, with no deduction for the cost of the ticket¹. The exemption is generous at the bottom end: a single winning of CNY 10,000 or less is temporarily exempt from individual income tax, a preferential policy that has been in place since the 1990s and was expressly continued by a four-ministry announcement in August 2024¹.

The word "single" does a lot of work here. For computer lottery games, all prizes the same person wins in the same draw of the same game count as one single winning, so they are added together before the exemption test is applied¹⁰. For instant tickets (scratch cards), each ticket's prize is one single win on its own¹⁰. So if you win CNY 6,000 twice in the same draw of the same game, that is one winning of CNY 12,000 and the full amount is taxed; two scratch cards of CNY 6,000 each are two separate wins, both exempt.

The lottery institution does all the paperwork. It withholds the tax and files on your behalf: a tax-exempt filing for computer lottery wins over CNY 3,000 up to CNY 10,000, and a full tax filing for wins over CNY 10,000 from both computer and instant lottery¹. For computer lottery payouts over CNY 3,000, your real-name identity and redemption details must be registered, and you are expected to cooperate with that¹⁰. A worked example from the Guangdong tax bureau: on a CNY 100,000 instant lottery win, the institution withholds CNY 20,000 and handles the tax filing for you¹⁰. For more on how a "single win" is defined, see how taxable winnings are calculated.

Vietnam: 10% on winnings above the tax-free threshold

Vietnam taxes prize winnings under its personal income tax rules, and the system changed recently. Under the guidance in Circular 111/2013/TT-BTC, taxable income was the portion of a prize exceeding VND 10,000,000 per winning, taxed at a flat 10% under the "full schedule" (Biểu thuế toàn phần)¹². The Personal Income Tax Law passed in December 2025 raises that threshold: from July 1, 2026, only the portion of a prize above VND 20,000,000 is taxable, still at 10%².

The formula is simple: tax payable equals taxable income multiplied by 10%¹². On a VND 50,000,000 prize under the new threshold, the taxable portion is VND 30,000,000 and the tax is VND 3,000,000, leaving you VND 47,000,000. The threshold applies per winning, regardless of how many times the prize money is actually handed over¹².

Two practical points from Vietnamese guidance. First, if one prize has multiple winners, the taxable income is divided among them, but the winners must present legal proof of the split; otherwise the whole prize is counted as one individual's income, and multiple prizes in one game are taxed on their total value¹². Second, if the prize is in goods rather than cash, the tax can be handled by giving you goods of lower value after the tax deduction, or by selling the goods and paying you the cash remainder after withholding¹³. Vietlott's own prize claim rules confirm that winners must fully meet their tax obligations under tax law before the prize is released¹⁴. For prizes that are not cash, see tax on non-cash prizes.

India: 30% TDS on net winnings at withdrawal

India runs the most distinctive system in the region. Since the Finance Act 2023, all real money gaming apps must deduct 30% TDS (tax deducted at source) on your net winnings, either at the moment you withdraw or on March 31, the end of the financial year³. The key word is "net": the tax applies to your winnings minus your deposits, not to every rupee you cash out.

The platform's own examples show how it works. Deposit INR 2,000 and withdraw INR 3,000: net winnings are INR 1,000, tax is INR 300, and you receive INR 2,700³. Withdraw exactly what you deposited (INR 2,000 against INR 2,000): net winnings are zero, no tax, full payout³. Over a longer period, if total withdrawals are INR 9,000 against total deposits of INR 8,000, total net winnings are INR 1,000, but if INR 300 was already deducted on an earlier withdrawal, no further tax is taken³. If total withdrawals are less than total deposits, net winnings are negative and nothing is deducted³.

The year-end mechanic matters. On March 31, the platform looks at your net winnings for the whole year; tax already deducted on withdrawals is not deducted again on the same winnings³. If your net winnings are negative at year end, you may be eligible for a refund of TDS, which you claim when filing your tax return; the platform itself cannot refund the tax directly, as it has already gone to the income tax department³. All calculations reset on April 1, with the March 31 balance taxed as a withdrawal and the remainder carried forward³. You can check your tax calculation on the platform's withdrawal page before you confirm³. For the timing question in more depth, see when are winnings taxed.

Philippines: 20% final tax deducted before PCSO pays

The Philippines takes a flat, final approach. All PCSO lotto prizes above PHP 10,000 are paid net of a 20% final tax under the TRAIN Law (RA 10963): prizes above PHP 10,000 up to PHP 60,000 are paid in cash after the deduction, and larger prizes are paid by check, again net⁴. The same 20% final rate applies to prizes and winnings from sources within the Philippines generally, with small prizes of PHP 10,000 or less excluded¹⁶. Independent lottery guides confirm the same threshold and rate for PCSO claims¹⁷.

The word "final" is the important part: the deduction settles your tax obligation on that prize, and you do not declare it again. PAGCOR's regulatory manuals extend the pattern to casinos and poker rooms: a 20% withholding tax is deducted from individual jackpot payouts exceeding PHP 10,000¹⁸, and online poker operators apply the same 20% to individual payouts above PHP 10,000¹⁹. PAGCOR also passes 5% of winnings to the BIR as franchise tax at the operator level, which is separate from what is withheld from players²⁰. For the casino side in detail, see tax on casino winnings.

Other places, briefly

The rest of the region splits into three camps: no tax on winnings, light withholding, or self-assessment.

No tax on the winner. These places do not tax the winner:

Light withholding. Thailand withholds 1% of the prize money at source on charity lottery claims⁸, and government lottery prizes also carry stamp duty at 1 baht for every 200 baht or fraction of 200 baht of prize money²⁴. Taiwan's Unified Invoice lottery withholds 20% income tax from winners of Third Prize or above, taken by the prize-issuing unit²⁵.

Self-assessment with withholding on big payouts. Japan treats most racing and lottery receipts as one-time income: public racing payouts are calculated as the refund amount minus the cost of winning tickets, minus a special deduction of up to JPY 500,000, and you may need a final tax return²⁶. Keirin warns that winning ticket refunds can be taxable and may require a final return²⁷. South Korea withholds other income tax of 20% plus resident tax (10% of that) before paying refunds when the payout rate is 100 times or more, or the refund on a single bet is KRW 2,000,000 or more; smaller refunds are untaxed or taxed through self-assessment²⁸. Macau does not tax player winnings at all; its special gaming tax is paid by the concessionaire in twelfths to the Macau finance office²⁹, and its casino regulatory manual provides only for a final tax on winnings from electronic gaming machines³⁰. Winnings by persons banned from gaming vest in the Macau SAR³¹. For the racing picture, see tax on horse racing and pari-mutuel winnings.

Who withholds the tax and when you are paid

The withholding agent is always the party handing over the money, and the deduction happens at the moment of payment.

• China: lottery institutions withhold the tax and file on the winner's behalf, including the exempt filings described above¹.
• Vietnam: the taxable moment is when the paying organization or individual pays the prize to the winner². Vietlott's claim process requires tax obligations to be met before payment¹⁵.
• India: the gaming platform deducts at withdrawal or on March 31³.
• Philippines: PCSO pays prizes above PHP 10,000 already net of the 20% final tax, in cash up to PHP 60,000 and by check above that⁴. Mid-tier prize claims at the PCSO office are processed in about 50 minutes⁴.
• South Korea: the payout body withholds before paying large refunds²⁸.
• Japan: for most winnings there is no withholding at payout; the obligation falls on you at tax return time⁷.

What you receive varies. In China the institution files for you and registers your identity¹⁰. In India the platform shows the tax calculation on the withdrawal page and the deducted tax goes to the income tax department against your credit³. In the Philippines the check or cash you receive is simply net⁴. Keep whatever statement or receipt the payer gives you: it is your proof if your home country asks about the money, a topic covered in proving the source of gambling winnings.

Residents and non-residents: does the same rule apply

In most of the jurisdictions above, withholding at source does not distinguish between residents and visitors, because the deduction happens at the payout counter regardless of who you are. Vietnam's guidance states that its calculation method applies to both resident individuals and non-resident individuals¹², and from July 2026 resident individuals pay 10% on the taxable portion of prize income².

The clearest answer comes from Vietnam: the 10% prize tax calculation applies to both resident individuals and non-resident individuals, so the same rule follows you either way¹⁶. The United States, by contrast, has long had the reverse pattern: casino operators there withhold from non-resident aliens only on large wins from slot machines, keno and other high-odds games, not from table game winnings³². If you are a foreigner claiming a large prize in Asia, expect the local resident rate at the counter, and check whether your home country credits the withheld tax, a question taken up in double taxation of gambling winnings and winnings tax for tourists.

What the tax rules do not cover

Several things sit outside these withholding rules, and it helps to know where the boundary lies.

Winnings that are simply not taxed. Singapore treats betting and lottery winnings as windfalls, not income, so they are not taxable. Hong Kong does not pursue lucky draw winners for betting duty²¹. Malaysia's sweep winnings are not taxable²². Japan exempts toto sports promotion refunds from income tax²³.

Casino winnings in Vietnam. From July 2026, Vietnamese law taxes winnings from betting but exempts casino winnings², a distinction that matters if you play at Vietnamese casinos.

The operator's own taxes. The special gaming tax in Macau²⁹, PAGCOR's franchise tax in the Philippines²⁰ and betting duties elsewhere are paid by operators, not deducted from your prize. How those operator taxes can indirectly reach players is covered in how gambling duties affect players.

Income the tax law reaches anyway. South Korea's Income Tax Act counts gains from participating in acts regulated by the gambling regulation law as other income, whether the activity was legal or not⁶. Japan's deposit-linked sweepstakes prizes face a separate 20.315% withholding (income and reconstruction special income tax of 15.315% plus 5% local tax) under separation taxation, with no final return possible⁷. And if you gamble often enough that it looks like a business, different rules can apply altogether, as explained in professional gambler tax.

If tax was withheld and you think too much was taken, the routes to a refund or credit are covered in getting back tax withheld on winnings.