| MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness --------- |
| No. 42/2009/TT-BTC | Hanoi, March 09, 2009 |
CIRCULAR
GUIDING WITHHOLDING PERSONAL INCOME TAX OF LOTTERIES' AGENTS AND LOTTERY WINNERS
Pursuant to the Law on Personal Income Tax dated 21 November 2007 and its implementing guidelines; Pursuant to the Law on Management of Tax dated 29 November 2006 and its implementing guidelines;
Pursuant to Decree 118/2008/ND-CP of the Government dated 27 November 2008 on functions, duties, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby provides the following guidelines on tax registration, withholding tax, and tax finalization and declaration of personal income tax of lotteries' agents, and withholding personal income tax on income payable to lottery winners:
Article 1. Applicable scope:
1. Individuals who directly sign an agency contract with a lotteries company and which have taxable income. Taxable income from agency activities comprises income being agent's commission, bonuses in all forms, and other subsidies and payment receivable from the agent's principal.
2. Individuals who win lotteries.
Article 2. Tax registration
1. Individuals acting as lotteries' agents must conduct tax registration pursuant to the Law on Management of Tax and its implementing guidelines.
2. An application file for tax registration shall comprise:
- Declaration of tax registration on standard form 3 DK-TCT issued with Circular 85/2007/TT-BTC of the Ministry of Finance dated 18 July 2007 implementing the Law on Management of Tax regarding tax registration.
- Copy people's identity card or passport.
- Business registration certificate or agency contract signed with a lotteries company.
3. Location for lodging application files for tax registration: Individuals acting as lotteries' agents shall directly lodge their files with the Tax Department in the district where they reside.
Article 3. Withholding tax on income payable to agents
- Lotteries companies paying income to individuals who have directly signed an agency contract with such company shall be responsible to withhold personal income tax from income payable to agents in accordance with the following scale:
Unit: 1,000 VND
| Monthly income of agent | Provisional percentage to be collected on monthly income payable to the agent |
| Up to 4,000 | 0% |
| Above 4,000 | 5% |
- Lotteries companies shall be responsible to issue certificates of tax withheld on request from their agents.
- An agent's income in accordance with the above tariff means the agent's income without deductions for dependants, or for compulsory insurance premiums or for contributions to charitable funds and so forth.
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