Did you know that you will not receive the entire jackpot amount? So according to regulations, how is the lottery tax calculated? How much tax do you pay on lottery winnings??

Let’s find out the details in the following article.

What taxes must be paid on lottery winnings?

According to state regulations, the type of tax that must be paid on lottery winnings is personal income tax (PIT). This tax is clearly defined in the lottery business activities.

Article 15, Circular 111/2013/TT-BTC stipulates that players who win lottery prizes worth more than 10 million VND must pay PIT. This tax will be calculated based on the prize amount.

Do you have to pay tax on winning the lottery? — When winning the jackpot, tax must be paid
In addition, there are some cases of winning the jackpot that need clarification:

If you win multiple prizes with a total prize amount greater than 10 million VND (for example, 10 million 100 thousand, 12 million…) then you do not need to pay personal income tax.

The case of having to pay PIT only applies to one prize.

If a player wins two prizes at the same time on the same lottery ticket, there will be different regulations.

If the total prize money from the two prizes on one lottery ticket exceeds 10 million VND, the player still has to pay PIT.

In cases where multiple people win a prize with a total prize amount greater than the regulations, the PIT will be equally divided among the two people.

You can refer to the prize structure of the lottery to know which prizes will definitely require tax payment.

Usually, when receiving the prize, the lottery company will automatically deduct this tax amount, so you do not need to go pay it to the state treasury yourself.

How much tax do you pay on lottery winnings?

So according to legal regulations, the type of tax to be paid when the prize exceeds 10 million VND is PIT.
[caption id="attachment_36186" align="aligncenter" width="1350"] When winning a prize over 10 million VND, tax must be paid
However, how much tax must be paid on lottery winnings? Applying the formula, the amount you have to pay is 10% of the amount exceeding 10 million.

**Tax amount to be paid = (Total prize – 10,000,000 VND) × 10%**

**Final amount received by the player = Prize money – Tax**

**Example:** If you win a prize worth 20 million VND, the tax amount to be paid will be 10% x 9 million VND, which is 900 thousand VND. The amount actually received = 19.1 million VND.

Similarly, using this formula, the actual winning amount can be calculated for other prize levels.

How much tax do you pay on a 1.5 billion lottery win?

According to the formula above, you can easily calculate how much tax you need to pay on winning 1.5 billion.

When one person wins a lottery ticket, they must pay personal income tax (TNCN) as follows: (1.5 billion – 10,000,000 VND) x 10% = 149,000,000. The amount you actually receive is: 1,351,000,000 VND.

In the case of 2 people winning one lottery ticket, the tax amount will be divided by 2: 149,000,000 : 2 = 74,500,000 VND

How is tax paid when winning the Jackpot?

Vietlott is one of the most popular forms of lottery in our country. The value of the Jackpot prize is many times higher than that of traditional lotteries, so the tax amount to be paid will also be higher.

According to regulations, when winning the Vietlott Jackpot, you also need to pay personal income tax because the prize amount will certainly be greater than 10 million VND.
[caption id="attachment_36185" align="aligncenter" width="1350"] Winning the jackpot also requires paying personal income tax

What taxes must be paid on winning the lottery? — When winning the jackpot, tax must be paid
In addition, there are some cases of winning the jackpot that need clarification:

If you win multiple prizes with a total prize amount greater than 10 million VND (for example, 10 million 100 thousand, 12 million…) then you do not need to pay personal income tax.

The case of having to pay PIT only applies to one prize.

If a player wins two prizes at the same time on the same lottery ticket, there will be different regulations.

If the total prize money from the two prizes on one lottery ticket exceeds 10 million VND, the player still has to pay PIT.

In cases where multiple people win a prize with a total prize amount greater than the regulations, the PIT will be equally divided among the two people.

You can refer to the prize structure of the lottery to know which prizes will definitely require tax payment.

Usually, when receiving the prize, the lottery company will automatically deduct this tax amount, so you do not need to go pay it to the state treasury yourself.

How much tax do you pay on lottery winnings?

So according to legal regulations, the type of tax to be paid when the prize exceeds 10 million VND is PIT.
[caption id="attachment_36186" align="aligncenter" width="1350"] When winning a prize over 10 million VND, tax must be paid
However, how much tax must be paid on lottery winnings? Applying the formula, the amount you have to pay is 10% of the amount exceeding 10 million.

**Tax amount to be paid = (Total prize – 10,000,000 VND) × 10%**

**Final amount received by the player = Prize money – Tax**

**Example:** If you win a prize worth 20 million VND, the tax amount to be paid will be 10% x 9 million VND, which is 900 thousand VND. The amount actually received = 19.1 million VND.

Similarly, using this formula, the actual winning amount can be calculated for other prize levels.

How much tax do you pay on a 1.5 billion lottery win?

According to the formula above, you can easily calculate how much tax you need to pay on winning 1.5 billion.

When one person wins a lottery ticket, they must pay personal income tax (TNCN) as follows: (1.5 billion – 10,000,000 VND) x 10% = 149,000,000. The amount you actually receive is: 1,351,000,000 VND.

In the case of 2 people winning one lottery ticket, the tax amount will be divided by 2: 149,000,000 : 2 = 74,500,000 VND

How is tax paid when winning the Jackpot?

Vietlott is one of the most popular forms of lottery in our country. The value of the Jackpot prize is many times higher than that of traditional lotteries, so the tax amount to be paid will also be higher.

According to regulations, when winning the Vietlott Jackpot, you also need to pay personal income tax because the prize amount will certainly be greater than 10 million VND.
[caption id="attachment_36185" align="aligncenter" width="1350"] Winning the jackpot also requires paying personal income tax

Since the prize amount can reach billions, tens of billions, or even hundreds of billions, the tax amount to be paid will also be adjusted.

This amount will be taxed according to the following rates:

For prize amounts under 5 billion VND, the personal income tax to be paid will be multiplied by a rate of 10%.
If the prize amount is over 5 billion VND, the personal income tax rate to be paid will be 20%.
For prizes greater than 10 billion VND, the personal income tax rate is 30%.

Notes when paying tax on lottery winnings

The above are some specific cases regarding lottery tax that players can refer to. However, in addition to the information above, players should also pay attention to some things about claiming prizes and paying taxes:

You need to pay the tax within 5 days after receiving the prize money.
Personal income tax can also be paid after the winning results are announced for 1 hour and the winner has come to claim the prize.
The tax amount will be calculated by the lottery company and transferred to the State Treasury as soon as the player comes to claim the prize.
When claiming the prize, the lottery company will also provide evidence that you have fulfilled your tax obligations as required.
The winning lottery ticket must comply with the regulations of the lottery company, and the winner needs to bring identification documents.
The winning lottery ticket must be intact, not torn or faded.
The lottery company will provide detailed guidance for players to complete the tax payment and prize claiming procedures.

Conclusion

The above are the regulations regarding lottery tax that players need to refer to. If you have understood how much tax to pay on lottery winnings and calculated the specific amount, then fulfill your obligations when “Lady Luck” visits you!