Vietnam has proposed a 10% tax on casino winnings over VND 10m (US $475), but a tax official says such a plan would discourage foreigners from visiting the country’s licensed gaming establishments. Residents in Vietnam have to pay tax on their worldwide income at progressive tax rates. Therefore, salary earned from working abroad is taxable in Vietnam. Non-residents in Vietnam have to pay tax on their Vietnam-sourced income only, at the flat rate of 20 percent. Salary earned from working abroad is not taxed in Vietnam. The effective tax on the casino’s gross gaming revenue (GGR) is based on a 38.7 percent tax rate on casino win, plus a 33.3 percent “privilege tax” that is to fund pensions for first responders. Vietnam’s casinos will soon be required to adopt new measures that ensure all transactions and winnings are properly recorded and stored for security and tax collection purposes, local media reports. The Ministry of Finance Decree No. 3 is set to take effect on February 12, 2018, with the aim of ensuring that casinos are run […] Employment income is taxed on a progressive tax rates basis. Non-employment income is taxed at a variety of different rates. Non-residents are subject to PIT at a flat tax rate on the income received as a result of working in Vietnam/on Vietnam-related income in the tax year, and at various other rates on their non-employment income. The gaming industry in Vietnam, including lotteries, slot machines, casinos and other betting, is expected to be a solid tax contributor if the activities are legalized and tightly controlled. The largest gambling city in Vietnam is Ho Chi Minh City with 11 gambling facilities, 13 tables games, 290 gaming, slot, and video poker machines. The largest casino in the entire country of Vietnam is Corona Resort and Casino which is located in Phú Quốc. Corona Resort and Casino has 100 table games, 1,000 gaming and video poker machines. The issuance of these Decrees is the Government’s attempt to retain tax revenue resulting from casino activities and limit foreign currency loss to other neighboring countries. According to a survey, Vietnam loses about USD800 million in tax revenue annually from gamblers who cross the border to Cambodia. Decree No. 03/2017/ND-CP on casino business operations The Government has recently issued Decree No. 03/2017/ND-CP on casino business operations dated 16 January 2017 (“Decree 03”). Decree 03 will come into force on 15 March 2017. Casino operations include the operation of gambling machines and gaming tables. A company must first obtain an Investment Registration Certificate […] Thuan is an experienced tax and accounting adviser with over 15 years of work experience. He has advised on the tax implications of large construction and engineering projects, major acquisitions, and on several highly publicized real estate developments in Vietnam, Cambodia, Laos, and Myanmar.
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