To: Provincial/Municipal Tax Departments

The Finance Ministry has received requests for the guidance on taxable irregular income. On this issue, the Finance Ministry hereby provides the following opinions:

The Finance Ministry’s Circular No. 81/2004/TT-BTC on August 13, 2004, guiding the implementation of the Government’s Decree No. 147/2004/ND-CP of July 23, 2004, detailing the implementation of the Ordinance on Income Tax on High-Income Earners, stipulates that taxable irregular incomes include lottery prizes in any form, including sale promotion prizes. In order to detail the guidance on incomes from sale promotion prizes, the Finance Ministry issued Official Letter No. 27 TC/TCT on January 4, 2005, under which incomes from prizes mentioned the said Official Letter No. 27TC/TCT shall be taxed from the effective date of Circular No. 81/2004/TT-BTC of August 13, 2004 (September 12, 2004).

For irregular incomes from promotion prizes thanks to goods purchase prescribed in Item 2.2.6, Point 2, Section I of the Finance Ministry’s Circular No. 05/2002/TT-BTC of January 17, 2002, if they arose before the effective date of Circular No. 81/2004/TT-BTC of August 13, 2004, and the personal income tax was already withheld, they shall not be re-finalized; if the personal income tax was not withheld yet, it shall not be retrospectively collected.

The Finance Ministry hereby notifies provincial/municipal Tax Departments thereof for compliance.

DEPUTY GENERAL DIRECTOR OF TAXATION




Nguyen Thi Cuc

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