Circular No. 138/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance guiding the expenses of lottery enterprises as prescribed in the Government’s Decree No. 122/2017/ND-CP dated November 13, 2017 on financial management and performance assessment of lottery enterprises, stock exchanges and Vietnam Securities Depository

THE MINISTRY OF FINANCE

Circular No. 138/2017/TT-BTC dated December 25, 2017 of the Ministry of Finance guiding the expenses of lottery enterprises as prescribed in the Government’s Decree No. 122/2017/ND-CP dated November 13, 2017 on financial management and performance assessment of lottery enterprises, stock exchanges and Vietnam Securities Depository

Pursuant to the Law on Corporate Income Tax No. 14/2008/QH12 dated June 03, 2008, and the Law No. 32/2013/QH13 dated June 19, 2013 on amendments to the Law on Corporate Income Tax;

Pursuant to the Government’s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business and the Government’s Decree No. 78/2012/ND-CP dated October 05, 2012 on amendments to the Government’s Decree No. 30/2007/ND-CP dated March 01, 2007 on lottery business;

Pursuant to the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investments and utilization and management of capital and assets of enterprises;

Pursuant to the Government’s Decree No. 122/2017/ND-CP dated November 13, 2017 on financial management and performance assessment of lottery enterprises, stock exchanges and Vietnam Securities Depository;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining Functions, Tasks, Powers and Organizational Structure of Ministry of Finance;

At the request of Director of Department of Banking and Financial Institutions;

The Minister of Finance promulgates a Circular to provide guidelines for expenses of lottery enterprises as prescribed in the Government’s Decree No. 122/2017/ND-CP dated November 13, 2017 on financial management and performance assessment of lottery enterprises, stock exchanges and Vietnam Securities Depository.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular provides guidelines for expenses of lottery enterprises as prescribed in the Government’s Decree No. 122/2017/ND-CP dated November 13, 2017 on financial management and performance assessment of lottery enterprises, stock exchanges and Vietnam Securities Depository (hereinafter referred to as "Decree No. 122/2017/ND-CP).

Article 2. Subject of application

1.Lottery enterprises, including single-member limited liability companies that are duly incorporated by People s Committees of provinces or central-affiliated cities and Vietnam Lottery One-member limited liability Company (hereinafter referred to as “Vietlott”).

2.Agencies representing the state capital owner in lottery enterprises.

3.Other organizations and individuals involved in the financial management of lottery enterprises.

Chapter II

EXPENSES OF LOTTERY ENTERPRISES

Article 3. Agent commissions

1.Every lottery enterprise must pay agent commissions to its agents as regulated in Clause 2 Article 5 of the Decree No. 122/2017/ND-CP.

2.The lottery enterprise shall decide the agent commission rate provided that it shall not exceed 15% of its revenue from licensed lottery operations, including VAT and special excise duty.

Article 4. Authorization fees paid to lottery agents

1.Every lottery enterprise must pay fees to its agents authorized to cash winning lottery tickets as regulated in Clause 3 Article 5 of the Decree No. 122/2017/ND-CP.

2.The authorization fee paid to an authorized agent shall not exceed 0.2% of the total prize amount it has paid to the winner.

Article 5. Contributions towards preventing illegal numbers game and issuance of fake lottery tickets

1.Based on the reality, every lottery enterprise shall request the agency representing the state capital owner to consider giving approval for the contributions towards preventing illegal numbers game and issuance of fake lottery tickets according to the payment principle specified in Clause 5 Article 5 of the Decree No. 122/2017/ND-CP. Contributions shall not exceed the maximum amounts specified in Clause 2, Clause 3 and total amount of contributions specified in Clause 4 of this Article.

2.The maximum contribution to the case where the sentence has been pronounced by the People’s Court shall be VND 50 million/case.

3.The maximum contribution to the case where the decision on imposition of administrative penalty and the receipt for fine payment have been made shall equal 50% of the fine for administrative violation but not exceed VND 15 million/case.

4.Total amount of contributions towards preventing illegal numbers game and issuance of fake lottery tickets prescribed in Clause 2 and Clause 3 of this Article in a fiscal year shall not:

a) Exceed 1% of the lottery enterprise’s revenue from licensed lottery operations, including VAT and special excise duty, if it is located in the northern or central region;

b) Exceed 0.1% of the lottery enterprise’s revenue from licensed lottery operations, including VAT and special excise duty, if it is located in the southern region or it is Vietlott.

Article 6. Contributions towards maintaining operation of the Regional Lottery Council

1.Lottery enterprises and the Regional Lottery Council shall make contributions to and manage amounts contributed to the Regional Lottery Council in accordance with regulations in Clause 9 Article 5 of the Decree No. 122/2017/ND-CP.

2.The contribution made by every lottery enterprise shall be regulated by the Regional Lottery Council under the agreement with each Regional Lottery Council provided that the total contribution made to a Regional Lottery Council shall not exceed VND 60 million per year (i.e. VND 05 million/month). This contribution shall exclude prize expenses, drawing cost and costs of printing lottery tickets the Regional Lottery Council that launches traditional lottery products under the mechanism for cooperation in lottery issuance.

Chapter III

RESPONSIBILITY OF RELEVANT AUTHORITIES

Article 7. Responsibility of lottery enterprises

1.Comply with regulations on limits on expenses of lottery enterprises as regulated in this Circular and relevant laws.

2.Have the supervision of competent authorities in accordance with applicable laws.

Article 8. Responsibilities of the Provincial Departments of Finance

1.To cooperate with relevant authorities in providing advice for Provincial People’s Committees for supervising lottery enterprises complying with regulations of the Decree No. 122/2017/ND-CP, regulations herein and relevant laws.

2.To provide advice for Provincial People’s Committees about giving approval for contributions towards preventing illegal numbers game and issuance of fake lottery tickets in accordance with regulations of the Decree No. 122/2017/ND-CP, regulations herein and relevant laws.

Chapter IV

IMPLEMENTION ORGANIZATION

Article 9. Implementation organization

1.This Circular comes into force from February 10, 2018 and applies from the fiscal year 2018.

2.The Circular No. 01/2014/TT-BTC dated January 02, 2014 by the Ministry of Finance providing guidelines for financial management of lottery enterprises is abrogated.

3.Any difficulties arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for consideration./.

For the Minister

The Deputy Minister

Tran Van Hieu