Circular 39/2022/TT-BTC guiding Decree 121/2021/ND-CP on the business of prize-winning video games for foreigners

CIRCULAR

Guiding a number of articles of the Government’s Decree No. 121/2021/ND-CP of December 27, 2021, providing the business of prize-winning video games for foreigners^[1]

Pursuant to the Government’s Decree No. 121/2021/ND-CP of December 27, 2021, providing the business of prize-winning video games for foreigners;

Pursuant to the Government’s Decree No. 87/2017/ND-CP of July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

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

The Minister of Finance promulgates the Circular guiding a number of articles of the Government’s Decree No. 121/2021/ND-CP of December 27, 2021, providing the business of prize-winning video games for foreigners.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular guides the provisions on management of tokens; licensing charges; financial regime; discount; and accounting and reporting regimes in Clause 2 of Article 12, Article 27, Clause 2 of Article 35, Clause 4 of Article 36, and Article 37, of the Government’s Decree No. 121/2021/ND-CP of December 27, 2021, providing the business of prize-winning video games for foreigners (below referred to as Decree No. 121/2021/ND-CP).

Article 2. Subjects of application

1. Enterprises engaged in the business of prize-winning video games for foreigners.

2. Persons permitted to play at and persons permitted to enter and leave prize-winning video game business facilities serving foreigners in accordance with law.

3. State management agencies with the functions related to the licensing, management, supervision, examination and inspection of the business of prize-winning video games for foreigners;

4. Other organizations and individuals involved in the business of prize-winning video games for foreigners.

Chapter II

SPECIFIC PROVISIONS

Article 3. Management of tokens

1. At least 5 working days before putting tokens into trading, an enterprise shall notify in writing the form, model, quantity and type of such tokens to the provincial-level Department of Finance and the local tax office directly managing the enterprise for monitoring and management.

2. An enterprise may suspend the use of tokens to meet management requirements. At least 5 working days before suspending the use of tokens, the enterprise shall notify such in writing to the provincial-level Department of Finance and the local tax office directly managing the enterprise for monitoring and management. A notice must clearly state the time of suspension, reason(s) for suspension and expected time of resumption of the use of tokens. In case of a change in the expected time of resumption of the use of tokens, the enterprise shall notify such in writing to the above agencies.

3. An enterprise shall keep a book for monitoring and management of tokens, which must contain the following basic details: 

a/ Form of tokens;

b/ Quantity and type of tokens the enterprise has purchased, re-exported or destroyed, detailed to par value and foreign currency, date of purchase, re-export or destruction, and name of the manufacturer or supplier (if any);

c/ Other details to meet management requirements of the enterprise.

Article 4. Management of cash and tokens at vaults, cashier counters and slot machines

1. Enterprises shall formulate and issue regulations on financial management and token management process, and organize the separate management of cash and tokens at vaults, cashier counters and slot machines.

2. Enterprises may only carry out exchange of cash for tokens for players before the players play and exchange of tokens for cash for players at cashier counters and shall make out exchange receipts according to the form provided in Appendix 01 to this Circular. The cashier section shall monitor the specific quantity of cash and tokens actually traded in a given period.

3. Enterprises shall prepare special-use boxes (bags) for storing cash and tokens. These boxes (bags) must be sealed up before being brought out of vaults and immediately after being taken out of slot machines.

4. The breaking of seals of boxes (bags) and inventory and count of transactions at cashier counters shall be carried out at a certain time as stated in enterprises’ regulations on financial management and token management process and certified according to the set forms, including token output note, token input note, revenue sum-up note and cash settlement note provided in Appendices 02, 03, 04 and 05 to this Circular.

Article 5. Licensing charges

1. The appraisal charge for grant or extension of an enterprise’s business eligibility certificate is VND 150,000,000.

2. The appraisal charge for re-grant or modification of an enterprise’s business eligibility certificate is VND 5,000,000.

3. The appraisal charges for grant, re-grant, modification and extension of business eligibility certificates specified in Clauses 1 and 2 of this Article constitute revenues of the central budget.

4. After carrying out appraisal and identifying that an enterprise satisfies the conditions for the grant, re-grant, modification or extension of its business eligibility certificate, the Ministry of Finance shall notify such to the enterprise for payment of the appraisal charge in accordance with law.

5. After receiving the Ministry of Finance’s notice, the enterprise shall pay the charge into the state budget according to the current state budget index under the Ministry of Finance’s Circular No. 328/2016/TT-BTC of December 26, 2016, guiding the collection and management of state budget revenues via the State Treasury, and replacing, amending or supplementing documents (if any), and send 1 (one) sheet of the receipt to the Ministry of Finance. The enterprise may be entitled to grant, re-grant, modification or extension of its business eligibility certificate only after paying the appraisal charge into the state budget.

Chapter III

FINANCIAL MANAGEMENT, ACCOUNTING, AUDITING AND REPORTING REGIMES

Article 6. Principles of accounting and management of revenues and expenses

1. Enterprises shall account revenues and expenses in conformity with accounting standards and the guidance in this Circular.

2. Enterprises engaged in the prize-winning video game business shall separately account revenue, expense and profit amounts related to this business activity and have these amounts separately monitored in their accounting books and financial statements. In case it is impossible to separately account revenue from the prize-winning video game business, all revenues shall be regarded as revenues from the prize-winning video game business and shall serve as a basis for excise tax calculation.

3. The determination of revenues, expenses and other incomes, and tax-related contents for the prize-winning video game business must comply with the tax laws.

Article 7. Revenues

  1. Revenues from the prize-winning video game business include:

a/ Revenue from the prize-winning video game business, which is the whole of the money amount collected from exchange of tokens for players and the money amount collected at slot machines minus the money amount refunded to players who get winnings or have not used up tokens.

b/ Revenue from financial activities and other incomes from the prize-winning video game business, which must comply with current accounting regulations.

2. Discounts given by enterprises engaged in the prize-winning video game business specified in Article 35 of Decree No. 121/2021/ND-CP are specified as follows:

a/ Eligible for discount are players who purchase tokens with the value of at least USD 50,000 per purchase.

b/ Enterprises are eligible for reduction of taxed revenues in accordance with the tax laws. The method of determination of reducible tax amounts must comply with the tax laws.

c/ Enterprises shall notify their discount policies to the tax offices directly managing them.

Article 8. Expenses

1. Expenses for the prize-winning video game business include all expenses for this business activity which are determined in accordance with law. In case expenses for the prize-winning video game business are also paid for other business operations of an enterprise, the enterprise shall distribute these expenses according to percentage (%) of its revenue from the prize-winning video game business to its total revenue.

2. Expenses for payment of winnings are money amounts actually paid by enterprises to the winning players who play slot machines according to the game rules and the tax laws.

Article 9. Accounting and auditing regimes

1. Enterprises shall implement the accounting regime in accordance with the Accounting Law and current regulations on accounting.

2. Annual financial statements of enterprises engaged in the prize-winning video game business must be audited by independent audit firms licensed to lawfully operate in Vietnam.

3. Enterprises shall retain their financial statements in accordance with the Accounting Law and amending, supplementing or replacing documents (if any). Particularly for the forms provided in Appendices 01, 02, 03, 04 and 05 to this Circular, the retention period must be at least 5 years to serve the examination and inspection by state management agencies.

Article 10. Reporting regime

1. For financial statements

a/ Enterprises engaged in the prize-winning video game business shall make the financial statements specified in Clause 2, Article 9 of this Circular and send them to the Ministry of Finance and provincial-level Departments of Finance and Tax Departments within 90 days from the last day of an annual accounting period;

b/ Within 120 days from the last day of an annual accounting period, enterprises engaged in the prize-winning video game business shall disclose their financial statements in accordance with law.

2. For reports on professional operations

a/ Every quarter or at the end of a year, an enterprise engaged in the prize-winning video game business shall make and send the following reports on professional operations:

- A report on the quantity and types of slot machines and kinds of games, made according to the form provided in Appendix 06 to this Circular;

- A report on purchase, use, re-export or destruction of devices of slot machines, made according to the form provided in Appendix 07 to this Circular;

- A report on situation of the prize-winning video game business, made according to the form provided in Appendix 08 to this Circular.

b/ Data cutoff periods

- For quarterly reports, the data cutoff period is counted from the 1^st of the first month of a reporting quarter through the last day of the last month of such quarter;

- For annual reports, the data cutoff period is counted from January 1 to December 31 of the reporting year.

c/ Time limit for sending reports and places of receiving reports

The reports on professional operations specified at Point a of this Clause shall be sent to the Ministry of Finance and provincial-level Departments of Finance, Departments of Culture, Sports and Tourism (or Departments of Culture and Sports) and Tax Departments within 15 days from the last day of an accounting period (quarter or year). At-law representatives of enterprises engaged in the prize-winning video game business shall take responsibility before law for the accuracy and truthfulness of these reports.

3. In addition to the reports mentioned in Clauses 1 and 2 of this Article, enterprises engaged in the prize-winning video game business shall make and send unscheduled reports to the Ministry of Finance to meet management requirements.

4. Methods of sending reports

a/ Hand-delivering paper reports;

b/ Sending paper reports by post;

c/ Sending reports via emails or specialized reporting information software;

d/ Other methods as prescribed by law.

Chapter IV

RESPONSIBILITIES OF ORGANIZATIONS

Article 11. Responsibilities of provincial-level Departments of Finance

To manage, supervise and examine, and assist provincial-level People’s Committees in managing, supervising and examining, prize-winning video game business activities in their localities in accordance with Decree No. 121/2021/ND-CP, this Circular and relevant regulations.

Article 12. Responsibilities of provincial-level Tax Departments

1. To coordinate with provincial-level Departments of Finance and related agencies in managing, supervising and examining prize-winning video game business activities in their localities in accordance with Decree No. 121/2021/ND-CP, this Circular and relevant regulations.

2. To manage, examine and inspect the performance of the obligation to pay taxes and charges by enterprises engaged in the prize-winning video game business in accordance with law.

Article 13. Responsibilities of enterprises engaged in the prize-winning video game business

1. To comply with Decree No. 121/2021/ND-CP, this Circular and relevant regulations.

2. To formulate and issue their regulations and processes on management of professional operations, ensuring transparency, honesty and compliance with regulations on the prize-winning video game business.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 14. Implementation provisions

1. This Circular takes effect on August 8, 2022.

2. This Circular replaces:

a/ The Ministry of Finance’s Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, providing the business of prize-winning video games for foreigners;

b/ The Ministry of Finance’s Circular No. 57/2017/TT-BTC of June 2, 2017, amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 11/2014/TT-BTC of January 17, 2014, guiding a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, providing the business of prize-winning video games for foreigners.

3. This Circular annuls Article 8 of the Ministry of Finance’s Circular No. 84/2020/TT-BTC of October 1, 2020, amending and supplementing regulations on the periodical reporting regime falling within the Minister of Finance’s competence in the field of finance and banking.

4. Any problems arising in the course of implementation of this Circular should be reported to the Ministry of Finance for consideration and settlement.-

For the Minister of Finance
Deputy Minister
NGUYEN DUC CHI

* The appendices to this Circular are not translated.