Circular No. 100/1999/TT-BTC guides the declaration and payment of corporate income tax for lottery ticket agents and the use of invoices and documents in lottery business activities.

 CIRCULAR

Guidelines for declaring and paying corporate income tax for lottery ticket agents and the use of invoices and vouchers in lottery ticket business activities

regarding lottery agents and the use of invoices,

documents for lottery sales activities

Pursuant to the Value Added Tax Law (VAT), Corporate Income Tax Law (CIT), and guiding documents implementing the VAT Law and CIT Law currently in force;

To implement the declaration and payment of CIT for lottery ticket agency sales activities and the issuance, management, and use of invoices for lottery ticket business activities in accordance with the nature of such business activities, the Ministry of Finance hereby provides guidance as follows:

I. REGARDING THE DECLARATION AND PAYMENT OF CORPORATE INCOME TAX FOR LOTTERY TICKET AGENCIES

1. Lottery ticket agencies that are subject to corporate income tax on agency commissions from selling lottery tickets include: general agencies, wholesale agencies, retail agencies, except for the following individuals who are exempt from corporate income tax according to the guidelines at point 6b, Section I, Part D of Circular No. 99/1998/TT-BTC dated July 14, 1998 of the Ministry of Finance guiding the implementation of Decree No. 30/1998/NĐ-CP dated May 13, 1998 of the Government detailing the implementation of the Corporate Income Tax Law:

Individuals directly operating retail lottery ticket agencies who are retired officials, war invalids, families of revolutionary martyrs, families with meritorious service to the revolution, those unable to work, elderly and orphaned children without support, and those with average monthly income during the year (income determined by revenue minus expenses) below the minimum wage set by the State for civil servants shall be exempt from corporate income tax.

The Provincial Tax Department has the responsibility to coordinate with the Lottery Ticket Company in the locality to determine the entities eligible for exemption from corporate income tax as mentioned in this point.

2. Determining corporate income tax payable by lottery ticket agencies

Corporate Income Tax Payable = Taxable Income x Tax Rate (32%)

For lottery ticket agencies that have not established accounting books and cannot determine business income to calculate corporate income tax payable according to the above regulations, the corporate income tax payable will be calculated based on a fixed rate of 5% of revenue.

Revenue serving as the basis for calculating corporate income tax for lottery ticket agencies is the total commission from selling lottery tickets received before deducting any costs.

Example: A General Agency selling lottery tickets had total revenue (Commission) from selling lottery tickets in the first quarter of 1999 amounting to 100 billion VND, then the corporate income tax payable based on the fixed rate would be: 100 billion VND x 5% = 5 billion VND.

3. Declaration and Payment of Corporate Income Tax:

The Lottery Ticket Company is responsible for withholding the corporate income tax payable by lottery ticket agencies that are required to pay corporate income tax before settling the commission for selling lottery tickets to these agencies, and submitting it to the state budget on behalf of the agencies.

The Lottery Ticket Company receives a fee of 0.8% of the actual tax collected and submitted to the state budget when performing the withholding and submission of corporate income tax for lottery ticket agencies. This fee is deducted from the tax collected before submitting it to the state budget.

Example: During a period, the company collects 300 billion VND in corporate income tax from agencies.

The company is entitled to retain 0.8% = 300 billion VND x 0.8% = 2.4 billion VND

The remaining amount to be paid is 300 billion VND - 2.4 billion VND = 297.6 billion VND

The fee retained by the company can be used to cover costs related to tax collection and submission, and to reward departments and individuals involved in this work; the level of expenditure is determined by the company.

Quarterly, the Lottery Ticket Company is responsible for declaring the corporate income tax withheld from agencies to the provincial tax department along with the time specified for submitting the company's corporate income tax declaration form according to the attached declaration form. The tax authority is responsible for reviewing and notifying the company of the corporate income tax payable. The Provincial Tax Department uses the corporate income tax payment notification form to notify the Lottery Ticket Company to submit corporate income tax for lottery ticket agency commissions.

Lottery Ticket Companies are not allowed to include the amount of corporate income tax paid on behalf of lottery ticket agencies in their deductible expenses for calculating taxable income for corporate income tax.

II. REGARDING THE USE OF INVOICES AND VOUCHERS:

1. Lottery tickets (including traditional tickets, instant result tickets, lotto, computerized tickets, etc.) designed, printed, and issued by Lottery Ticket Companies are considered special types of vouchers. The price printed on lottery tickets is inclusive of VAT. Therefore, Lottery Ticket Companies must register and declare to the Provincial Tax Department managing tax collection regarding the printing and issuance of lottery tickets according to the following provisions:

- Register the printing factory for lottery tickets. In cases where the Lottery Ticket Company operates computerized lottery games, they must also register the number and type of machines used to print "tickets" with the Tax Department.

- Declare the type of ticket, quantity printed, quantity issued, actual consumption, and quantity destroyed in each period.

2. Invoices and vouchers applicable to companies engaged in lottery ticket sales and the basis for determining revenue for VAT calculation:

- Each time issuing and delivering lottery tickets to branches, transfer stations, general agencies, and agents (collectively referred to as agents) for sale, the Lottery Ticket Company must issue an "internal dispatch and transportation voucher" (Form No.: 03-VT issued together with Decision No. 1141/QĐ-CĐKT dated November 1, 1995 of the Ministry of Finance) and hand it over to the agent.

- When selling lottery tickets, the Lottery Ticket Company and direct sellers do not need to issue sales invoices to customers. At the end of each ticket issuance (daily or every 3-5 days as stipulated), the Lottery Ticket Company must prepare a detailed list of lottery tickets sold for each issuance and consolidate these lists monthly according to Form No. 05/GTGT "Retail Sales List" issued together with Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance guiding the implementation of Decree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing the implementation of the Value Added Tax Law, serving as the basis for determining revenue and VAT payable by the company.

The lottery ticket sales list must clearly record the type of ticket, quantity sold (consumption), unit price (price on the ticket), revenue from ticket sales for each issuance, and transfer this information to the accounting department for bookkeeping.

- Once a month, within the deadline for declaring and paying VAT, the Lottery Ticket Company shall be responsible for summarizing the ticket sales revenue for the month to determine the taxable turnover and the output VAT.

Output VAT = Taxable turnover x 20%

Based on the determination of the output VAT and the deductible input VAT, the Lottery Ticket Company shall prepare the VAT declaration form No. 01/GTGT issued together with Circular No. 89/1998/TT-BTC mentioned above, along with the list of lottery tickets sold according to each issuance of lottery tickets in the month, to be submitted to the Provincial or Municipal Tax Department directly managing tax collection.

III. IMPLEMENTATION:

This Circular takes effect from September 1, 1999.

In the course of implementation, if there are any difficulties, the Provincial or Municipal Tax Departments, Finance and Price Departments, and Lottery Ticket Companies are requested to promptly report to the Ministry of Finance for timely guidance on handling.

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

VAT RETURN SUBMITTED ON BEHALF OF LOTTERY TICKET AGENCY
(for the month...year...)

- Name of Lottery Ticket Company:...Tax Code:...

- Address of the Company's Head Office:...

Unit of measurement:

Amount of tax payable: (in words)...

....................................................................................................

The figures above are guaranteed to be accurate and truthful. If the tax authority finds discrepancies upon inspection, the entity will be subject to penalties under the Law on Corporate Income Tax.

Place to submit the return:

- Tax Authority

- Address:

The Tax Authority received the declaration:

- Date received:

- Receiver: (Signature and full name)