Circular No. 102/2017/TT-BTC guiding certain provisions stipulated in Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business

CIRCULAR

Guidelines for certain provisions stipulated in Decree No. 03/2017/NĐ-CP

dated January 16, 2017 of the Government on casino business

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Pursuant to Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on operating casinos;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Finance of Banks and Financial Institutions;

The Minister of Finance promulgates this Circular guiding certain provisions stipulated in Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business.

 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides certain provisions stipulated in Decree No. 03/2017/NĐ-CP dated January 16, 2017 of the Government on casino business (hereinafter referred to as Decree No. 03/2017/NĐ-CP).

Article 2. Applicability

1. Casino business enterprises.

2. Subjects permitted to play and subjects permitted to enter and exit casino business premises as prescribed in Decree No. 03/2017/NĐ-CP.

3. State management agencies with functions related to granting permits, managing, supervising, inspecting, auditing, and imposing administrative penalties in casino business activities.

4. Other organizations and individuals related to casino business activities.

Chapter II

ORGANIZATION OF CASINO BUSINESS ACTIVITIES

Article 3. Record books and electronic cards for controlling entry and exit of subjects at casino business premises

1. Enterprises must maintain record books or issue electronic cards to control all subjects permitted to enter and exit casino business premises as prescribed in Article 14 of Decree No. 03/2017/NĐ-CP. Record books may be maintained in the form of manual records or electronic information. In cases where enterprises implement control through issuing electronic cards, they must ensure that there is a consolidated report on controlling entry and exit of subjects at casino business premises including similar information as in the record book. Record books and electronic information (in case of issuance of electronic cards) must be retained for a minimum period of two years for inspection and audit purposes by state management agencies.

For enterprises permitted to pilot allowing Vietnamese citizens to play at casino business premises as prescribed in Article 12 of Decree No. 03/2017/NĐ-CP, the record books for Vietnamese citizens playing at casino business premises must be retained for a minimum period of five years to serve the purpose of summarizing and evaluating the pilot allowing Vietnamese citizens to play at casinos as prescribed in Clause 2, Article 12 of Decree No. 03/2017/NĐ-CP.

2. Record books or electronic cards for controlling subjects permitted to play at casino business premises as prescribed in Article 11 of Decree No. 03/2017/NĐ-CP must include the following basic contents:

a) Electronic card code (if applicable);

b) Full name;

c) Passport number or valid travel document;

d) Nationality;

đ) Identification photo (if issued an electronic card);

e) Time of entry and exit from casino business premises;

g) Other relevant information related to player control as required by the enterprise for management purposes.

3. Record books or electronic cards for controlling subjects permitted to enter and exit casino business premises as prescribed in Clause 2 and Clause 3, Article 14 of Decree No. 03/2017/NĐ-CP must include the following basic contents:

a) Information prescribed in points a, b, and đ of Clause 2 of this Article;

b) Identity card number, passport number, or employee card number;

c) Position and job title assigned to subjects prescribed in Clause 2, Article 14 of Decree No. 03/2017/NĐ-CP at casino business premises;

d) Position and duties assigned to subjects prescribed in Clause 3, Article 14 of Decree No. 03/2017/NĐ-CP;

đ) Working hours at casino business premises;

e) Other relevant information related to controlling subjects permitted to enter and exit casino business premises as required by the enterprise for management purposes.

4. Monitoring of Vietnamese citizens playing at casino business premises as prescribed in Article 12 of Decree No. 03/2017/NĐ-CP must include the following contents:

a) Information prescribed in Clause 6, Article 12 of Decree No. 03/2017/NĐ-CP;

b) A commitment statement confirming sufficient financial capacity to participate in playing at casino business premises as prescribed in point b, Clause 3, Article 12 of Decree No. 03/2017/NĐ-CP;

c) Form of documentation proving compliance with the financial capacity requirements to participate in playing at casino business premises as prescribed in point b, Clause 3, Article 12 of Decree No. 03/2017/NĐ-CP;

d) A commitment statement confirming non-inclusion in the category prohibited from entering and playing at casino business premises as prescribed in Clause 4, Article 12 of Decree No. 03/2017/NĐ-CP.

5. Enterprises have the responsibility to keep players' information confidential in accordance with the law, except when providing such information to competent state management agencies upon request for supervision, inspection, auditing, and investigation purposes as prescribed by law.

Article 4. Documents proving Vietnamese individuals have sufficient financial capacity to participate in casino gaming activities

The documents proving Vietnamese individuals have sufficient financial capacity to participate in casino gaming activities as stipulated in point b Clause 3 Article 12 Decree No. 03/2017/NĐ-CP include one of the following types of documents:

1. Documents proving income subject to personal income tax at level 3 or higher as prescribed in the Personal Income Tax Law: A certified copy of the personal income tax declaration form that has been settled by the tax authority or a certificate from the tax authority confirming the individual's income subject to personal income tax at level 3 or higher as prescribed in the Personal Income Tax Law within one year prior to entering the casino for gaming activities.

2. Documents proving regular income of VND 10 million/month or more:

a) A certified copy of the monthly income confirmation, monthly pay slip, or salary payment decision issued by the organization where the individual works, confirming the monthly income of VND 10 million or more in the three months immediately preceding the date of entry into the casino for gaming activities;

b) A certified copy of the valid lease contract for renting property or assets by the individual, according to the provisions of the law, showing a total monthly rental amount of VND 10 million or more;

c) A certified copy of the bank savings book or bank account statement of the individual with a term of one year or longer and generating interest of VND 10 million or more per month;

d) Other documents proving the individual has regular income of VND 10 million/month or more;

đ) In cases where the documents specified in points a, b, and c of this Clause cannot prove the individual's income reaches VND 10 million/month, the individual may present multiple documents simultaneously to prove their total regular income is VND 10 million/month or more.

3. Individuals participating in casino gaming activities shall be responsible under the law for the accuracy and truthfulness of the certified documents stipulated in Clause 1 and Clause 2 of this Article when presented to the casino business enterprise for entry into the casino for gaming activities.

4. Casino business enterprises permitted to pilot allowing Vietnamese individuals to enter and play at the casino shall be responsible for retaining the documents stipulated in Clause 1 and Clause 2 of this Article for a minimum period of five years from the date of permitting Vietnamese individuals to enter and play at the casino for management, supervision, inspection, and audit purposes by state management agencies.

Article 5. Submission, Management, and Use of Ticket Revenue for Participation in Casino Gaming Activities

1. Casino business enterprises permitted to pilot allowing Vietnamese individuals to participate in casino gaming activities in accordance with the law shall be responsible for collecting and accounting separately the revenue from ticket sales for participation in casino gaming activities as stipulated in point c Clause 3 Article 12 Decree No. 03/2017/NĐ-CP.

2. Casino business enterprises permitted to pilot allowing Vietnamese individuals to participate in casino gaming activities shall declare the number of Vietnamese individuals purchasing tickets to enter the casino and remit the entire ticket sale revenue into the state budget account at the State Treasury equivalent to the tax authority where the casino business enterprise registers for tax declaration. The time of remittance shall coincide with the temporary withholding period for corporate income tax as prescribed by the tax laws.

3. The provincial budget where the casino business enterprise organizes its business operations shall benefit from the revenue generated from ticket sales for participation in casino gaming activities and shall be used for investment in social welfare, community service, ensuring social security and public order, with a minimum allocation of 60% for education, training, vocational training, and healthcare.

4. In cases where the casino business enterprise fails to remit the entire revenue from ticket sales for participation in casino gaming activities of Vietnamese individuals to the State Treasury on time or does not comply with the regulations, it must remit the entire revenue from ticket sales for participation in casino gaming activities as prescribed and pay late fees equal to the late payment penalty for taxes.

5. The Provincial Tax Department where the casino business enterprise is permitted to pilot allowing Vietnamese individuals to enter and play at the casino shall be responsible for monitoring, inspecting, and urging the casino business enterprise to remit the entire revenue from ticket sales for participation in casino gaming activities as a tax revenue of the state budget and report quarterly to the People's Committee of the province or city on the situation of remitting the revenue from ticket sales for participation in casino gaming activities into the local budget of the casino business enterprise.

Article 6. Management of Prescribed Currency

1. At least five working days before commencing business with prescribed currency, enterprises must register the form, design, quantity, and types of prescribed currency with the Department of Finance and the local tax authority for monitoring and management.

2. Enterprises have the right to temporarily cease using registered prescribed currency according to their management needs, provided that they notify the relevant authorities in writing at least five working days prior to the cessation date. The notification must clearly state the cessation date, reasons for cessation, and the expected time for resuming use. In case of changes to the resumption date, enterprises must inform the authorities in writing.

3. The enterprise must maintain a record book for managing agreed-upon currency, including the following basic contents:

a) Form of agreed-upon currency;

b) Quantity and types of prescribed currency purchased, re-exported, or destroyed by the enterprise, including specific details by denomination and foreign currency type, purchase, re-export, or destruction date, name of manufacturer or supplier (if applicable);

c) Other contents according to the enterprise's management requirements.

Article 7. Application Forms for Issuance, Reissuance, and Adjustment of Certificates of Eligibility for Casino Business Operations

1. Application for issuance of a Certificate of Eligibility for Casino Business Operations according to the model specified in Appendix No. 01 issued together with this Circular.

2. Application for reissuance, adjustment, and extension of a Certificate of Eligibility for Casino Business Operations according to the model specified in Appendix No. 02 issued together with this Circular.

3. Certificate of Eligibility for Casino Business Operations issued by the Ministry of Finance according to the model specified in Appendix No. 03 issued together with this Circular.

Article 8. Documents Proving Completion of Capital Disbursement

1. Documents proving that the enterprise has completed capital disbursement as stipulated in Clause 3, Article 25 of Decree No. 03/2017/NĐ-CP must include:

a) Enterprise report on the implementation of capital disbursement for the integrated resort project with casino, including the following main contents:

- Project name, objectives, scale, total investment amount, investment items, and progress of implementing these items as stated in the Investment Registration Certificate or the Decision on Investment Orientation;

- Status of capital disbursement and implementation of investment items as stated in the Investment Registration Certificate or the Decision on Investment Orientation up to the time of applying for the Certificate of Eligibility for Casino Business Operations. Investment capital must be directly disbursed to organizations or individuals related to the enterprise in asset purchases and payment of costs forming assets and other related investment costs. Implementation of investment items must be reflected in contracts for implementing these items, acceptance certificates specifying the accepted volume, and confirmation by independent units (supervision consultants or project management consultants). The enterprise is responsible for the accuracy and truthfulness of the reported data;

b) Commitment from the investor regarding the status of capital disbursement and fulfillment of other commitments (if any);

c) Audit report by an independent auditing organization approved to audit public interest entities according to the auditing laws for the enterprise's casino business report as stipulated in Point a, Clause 1 of this Article. The audit report must be a fully approved report according to the laws on independent auditing;

d) Other documents proving completion of capital disbursement (if any).

2. Documents proving additional capital disbursement for adjusting the total number of gaming machines and tables as stipulated in the Certificate of Eligibility for Casino Business Operations according to Point d, Clause 2, Article 29 of Decree No. 03/2017/NĐ-CP must include:

a) Enterprise report on the actual additional capital disbursement of the project compared to the actual capital disbursement at the time of issuing the most recent Certificate of Eligibility for Casino Business Operations, including the following main contents:

- Project name, objectives, scale, total investment amount, investment items, and progress of implementing these items as stated in the Investment Registration Certificate or the Decision on Investment Orientation;

- Actual additional capital disbursement of the project compared to the actual capital disbursement at the time of issuing the most recent Certificate of Eligibility for Casino Business Operations. Investment capital must be directly disbursed to organizations or individuals related to the enterprise in asset purchases and payment of costs forming assets and other related investment costs. Implementation of investment items must be reflected in contracts for implementing these items, acceptance certificates specifying the accepted volume, and confirmation by independent units (supervision consultants or project management consultants). The enterprise is responsible for the accuracy and truthfulness of the reported data;

b) Commitment from the investor regarding the status of additional capital disbursement and fulfillment of other commitments (if any);

c) Audit report by an independent auditing organization approved to audit public interest entities according to the auditing laws for the enterprise's casino business report as stipulated in Point a, Clause 2 of this Article. The audit report must be a fully approved report according to the laws on independent auditing;

d) Other documents proving completion of additional capital disbursement (if any).

Chapter III

FINANCIAL MANAGEMENT, ACCOUNTING REGULATIONS, AUDITING SYSTEMS, AND REPORTING REQUIREMENTS

Article 9. Principles for Accounting and Management of Revenue and Operating Expenses of Casino Business

1. Enterprises engaged in casino business must separately account for revenues, expenses, and profits related to casino operations and must track these items separately in their accounting books and financial reports.

2. In cases where revenues and expenses related to casino operations are linked to other business activities of the enterprise, they shall be handled as follows:

a) If the enterprise cannot separately account for casino business revenue from other business activities, the entire revenue that cannot be separated will be considered as revenue subject to special consumption tax for casino operations.

b) For expenses that relate both to casino operations and other business activities of the enterprise, the enterprise shall allocate such expenses according to the percentage ratio between casino business revenue and total enterprise revenue.

3. Enterprises engaged in casino business have the responsibility to account for revenues and expenses in accordance with accounting standards and guidelines set forth in this Circular.

4. The determination of revenues and expenses for declaration and payment of taxes on casino operations shall be carried out in accordance with current tax laws.

Article 10. Revenues and Other Income

Revenues and other income of enterprises engaged in casino business include:

1. Revenues from casino operations (excluding revenue from entry fees for playing at casino outlets for enterprises piloted to allow Vietnamese citizens to play casino games as stipulated in point c, Clause 3, Article 12 of Decree No. 03/2017/NĐ-CP).

2. Revenues from other business activities outside of casino operations as prescribed by law.

3. Financial revenues.

4. Other income (if any).

Article 11. Operating Expenses of Casino Business

1. Operating expenses of casino business encompass all costs serving casino operations as defined by law.

2. Prize payout expenses are the actual amounts paid by the enterprise to winners participating in games at casino outlets in accordance with game rules and relevant tax regulations.

Article 12. Accounting System, Audit, and Public Disclosure of Financial Reports

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

2. Annual financial reports of enterprises engaged in casino business must be audited by an independent auditing organization legally permitted to operate in Vietnam.

3. Within one hundred twenty (120) days from the end of the fiscal year, enterprises engaged in casino business must publicly disclose their financial reports in accordance with the law.

4. Enterprises shall comply with the retention requirements for financial reports as stipulated in the Accounting Law and implementing directives.

1. Regarding financial reports:

a) At the end of each quarter, enterprises engaged in casino business must prepare and submit financial reports to the local Tax Department within thirty (30) days from the end of the quarter;

b) Enterprises engaged in casino business are responsible for submitting annual financial reports to the Ministry of Finance, Provincial Department of Finance, and local Tax Department within ninety (90) days from the end of the fiscal year;

c) The legal representative of enterprises engaged in casino business bears legal responsibility for the accuracy and truthfulness of these reports.

2. Regarding operational activity reports:

 Semi-annually and annually, enterprises engaged in casino business must prepare and submit operational activity reports according to the templates specified in Appendices 04, 05, 06, and 07 issued together with this Circular to the Ministry of Finance, Provincial Department of Finance, Provincial Department of Culture, Sports and Tourism (or Provincial Department of Culture and Sports), and local Tax Department within thirty (30) days from the end of the accounting period as prescribed by accounting laws. The legal representative of enterprises engaged in casino business bears legal responsibility for the accuracy and truthfulness of these reports.

3. In cases where the Ministry of Finance or the People's Committee of a centrally governed city or province requests ad hoc reporting, enterprises engaged in casino business must prepare and submit reports as required.

Chapter IV

RESPONSIBILITIES OF ORGANIZATIONS

Article 14. Responsibilities of the Department of Finance

1. Coordinate with relevant units to assist the People's Committee of the province or centrally governed city in managing, supervising, and inspecting casino business activities within their jurisdiction in accordance with Decree No. 03/2017/NĐ-CP, the provisions of this Circular, and related laws.

2. Assist the People's Committee of the province or centrally governed city in managing and utilizing revenue from casino participation fees for social welfare purposes, community services, and ensuring social security and public order in compliance with the law and the provisions of this Circular.

Article 15. Responsibilities of the Local Tax Authority

1. Coordinate with the Department of Finance and other relevant agencies in managing, supervising, and inspecting casino business activities within their jurisdiction in accordance with Decree No. 03/2017/NĐ-CP, the provisions of this Circular, and related laws.

2. Be responsible for managing, inspecting, and auditing the tax obligations of casino businesses in accordance with the law.

3. Be responsible for notifying enterprises of the chapters, types, and account items for state budget revenues at the Treasury equivalent to the tax authority; supervise, inspect, and audit the payment of participation fees at casino operating points for pilot casino businesses allowing Vietnamese citizens to participate in accordance with the law.

Article 16. Responsibilities of Casino Business Enterprises

1. Comply with legal regulations governing casino operations as stipulated in Decree No. 03/2017/NĐ-CP, the provisions of this Circular, and other related laws.

2. Be responsible for establishing and promulgating internal management rules and procedures that ensure transparency, honesty, and compliance with legal requirements in casino business operations.

3. Be responsible for preparing reports on the implementation of investment disbursement and additional investment disbursement in accordance with Article 8 of this Circular, and bear legal responsibility for the accuracy and honesty of the reported figures and the legality of the application for issuance and adjustment of the Certificate of Eligibility for Casino Business Operations.

Article 17. Responsibilities of Auditing Enterprises

Auditing enterprises meeting the conditions to audit reports on the implementation of investment disbursement and additional investment disbursement in accordance with Article 8 of this Circular shall be legally accountable to the law, clients, and users of the audit results regarding the audit results of casino business enterprises' reports on the implementation of investment disbursement and additional investment disbursement.

Chapter V

IMPLEMENTATION

Article 18. Implementation Organization

1. This Circular takes effect from December 1, 2017.

2. During the implementation process, if there are difficulties or obstacles, organizations and individuals are advised to report to the Ministry of Finance for consideration and resolution./.