Circular No. 11/2014/TT-BTC guiding certain provisions stipulated in Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on operating electronic games with rewards for foreigners.

CIRCULAR

Guidelines for certain provisions set forth in Decree No. 86/2013/NĐ-CP

dated July 29, 2013 of the Government on operating electronic game machines with prizes for foreigners

 for foreigners

______________________

 

electronic games with prizes for foreigners;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating 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 issues this Circular to provide guidelines for certain provisions set forth in Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on operating electronic game machines with prizes for foreigners.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides guidelines for certain provisions set forth in Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on operating electronic game machines with prizes for foreigners (hereinafter referred to as Decree No. 86/2013/NĐ-CP).

Article 2. Applicability

1. Enterprises operating electronic games with rewards for foreigners.

2. Subjects permitted to play and enter and exit premises where electronic games with rewards for foreigners are operated as prescribed by law.

3. Enterprises producing, supplying electronic game machine equipment with prizes and independent organizations inspecting electronic game machines with prizes when supplying such equipment and inspection services for electronic game machines with prizes as prescribed in this Circular.

4. State management agencies having functions related to issuing permits, managing, supervising, inspecting, auditing, and imposing administrative penalties in the operation of electronic game machines with prizes for foreigners.

5. Other organizations and individuals related to the operation of electronic game machines with prizes for foreigners.

Chapter II

OPERATING BUSINESS

 ELECTRONIC GAMES WITH PRIZES

Article 3. Business location

1. Enterprises operating electronic game machines with prizes for foreigners (hereinafter referred to as enterprises) shall be responsible for arranging business points for electronic game machines with prizes in accordance with the provisions of Article 5 of Decree No. 86/2013/NĐ-CP.

2. Enterprises must arrange electronic devices and camera systems to monitor and supervise all activities at the business point continuously (24/7), including ensuring monitoring of the following basic positions:

a) Entrance and exit of the business location;

b) Areas where gaming machines are placed to ensure monitoring of each individual gaming machine's operation;

c) Cashier area, vault for counting cash and substitute currency, and storage of cash and substitute currency containers.

3. Images at the positions specified in Clause 2 of this Article must be stored fully for a minimum period of thirty (30) days from the date of recording. In case of necessity, the storage time may be extended further upon request of competent state management agencies.

4. Enterprises must establish a supervision and security monitoring regulation for business points, specifying clearly the areas for supervision and security monitoring, the areas for storing records and images, and the persons permitted to enter and exit the supervision and security monitoring areas.

5. Enterprises are responsible for providing the regulation, documents, records, and images to competent state management agencies during the implementation of management, supervision, inspection, and audit work.

Article 4. Record of Persons Entering and Exiting Business Points

1. Enterprises must maintain a record to control persons permitted to play and those permitted to enter and exit business points in accordance with Articles 9 and 11 of Decree No. 86/2013/NĐ-CP. The record can be maintained in the form of a ledger or electronic information. The record must be stored for a minimum period of two (02) years to serve the management, supervision, inspection, and audit work of competent state management agencies.

2. The record to control persons permitted to play at business points in accordance with Article 9 of Decree No. 86/2013/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 the business point;

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

3. The record to control persons permitted to enter and exit business points in accordance with Clause 2 and Clause 3 of Article 11 of Decree No. 86/2013/NĐ-CP must include the following basic contents:

a) Information as stipulated in points a, b, đ, and e of Clause 2 of this Article;

b) Position and job title assigned at the business point;

c) Working hours at the business point;

d) Other relevant information required for controlling persons permitted to enter and exit the business point according to the enterprise's management requirements.

Article 5. Quantity and types of machines and forms of electronic games with prizes

1. The maximum number of electronic game machines with prizes that an enterprise is allowed to operate is specified in the Certificate of Eligibility for Business issued by the Ministry of Finance. The enterprise has the right to decide the actual number of electronic game machines with prizes operated but must not exceed the maximum number of electronic game machines with prizes specified in the Certificate of Eligibility for Business.

2. Based on the actual number of electronic game machines with prizes operated by the enterprise, the enterprise may choose the types of machines, forms of electronic games with prizes, and the ratio of electronic game machines with prizes as prescribed in Appendix No. 01 attached to this Circular.

3. Within five (05) working days from the date the enterprise begins operating electronic game machines with prizes, the enterprise shall report in writing to the Ministry of Finance, Department of Finance, Department of Culture, Sports and Tourism, and the local Tax Office about the actual number, types, forms of electronic games with prizes, and the ratio of electronic game machines with prizes operated for tracking and management.

4. During the course of business operations, the enterprise has the right to change the number, types, forms of electronic games with prizes, and the ratio of electronic game machines with prizes but must ensure compliance with the regulations on the number, types, forms of electronic games with prizes, and the ratio of electronic game machines with prizes as prescribed in this Circular and the Certificate of Eligibility for Business.

In case there is a change in the number, types, forms of electronic games with prizes, and the ratio of electronic game machines with prizes, within five (05) working days from the date of such changes, the enterprise shall report in writing to the Ministry of Finance, Department of Finance, Department of Culture, Sports and Tourism, and the local Tax Office for tracking and management.

Article 6. Management of Prescribed Currency

1. The agreed currency to replace cash used in the business premises of electronic games with prizes of the enterprise shall be presented in the following forms:

a) Tokens;

b) Cards, vouchers;

c) Conversion points;

d) Other forms of cash replacement as determined by the enterprise.

2. The agreed currency specified in point a and point b of Clause 1 of this Article must include the following basic information:

a) Name or emblem of the enterprise;

b) Serial number, symbol of the agreed currency;

c) Denomination of the agreed currency;

d) Name, symbol of the manufacturer, supplier (if any);

đ) Other contents as required by the enterprise's management.

3. At least five (05) working days before introducing the agreed currency into business operations, the enterprise must register the form, design, quantity, and type of the agreed currency with the local Department of Finance and the directly managing tax authority for tracking and management.

4. An enterprise has the right to temporarily cease using the agreed currency registered with state management agencies as provided for in Clause 3 of this Article according to its management needs. At least five (05) working days before the temporary cessation of use of the agreed currency, the enterprise must notify in writing these agencies. The notification content must clearly specify the date of temporary cessation of use of the agreed currency, the reason for the temporary cessation of use of the agreed currency, and the expected time to resume use. In case there is a change in the date of resuming use of the agreed currency, the enterprise must notify these agencies in writing.

5. The enterprise must maintain a Register for managing the agreed currency, including the following basic contents:

a) Form of agreed-upon currency;

b) The quantity and types of agreed currency that the enterprise purchases, re-exports, or destroys, including details by each denomination and type of foreign currency, purchase, re-export, or destruction date, name of manufacturer, supplier (if any) for the agreed currency specified in points a and b of Clause 1 of this Article;

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

6. The purchase, re-export, or destruction of agreed currency shall be carried out in accordance with the provisions of Article 14 of Decree No. 86/2013/NĐ-CP, Article 8 of this Circular, and relevant laws.

Article 7. Management of spare parts for gaming machines with prizes

1. Only enterprises that have been issued a Certificate of Eligibility for Business Operations may be permitted to purchase backup equipment for electronic gaming machines with prizes to replace when necessary as stipulated in Clause 3 of Article 14 of Decree No. 86/2013/NĐ-CP.

2. The spare parts for gaming machines with prizes that enterprises are allowed to purchase include:

a) Screen;

b) Cash receipt system, standardized currency;

c) Prize payout system;

d) Storage system;

đ) Circuit board.

3. The quantity of each type of spare part mentioned in Clause 2 of this Article shall not exceed ten percent (10%) of the total number of such spare parts of gaming machines with prizes currently operated by the enterprise.

4. Backup equipment for electronic gaming machines with prizes as specified in Clause 2 of this Article must be brand new 100%, sourced from the manufacturer or supplier of electronic gaming machines with prizes as prescribed in this Circular.

5. Enterprises must maintain a Register for each spare part of gaming machines with prizes, including the following basic contents:

a) Quantity and specific type of spare parts for gaming machines with prizes purchased, re-exported, or destroyed by the enterprise;

b) Date of purchase, re-exportation, or destruction;

c) Name of manufacturer or supplier;

d) Serial number (if available);

đ) Year of manufacture;

e) Expiry date (if applicable);

g) Date of use for each spare part;

h) Reason for use.

6. When replacing spare parts for gaming machines with prizes, enterprises must prepare a record clearly stating the machine with the replaced part, the replaced part, and the reason for replacement.

7. The replacement of backup equipment must ensure the following basic principles:

a) Not affecting the minimum payout ratio as specified in point đ of Clause 3 of Article 10 of this Circular;

b) Not increasing the number or types of electronic gaming machines with prizes allowed for business operations.

Article 8. Procedures and formalities for the destruction of electronic gaming machines with prizes and agreed currency

1. The destruction of electronic gaming machines with prizes and agreed currency shall be carried out in accordance with the provisions of Clauses 4 and 5 of Article 14 of Decree No. 86/2013/NĐ-CP and the provisions of this Circular.

2. The procedures and formalities for the destruction of electronic gaming machines with prizes and agreed currency are as follows:

a) Enterprises wishing to destroy send a written notice to the Department of Finance, Department of Culture, Sports and Tourism, and the tax authority directly managing at the locality, informing about the destruction plan and requesting these agencies to send representatives to supervise and confirm the destruction process;

b) Within seven (07) working days from the date of receipt of the enterprise's written notice, the agencies mentioned in point a of this Clause must send a written confirmation to the enterprise regarding the dispatch of their representative to supervise the destruction process. The enterprise is permitted to carry out the destruction if at least one (01) representative from the aforementioned agencies participates in supervising the destruction process;

c) Within seven (07) working days from the date of receipt of the written confirmation from the relevant agencies, the enterprise informs the representatives of these agencies specifically about the time, location, quantity, and types of electronic gaming machines with prizes and agreed currency to be destroyed, the destruction methods, and the organization of the destruction process as previously notified;

d) Upon completion of the destruction process, the parties involved in the destruction proceed to establish a confirmation record of the destruction according to the model prescribed in Appendix No. 02 attached to this Circular.

Article 9. Manufacturers, suppliers of electronic amusement machines with prizes and independent inspection organizations for electronic amusement machines with prizes

1. Manufacturers, suppliers of electronic amusement machines with prizes and independent inspection organizations for electronic amusement machines with prizes are permitted to provide electronic amusement machines with prizes and supply inspection services for such machines in Vietnam if they are authorized to operate in the Macao market and have been published on the website: www.dicj.gov.mo.

2. Enterprises when purchasing electronic amusement machines with prizes or processing inspection procedures for electronic amusement machines with prizes must request manufacturers, suppliers of electronic amusement machines with prizes or independent inspection organizations for electronic amusement machines with prizes to provide complete documents proving compliance with the conditions stipulated in Clause 1 of this Article. These documents must be notarized, certified, or legalized by the competent authority. The enterprise is responsible for storing these documents to serve the inspection and supervision work of state management agencies.

Article 10. Technical Conditions of Electronic Amusement Machines with Prizes

1. Electronic amusement machines with prizes must ensure the following basic technical conditions:

a) Designed and manufactured to ensure that prize-giving games occur honestly, objectively, safely, stably, and are verifiable when state management agencies with authority perform inspection and supervision tasks as prescribed in Decree No. 86/2013/NĐ-CP;

b) Have documentation detailing the hardware, software characteristics, peripheral equipment, machine operation methods, maintenance, repair, replacement, and repair of faulty parts.

2. The hardware of electronic amusement machines with prizes must ensure the following basic technical conditions:

a) The body of the electronic amusement machine with prizes must be sturdy enough to prevent unauthorized interference from outside. On the body of the machine, there must be a label attached externally by the manufacturer or supplier, clearly indicating the following basic information: Name of the manufacturer or supplier, machine serial number, date of manufacture, and expiration date of use (if applicable);

b) The system for accepting cash and standardized currency must ensure that it only accepts cash types specified by the enterprise and the enterprise's standardized currency, and must prevent external influences;

c) The prize payout system for players must be installed within the electronic amusement machines with prizes, ensuring protection against external influences;

d) The storage system of the electronic amusement machine with prizes must be designed in a separate location from other components inside the machine, and must have a mechanism allowing verification and monitoring of important machine functions including: Hardware and software status, game types and results, transaction and payment information;

đ) The circuit board of the electronic amusement machine with prizes must be designed and operated according to the manufacturer's guide, each circuit board must be named or numbered, changes must be recorded in the file and must ensure that they do not affect the overall operation of the machine;

e) Mechanical devices used to control electronic amusement games must ensure that they do not affect other components within the electronic amusement machine with prizes.

3. The software of electronic amusement machines with prizes must ensure the following basic technical conditions:

a) The software program for checking the machine's status must be able to quickly detect, analyze, and take measures to handle any faults that arise;

b) The measurement and inspection software program must have the function of operating and managing electronic clocks to store, display, and update information;

c) The software program for randomly selecting outcomes must ensure that the selection of game results is independent, non-prejudiced, and does not create factors that could predict the outcome of the game;

d) The software program for controlling the recovery process of electronic amusement machines with prizes must be able to restore and maintain the operational status of the machine immediately before its operation was interrupted, and must be able to detect all changes since the interruption of the machine's operation;

đ) The minimum fixed payout ratio for slot machines must be 90% (including accumulated prizes) and must be pre-installed in the machine. In cases where the enterprise changes the payout ratio, it must ensure that the payout ratio is not lower than the minimum payout ratio prescribed, the enterprise must reprocess the inspection procedures before putting the machine into use, and must specify the payout ratio in the Game Rules;

e) Electronic amusement machines with prizes must allow software checks at the business location upon request by state management agencies with authority;

g) The reporting system of electronic amusement machines with prizes must ensure the provision of comprehensive and detailed reports on game results, transaction and payment information, total money inflow and outflow of the machine, beginning and ending balances.

4. Peripheral equipment of electronic amusement machines with prizes must ensure the following basic technical conditions:

a) The screen of the electronic amusement machine with prizes must be scratch-resistant, without secret function keys or undocumented keys that may affect the game;

b) Cables and plugs must be easily identifiable, designed for convenient repair by technicians while preventing external access;

c) The electrical switch system must clearly indicate the on/off button and be positioned to limit players from automatically turning the power on or off.

Article 11. Rules for Resolving Disputes in Business Points

1. Enterprises must establish rules for resolving disputes between players and between players and enterprises within business points. The dispute resolution rules must include the following basic contents:

a) Cases of disputes to be resolved under the dispute resolution rules;

b) Procedures and formalities for resolving disputes, including specific details on the dispute resolution application file, the department receiving the file, the enterprise's time limit for handling disputes, and the authority to decide on dispute resolution;

c) Specific responsibilities of each party during the dispute resolution process;

d) Other related contents prescribed by the enterprise.

2. Enterprises must post and distribute brochures publicly displaying the dispute resolution rules at business points.

3. All parties involved are responsible for implementing the dispute resolution rules as stipulated. In case one of the parties disagrees with the dispute resolution result, the parties shall proceed with court procedures according to the provisions of Vietnamese civil law.

Chapter III

DOCUMENTS AND PROCEDURES FOR ISSUING BUSINESS LICENSES

 CONDITIONS FOR OPERATING ELECTRONIC GAMING MACHINES WITH PRIZES

Article 12. Documents and procedures for issuing Business Registration Certificates meeting the required conditions

1. Enterprises meeting the conditions prescribed in Article 19 of Decree No. 86/2013/ND-CP shall be considered for issuance of a business license. The documents, procedures, and review contents for issuing a business license are regulated in Articles 20 and 21 of Decree No. 86/2013/ND-CP, including the Application for Issuance of a Business License according to the form prescribed in Appendix No. 03 issued together with this Circular.

2. When considering the issuance of a business license for enterprises as stipulated in Clause 1 of this Article, the Ministry of Finance bases on the actual number of guest rooms in tourist accommodation establishments currently operating to determine the number of electronic gaming machines with prizes according to Clause 1 of Article 7 of Decree No. 86/2013/ND-CP.

3. Enterprises currently organizing operations of electronic gaming machines with prizes as stipulated in Clause 1 of Article 51 of Decree No. 86/2013/ND-CP must submit an application for issuance of a business license. The application documents for issuance of a business license include:

a) An Application for Issuance of a Business License according to the form prescribed in Appendix No. 03 issued together with this Circular;

b) A certified copy of the Investment Certificate or Enterprise Registration Certificate issued by the competent state management agency still in effect, which specifies that the enterprise is permitted to operate electronic gaming machines with prizes or a document from the competent state management agency allowing the enterprise to operate electronic gaming machines with prizes;

c) Documents prescribed in Clauses 3, 5, 6, 7, 8, and 10 of Article 20 of Decree No. 86/2013/ND-CP. Notably, enterprises without tourist accommodation establishments do not need to submit the documents prescribed in Clause 3 of Article 20 of Decree No. 86/2013/ND-CP;

d) Business plans, including the following main contents:

- Business situation of electronic gaming machines with prizes before the submission of the application for issuance of a business license, including: Maximum number of electronic gaming machines with prizes allowed to operate, information about the business point (location, area), number and types of machines, actual types of electronic gaming machines with prizes operated by the enterprise, business results of electronic gaming machines with prizes of the enterprise in the three (03) years closest to the date of submitting the application for issuance of a business license (revenue, expenses, profit, and national budget payments);

- Projected business plan for the future, including: Number and types of machines, proposed types of electronic gaming machines with prizes to continue operating, projected revenue, expenses, profit, estimated foreign currency needs, security measures for the business point, operating hours, and implementation plan.

4. The procedure for issuing a business license for enterprises as stipulated in Clause 3 of this Article is carried out according to the provisions of Clauses 1, 2, and 3 of Article 21 of Decree No. 86/2013/ND-CP.

5. The Ministry of Finance shall take the lead and coordinate with relevant agencies, including the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the Ministry of Public Security, the State Bank of Vietnam, and the People's Committee of provinces and centrally-administered cities where enterprises organize operations of electronic gaming machines with prizes to review applications for issuance of a business license for enterprises as stipulated in Clause 3 of this Article according to the appropriate conditions prescribed in Clause 1 of Article 51 of Decree No. 86/2013/ND-CP.

6. The business license for operating electronic gaming machines with prizes is issued by the Ministry of Finance according to the form prescribed in Appendix No. 05 issued together with this Circular.

Article 13. Documents and procedures for reissuing Business Registration Certificates meeting the required conditions

1. Documents for applying for reissuance of a business license for cases prescribed in Clause 1 of Article 23 of Decree No. 86/2013/ND-CP include:

a) An Application for Reissuance of Business Registration Certificate meeting the required conditions in accordance with Form 04 attached hereto;

b) A certified copy of the Investment Certificate or Enterprise Registration Certificate issued by the competent state management agency still in effect;

c) A certified copy of the Business Registration Certificate of the enterprise which has been lost, damaged, or destroyed (if available).

2. Procedure for reissuing a business license

Within fifteen (15) working days from the date of receipt of complete and valid documents from the enterprise as stipulated in Clause 1 of this Article, the Ministry of Finance shall reissue a business license for the enterprise according to the provisions of Clause 1 of Article 23 of Decree No. 86/2013/ND-CP.

3. The validity period of the reissued business license is the remaining operational period specified in the original business license issued, reissued, or adjusted at the nearest time.

Article 14. Documents and Procedures for Amending the Business Condition Compliance Certificate

1. Documents for applying for amendment of a business license for cases prescribed in Clause 2 of Article 23 of Decree No. 86/2013/ND-CP include:

a) An application form for amending the Business Condition Compliance Certificate according to the model specified in Appendix No. 04 issued together with this Circular;

b) A certified copy of the Investment Certificate or Enterprise Registration Certificate issued by the competent state management agency still in effect;

c) A certified copy of the business license.

d) Documents proving the content regulated by the Business Condition Certificate in accordance with Clause 2, Article 23 of Decree No. 86/2013/ND-CP and relevant laws.

2. Procedure for amending the Business Condition Certificate

Within thirty (30) working days from the date of receiving complete and valid files of the enterprise in accordance with Clause 1 of this Article, the Ministry of Finance shall issue an amended Business Condition Certificate to the enterprise in accordance with Clause 2, Article 23 of Decree No. 86/2013/ND-CP.

3. The validity period of the amended Business Condition Certificate is the remaining operating period specified in the Business Condition Certificate issued, reissued, or amended at the nearest time point.

Article 15. Documents and Procedures for Extending the Business Condition Compliance Certificate

1. The dossier for extending the Business Condition Certificate in cases stipulated in Clause 3, Article 23 of Decree No. 86/2013/ND-CP includes:

a) An application form for extending the Business Condition Compliance Certificate according to the model specified in Appendix No. 04 issued together with this Circular;

b) A certified copy of the Business Condition Certificate still valid for at least six (06) months prior to submitting the application for extending the Business Condition Certificate;

c) Dossiers prescribed in Clauses 2, 3, 4, 5, 6, 7, 8, and 10, Article 20 of Decree No. 86/2013/ND-CP;

d) A certified copy of the conclusion record meeting all business conditions by the inspection agency for periodic inspections as prescribed in Clause 3, Article 33 of Decree No. 86/2013/ND-CP;

đ) Business plan, including main contents:

- Business situation of electronic games with rewards before the submission of the application for extending the Business Condition Certificate, including: Maximum number of permitted gaming machines, information about the business location (position, area), actual number and types of machines, types of electronic games with rewards currently operated by the enterprise, business results of electronic games with rewards of the enterprise in the last three (03) years up to the date of submitting the application for extending the Business Condition Certificate (revenue, expenses, profit, and state budget payments) and compliance with relevant laws related to the operation of electronic games with rewards during the business period;

- Anticipated business plan for the upcoming period, including: Number and types of machines, types of electronic games with rewards proposed to be allowed to operate, anticipated revenue, expenses, profit, anticipated foreign currency receipts and expenditures, security measures for the business location, requested extension period, implementation plan, and the enterprise's commitment to comply with relevant laws related to the operation of electronic games with rewards in the future period.

2. The procedure for extending the Business Condition Certificate is carried out in accordance with Clauses 1, 2, and 3, Article 21 of Decree No. 86/2013/ND-CP.

3. The Ministry of Finance shall take the lead and coordinate with relevant agencies including: the Ministry of Planning and Investment, the Ministry of Culture, Sports and Tourism, the Ministry of Public Security, the State Bank of Vietnam, and the People's Committee of the province or centrally-administered city where the enterprise organizes the operation of electronic games with rewards to review the dossier in accordance with the conditions prescribed in Point b, Clause 3, Article 23 of Decree No. 86/2013/ND-CP.

Article 16. Fees for Issuance, Reissuance, Amendment, and Extension of Business Condition Compliance Certificate

1. The fee for requesting issuance and extension of the Business Condition Compliance Certificate for enterprises as stipulated in Decree No. 86/2013/ND-CP and this Circular is 150,000,000 VND.

2. The fee for requesting reissuance and amendment of the Business Condition Compliance Certificate for enterprises as stipulated in Decree No. 86/2013/ND-CP and this Circular is 20,000,000 VND.

3. The fees for issuance, reissuance, amendment, and extension of the Business Condition Compliance Certificate as stipulated in Clause 1 and Clause 2 of this Article are revenues belonging to the state budget.

4. After reviewing and determining that the enterprise meets the conditions for issuance, reissuance, amendment, and extension of the Business Condition Compliance Certificate as stipulated in Articles 12, 13, 14, and 15 of this Circular, the Ministry of Finance shall notify the enterprise to pay the fee according to the provisions of the law. The notification form follows Model 06 attached to this Circular.

5. Upon receiving the notification from the Ministry of Finance, the enterprise is responsible for paying the fee into the state budget according to the current State Budget Classification at the National Treasury and sending one copy of the payment receipt to the Ministry of Finance. The enterprise will only be issued, reissued, amended, and extended the Business Condition Compliance Certificate after paying the fee into the state budget.

Chapter IV

FINANCIAL MANAGEMENT, ACCOUNTING REGIME,

 AUDITING AND REPORTING REGIME

Article 17. Principles of Accounting and Management of Revenue and Expenses

1. Enterprises operating electronic games with prizes must separately account for revenues, expenses, and profits related to the operation of electronic games with prizes and must separately track these items on accounting books and financial reports.

2. In cases where revenues and expenses related to the operation of electronic games with prizes are linked to other business activities of the enterprise, the enterprise must allocate these revenues and expenses according to their proportion of total revenues and expenses of general business operations and must register with the directly managing tax authority.

3. The enterprise has the responsibility to account for revenues and expenses in accordance with accounting standards and guidelines set out in this Circular.

4. The determination of revenues and expenses for declaration and calculation of taxes on the operation of electronic games with prizes shall be carried out in accordance with the current laws and guiding documents on taxation.

Article 18. Revenue

Revenue from the operation of electronic games with prizes includes:

1. Revenue from the operation of electronic game machines with prizes.

2. Financial revenue and other income from the operation of electronic games with prizes, implemented in accordance with the current accounting regime.

Article 19. Expenses

Operating expenses for electronic games with prizes include all costs serving the operation of electronic games with prizes as defined by the law on taxation, including:

1. Prize payout expenses are the actual amounts paid by the enterprise to winners participating in games on electronic game machines with prizes according to the rules of the game and the law on taxation.

2. Management lease expenses are implemented according to the management lease contract but must ensure that the total of all types of expenses related to management leasing do not exceed 4% of the revenue from the operation of electronic games with prizes.

3. Promotional expense expenses are implemented in accordance with Clause 3 of Article 28 of Decree No. 86/2013/ND-CP.

Article 20. Discount

The discount policy of enterprises operating electronic games with prizes as stipulated in Article 28 of Decree No. 86/2013/NĐ-CP shall be implemented as follows:

1. Eligible recipients for discounts: players purchasing virtual currency with a minimum value of 50,000 US dollars (USD) per transaction.

2. Enterprises are entitled to deduct revenue from taxation according to the tax laws. The method for determining the deductible tax is carried out in accordance with the tax laws.

3. Enterprises must register with the directly managing tax authority regarding their discount policies.

Article 21. Management of Cash and Virtual Currency at Warehouses, Cash Counters, and Electronic Games with Prizes Machines

1. Enterprises must establish and promulgate regulations on financial management rules, procedures for managing virtual currency, and organizational management ensuring separation between warehouses, cash counters, and electronic games with prizes machines.

2. Enterprises are only permitted to exchange cash and virtual currency for players before playing and return cash to players at cash counters, and must issue a Receipt for Currency Exchange according to the model specified in Appendix 09 attached hereto. The cashier department must specifically monitor the actual quantity of cash and virtual currency transactions during the period.

3. Enterprises must arrange specialized boxes (bags) to store cash and virtual currency. These boxes (bags) must be sealed before being taken out of the warehouse and immediately after being removed from electronic games with prizes machines.

4. The opening of seals on these boxes (bags) and the inventory and calculation of transactions at cash counters must be conducted at a specified time according to the financial management rules and virtual currency management procedures of the enterprise and must be confirmed through the following forms: Virtual Currency Withdrawal Form, Virtual Currency Deposit Form, Revenue Summary Form, and Cashier Settlement Form as specified in Appendices 07, 08, 10, and 11 attached hereto.

Article 22. Accounting System, Audit, and Financial Report Disclosure

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

2. The annual financial reports of enterprises operating electronic games with prizes must be audited by an independent auditing organization legally permitted to operate in Vietnam.

3. Within ninety (90) days from the end of the annual accounting period, enterprises operating electronic games with prizes must disclose financial reports as prescribed by law.

4. Enterprises implement the retention system for financial reports according to the Accounting Law. Specifically, for special declaration forms prescribed in this Circular, the minimum retention period is three (03) years to serve inspection and audit work by state management agencies.

Article 23. Reporting System

1. At the end of each accounting period (quarter, year), enterprises operating electronic games with prizes must prepare and submit financial reports and statistical reports as prescribed by law. The legal representative of the enterprise operating electronic games with prizes is responsible under the law for the accuracy and truthfulness of these reports.

2. In addition to the financial reports prepared according to the provisions of Clause 1 of this Article, quarterly and annually, enterprises operating electronic games with prizes must prepare and submit the following reports:

a) Report on the number and types of machines and game formats of electronic games with prizes according to the model specified in Appendix 12 attached hereto;

b) Report on the situation of purchasing, using, re-exporting, or destroying equipment of electronic games with prizes according to the model specified in Appendix 13 attached hereto;

c) Report on the business operation situation of electronic games with prizes according to the model specified in Appendix 14 attached hereto.

3. Time limit and place of submission of reports:

a) Financial reports prepared according to the legal provisions specified in Clause 1 of this Article must be submitted to the Ministry of Finance, Provincial Department of Finance, Provincial Department of Culture, Sports and Tourism, and Local Tax Authority within fifteen (15) working days from the end of the annual accounting period;

b) Reports specified in Clause 2 of this Article must be submitted to the Ministry of Finance, Provincial Department of Finance, Provincial Department of Culture, Sports and Tourism, and Local Tax Authority within fifteen (15) working days from the end of the accounting period (quarter, year).

4. In case the Ministry of Finance or the People's Committee of a province or centrally governed city requests the preparation of ad hoc reports, enterprises operating electronic games with prizes must prepare and submit such reports according to the request.

Chapter V

RESPONSIBILITIES OF ORGANIZATIONS

Article 24. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government Direct Control

Responsible for managing, supervising, inspecting, and directing relevant agencies under their jurisdiction to implement management, supervision, and inspection work to ensure that the operation of electronic games with prizes in their area complies fully and correctly with the provisions of Decree No. 86/2013/NĐ-CP and related laws as prescribed in this Circular.

Article 25. Responsibilities of the Department of Finance

Shall be responsible for managing, supervising, inspecting, and leading the advisory work to assist the People's Committee of the province or centrally governed city in managing, supervising, and inspecting the operation of electronic game machines with rewards within their jurisdiction in accordance with Decree No. 86/2013/NĐ-CP, this Circular, and related legal provisions.

Article 26. Responsibilities of the Local Tax Authority

1. Shall cooperate with the Department of Finance and relevant agencies in managing, supervising, and inspecting the operation of electronic game machines with rewards within their jurisdiction in accordance with Decree No. 86/2013/NĐ-CP, this Circular, and related legal provisions.

2. Shall be responsible for managing, inspecting, and auditing the implementation of tax obligations and fees by enterprises operating electronic game machines with rewards in accordance with the law.

Article 27. Responsibilities of manufacturers, suppliers of electronic game machines with rewards, and independent testing organizations

Enterprises producing, supplying machines and equipment for electronic game machines with rewards, and independent testing organizations providing testing services for such machines when supplying machines, equipment, and testing services for electronic game machines with rewards in accordance with this Circular shall be responsible for complying with legal regulations governing the operation of electronic game machines with rewards as stipulated in Decree No. 86/2013/NĐ-CP, this Circular, and related legal provisions.

Article 28. Responsibilities of enterprises operating electronic game machines with rewards

1. Shall comply with legal regulations governing the operation of electronic game machines with rewards as stipulated in Decree No. 86/2013/NĐ-CP, this Circular, and other related legal provisions.

2. Shall be responsible for establishing and promulgating internal management rules and procedures ensuring transparency, honesty, and compliance with legal regulations in the operation of electronic game machines with rewards.

Chapter VI

IMPLEMENTATION

Article 29. Transitional Provisions

1. Enterprises as specified in Clause 1, Article 51 of Decree No. 86/2013/NĐ-CP are permitted to continue operating electronic game machines with rewards purchased and currently in operation before the effective date of this Circular until they replace them with new machines. Electronic game machines with rewards purchased from the effective date of this Circular must comply with the provisions of Articles 9 and 10 of this Circular.

2. Within one (01) year from the effective date of this Circular, enterprises as specified in Clause 1, Article 51 of Decree No. 86/2013/NĐ-CP must adjust the payout ratio of currently operated electronic game machines with rewards to comply with the provisions of Point d, Clause 3, Article 10 of this Circular and must undergo re-testing procedures before putting the machines back into service.

Article 30. Implementation

This Circular takes effect from March 15, 2014.

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./.