Circular No. 131/2009/TT-BTC Amending and Supplementing Certain Provisions of Circulars No. 65/2007/TT-BTC dated June 18, 2007 and No. 112/2007/TT-BTC dated September 19, 2007 of the Ministry of Finance.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 65/2007/TT-BTC

dated June 18, 2007 and Circular No. 112/2007/TT-BTC dated September 19, 2007

of the Ministry of Finance

__________________________

Pursuant to Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business;

Pursuant to Decree No. 09/2009/NĐ-CP dated February 5, 2009 of the Government promulgating the Financial Management Regulations for State-Owned Enterprises and the Management of State Capital Invested in Other Enterprises;

Pursuant to Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing a number of articles of the Law on Corporate Income Tax;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance guides the amendment and supplementation of certain provisions of Circular No. 65/2007/TT-BTC dated June 18, 2007 of the Ministry of Finance guiding in detail Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business and Circular No. 112/2007/TT-BTC dated September 19, 2007 of the Ministry of Finance guiding the financial management regime for Lottery Companies as follows:

1. Amending Clause 2.4, Section 2, Part I as follows:

            "The period of debt is the time during which lottery agents must complete the payment of ticket purchase money for instant scratch-off lottery tickets and instant peel-off lottery tickets.

- Payment of ticket purchase money for traditional lottery tickets and Lotto lottery tickets in each batch of tickets received from the Lottery Company."

- Payment for tickets consumed shall be made to the Lottery Company for traditional lottery and Toto lottery in each batch of ticket receipt.

2. Supplementing Clause 2.5 into Section 2, Part I as follows:

"In this Circular, the Regional Lottery Council refers to the Regional Lottery Council implementing the joint issuance of traditional lottery tickets according to the regulations of the Ministry of Finance."

3. Amending Clause 1.1, Section 1, Part II as follows:

"1.1. Lottery Business Area

The lottery business area is defined as follows:

1.1.1. For the Central and Southern regions.

a) Traditional lottery tickets, instant scratch-off lottery tickets, and instant peel-off lottery tickets are issued and sold within the respective regional areas, specifically:

- Central region, including provinces and cities from Quang Binh to Ninh Thuan, Dak Nong.

- Southern region, including provinces and cities from Binh Thuan, Lam Dong, and Binh Phuoc onwards.

b) Lotto lottery tickets are issued and sold within the administrative boundaries of each province and centrally-administered city.

1.1.2. For the Northern region, including provinces from Ha Tinh northwards.

a) Traditional lottery tickets are issued through regional linkage (one set of tickets printed for the entire region) and distributed among Lottery Companies based on market demand to be sold within the administrative boundaries of each province and centrally-administered city.

b) Lotto lottery tickets, instant scratch-off lottery tickets, and instant peel-off lottery tickets are issued and sold within the administrative boundaries of each province and centrally-administered city."

4. Amending Subparagraph a, g, Point 1.3.1, Clause 1.3, Section 1, Part II as follows:

"1.3.1. The Lottery Company and the Regional Lottery Council have the right to decide on the form and size of lottery tickets. Lottery tickets must contain the following information:

a) Name of the issuing company or the linked regional issuing entity.

g) Other information to serve participants in the lottery draw, including: prize structure; conditions for claiming prizes; claim address or other necessary information as required by the Lottery Company and the Regional Lottery Council."

5. Amending Point 1.3.2, Clause 1.3, Section 1, Part II as follows:

"1.3.2. The quantity of tickets issued in each batch is determined by the Lottery Company and the Regional Lottery Council in accordance with consumption capacity, market demand, management capability, and ensuring efficiency in business operations.

In cases where the Ministry of Finance has regulations on the limit of the number of tickets issued, their value, or minimum sales ratio, the printing and issuance of tickets by Lottery Companies and Regional Lottery Councils must comply with relevant state regulations at the time of implementation."

6. Amending Subparagraph a, Point 1.3.4, Clause 1.3, Section 1, Part II as follows:

"a) The printing facility for lottery tickets must be listed in the register of printing units registered with the tax authority (General Department of Taxation; Provincial and Municipal Tax Departments under the central government). The Lottery Company and the Regional Lottery Council must select printing facilities that meet the requirements of equipment and printing technology to ensure that lottery tickets are printed in accordance with management requirements for each type of lottery product.

For the printing of instant scratch-off lottery tickets, the printing facility must have specialized equipment and software to randomly allocate prizes. The prize allocation software must have a security code system to prevent unauthorized access and modification. The entire process of prize printing must be recorded and stored on a separate device, ensuring confidentiality and only accessible upon written request from the Lottery Company ordering the print and authorized representatives of the printing facility. The secure code is jointly established and decoded by the Lottery Company ordering the print and the printing facility to control winning tickets."

7. Supplementing Point 1.3.5, Clause 1.3, Section 1, Part II is amended as follows:

"1.3.5. Lottery companies are permitted to organize the printing or contract for the printing of lottery tickets for distribution to customers. For regional lottery councils organizing joint lottery ticket printing, the selection of printing facilities shall be carried out through public bidding.

The regional lottery council shall unify and decide on the criteria for selecting printing facilities, appoint representatives to participate in the bid evaluation team, and authorize the Lottery Company to sign contracts with printing facilities."

8. Amend Point 1.6.2, Clause 1.6, Section 1, Part II as follows:

"a) The number of prize categories, the structure of each prize within the total value of prizes is decided by the Lottery Company or the Regional Lottery Council within the prescribed payout ratio. The value of prizes paid to customers is determined according to a fixed payout method including:

- A specific amount of money is predetermined for the prize.

- A certain multiple (calculated using arithmetic progression) of the amount of money that the customer has participated in the draw is predetermined for the prize.

b) In cases where the Ministry of Finance stipulates the ratio of the special prize value to the total prize value, the allocation of the special prize value in the prize structure of the Lottery Company and the Regional Lottery Council must be implemented in accordance with the regulations of the Ministry of Finance."

9. Amend Clause 1.7, Section 1, Part II as follows:

The Lottery Company or the Regional Lottery Council must establish and publicly announce the rules for participating in the draw so that customers are aware when participating in the draw. The rules for participating in the draw include the following main contents:

1.7.1. Conditions for participating in the draw.

1.7.2. Methods for participating in the draw.

1.7.3. Methods for determining the winning results.

1.7.4. Number of prizes, prize structure.

1.7.5. Responsibilities and rights of the Lottery Company, the Regional Lottery Council, and participants in the draw.

The rules for participating in the draw are established for each type of lottery product.

10. Amend Item a, Point 1.11.1, Clause 1.11, Section 1, Part II as follows:

"a) For traditional lotteries and Lotto: Maximum not exceeding 28 days (4 weeks), from the date of receiving sold tickets. The debt of agents is determined based on the value of tickets consumed during the period." 

11. Amend Point 2.1.1, Clause 2.1, Section 2, Part II as follows:

"2.1.1. The schedule for opening traditional lottery draws of each Lottery Company and Regional Lottery Council is regulated by the Ministry of Finance for each period."

12. Amend Point 3.5.2, Clause 3.5, Section 3, Part II as follows:

"3.5.2. Delegation of prize payment must meet the following requirements:

a) Only delegate payment of prizes up to the first prize, the Lottery Company has the right to decide the value of delegated prize payments based on the capacity of each lottery agent.

b) Delegation must be reflected in the agency contract signed between the Lottery Company and the lottery agent.

c) The agent accepting delegation must bear responsibility for the accuracy and honesty of the winning tickets that have been paid out and may not charge any fees from winning customers. The agent bears full responsibility under the law if there are complaints from customers regarding the collection of fees from winning customers.

d) The Lottery Company has the right to inspect agents in the implementation of delegated prize payments. If it is found that the agent does not comply with the legal regulations and the signed contract regarding delegated prize payments, the Lottery Company has the right to terminate the delegation of prize payments by the agent."

13. Amend Point 4.3.3, Clause 4.3, Section 4, Part II as follows:

"4.3.3. The retention period for various types of tickets and stubs specified in Point 4.3.1 above is a minimum of 7 days, from the date the redemption period for the lottery ticket expires.

For tickets involving disputes or complaints, the retention period must continue beyond the prescribed period until the final resolution is concluded."

1. Amend paragraph a, e, Point 2.1, Clause 2, Section B, Part II as follows:

“a) Prize payment expenses for winning tickets: The Lottery Construction Company or the Regional Lottery Council shall establish the prize structure according to the regulations of the Ministry of Finance for each type of lottery. Prize payment expenses are the actual prize payments made to winners according to the prize payment regulations for each type of lottery.

For traditional lotteries issued through regional joint issuance, prize payment expenses include: the actual prize payments made to winners for prizes within the responsibility of the Lottery Construction Company to pay out on its own; the actual prize payments made to winners for prizes within the shared responsibility of the entire Regional Lottery Council, allocated according to the ratio determined by the Regional Lottery Council.”

“e) Expenses for lottery tickets: These expenses include printing costs based on the actual payment price with the printing facility, transportation, loading and unloading, storage, legitimate surcharges (if any), or contributions to common printing costs according to the regulations of the Regional Lottery Council based on economic contracts between the Lottery Construction Company and the printing facility.

In cases where the Lottery Construction Company prints its own tickets, printing costs are legitimate and reasonable actual expenses incurred and recorded as part of the company's general expenses.”

2. Amend the provision regarding the explanation of the formula for the risk reserve fund for prize payments at paragraph đ, Point 2.1, Clause 2, Section B, Part II as follows:

“TT: Total actual prize payment value paid to winners of each type of lottery as of December 31 of the Gregorian calendar year.

The actual prize payment value for traditional lotteries issued through regional joint issuance is the actual prize payment value paid to winners for prize categories within the responsibility of the Lottery Construction Company to pay out on its own and the portion of the actual prize payment value paid to winners for prize categories within the shared responsibility of the Regional Lottery Council, allocated according to the ratio among Lottery Construction Companies determined by the Regional Lottery Council.”

3. Amend the provision regarding the content of expenses at paragraph h, Point 2.1, Clause 2, Section B, Part II as follows:

“The content of expenses includes: expenses for inspection work, allowances for the Standing Board of the Council, labor costs for external workers hired for common Council tasks, meeting expenses, rewards for groups and individuals, and other expenses directly serving the common activities of the Council.”

4. Amend and supplement paragraph g, Point 2.2, Clause 2, Section B, Part II as follows:

“- Expenses for disaster relief and construction of houses of affection for the poor in accordance with the law.”

5. Amend Point 1.1, Clause 1, Section D, Part II as follows:

“1.1. Compensate for losses and damages to assets and unrecoverable debts arising during business operations after deducting compensation from related organizations, individuals, and insurance organizations.”

6. Supplement Point 1.3 into Clause 1, Section Đ, Part II as follows:

“1.3. Annual expenses of the Regional Lottery Council implementing joint issuance of traditional lotteries must be settled and an independent audit organization must conduct an audit to make public within the Regional Lottery Council.”

Article 3. Implementation.

1. This Circular takes effect from July 1, 2009.

2. Other provisions detailed in Circular No. 65/2007/TT-BTC dated June 18, 2007 of the Ministry of Finance guiding the detailed implementation of Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business and Circular No. 112/2007/TT-BTC dated September 19, 2007 of the Ministry of Finance guiding financial management regulations for Lottery Construction Companies remain effective.

3. During implementation, if there are difficulties, please report to the Ministry of Finance for research, amendment, and supplementation to ensure compliance.