Circular No. 138/2017/TT-BTC guiding certain specific expense items for lottery businesses as stipulated in Decree No. 122/2017/NĐ-CP dated November 13, 2017 of the Government on some special contents regarding financial management mechanisms and assessment of business performance for lottery businesses; Securities Trading Exchanges and Vietnam Securities Depository.

CIRCULAR

GUIDANCE ON CERTAIN SPECIAL EXPENSES FOR LOTTERY BUSINESS ENTERPRISES AS PROVIDED IN DECREE NO. 122/2017/ND-CP OF THE GOVERNMENT DATED NOVEMBER 13, 2017 ON SOME SPECIAL PROVISIONS REGARDING FINANCIAL MANAGEMENT MECHANISMS AND EFFECTIVENESS ASSESSMENT OF OPERATIONS FOR LOTTERY BUSINESS ENTERPRISES; SECURITIES EXCHANGE CORPORATION AND VIETNAM SECURITIES DEPOSITORY.

Pursuant to the Law on Corporate Income Tax No. 14/2008/QH12 dated June 3, 2008 and Law No. 32/2013/QH13 dated June 19, 2013 amending and supplementing certain articles of the Law on Corporate Income Tax;

Pursuant to Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business and Decree No. 78/2012/NĐ-CP dated October 5, 2012 of the Government amending and supplementing certain articles of Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business;

Pursuant to Decree No. 91/2015/NĐ-CP dated October 13, 2015 of the Government on investment of state capital in enterprises and management and use of capital and assets in enterprises;

Pursuant to Decree No. 122/2017/NĐ-CP dated November 13, 2017 of the Government providing some special provisions regarding financial management mechanisms and effectiveness assessment of operations for lottery business enterprises; Securities Exchange Corporation and Vietnam Securities Depository;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of 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 guiding certain special expenses for lottery business enterprises as provided in Decree No. 122/2017/NĐ-CP dated November 13, 2017 of the Government providing some special provisions regarding financial management mechanisms and effectiveness assessment of operations for lottery business enterprises; Securities Exchange Corporation and Vietnam Securities Depository (hereinafter referred to as Decree No. 122/2017/NĐ-CP).

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the level of expenditure for certain special expenses for lottery business enterprises as provided in Decree No. 122/2017/NĐ-CP dated November 13, 2017 of the Government providing some special provisions regarding financial management mechanisms and effectiveness assessment of operations for lottery business enterprises; Securities Exchange Corporation and Vietnam Securities Depository (hereinafter referred to as Decree No. 122/2017/NĐ-CP).

Article 2. Applicability

1. Lottery business enterprises include Limited Liability Companies for State Lottery established by People's Committees of provinces and centrally-administered cities and Limited Liability Company for Vietnam National Lottery (hereinafter referred to as Vietlott).

2. The representative body of the owner of lottery business enterprises.

3. Other organizations and individuals related to the financial management mechanism of lottery business enterprises.

Chapter II

LEVEL OF EXPENDITURE FOR CERTAIN SPECIAL EXPENSES FOR LOTTERY BUSINESS ENTERPRISES

Article 3. Level of expenditure for agent commissions for lottery agents

1. Lottery business enterprises shall be responsible for paying agent commissions to lottery agents in accordance with Clause 2, Article 5 of Decree No. 122/2017/NĐ-CP.

2. The level of expenditure for agent commissions shall be determined by lottery business enterprises, ensuring that it does not exceed 15% of the revenue from operating permitted types of lotteries including value-added tax and special consumption tax.

Article 4. Level of expenditure for proxy payment fees for lottery agents

1. Lottery business enterprises shall be responsible for paying proxy payment fees to lottery agents in accordance with Clause 3, Article 5 of Decree No. 122/2017/NĐ-CP.

2. The maximum level of expenditure for proxy payment fees for lottery agents shall not exceed 0.2% of the total prize value that lottery agents have paid according to the proxy arrangement.

Article 5. Level of expenditure for supporting work to prevent and combat lottery fraud and counterfeit tickets

1. Based on actual circumstances, the lottery business enterprise shall submit to the representative body of the owner for approval the level of expenditure for supporting work to prevent and combat lottery fraud and counterfeit tickets, ensuring compliance with the objects and principles of expenditure prescribed in Clause 5, Article 5 of Decree No. 122/2017/NĐ-CP and not exceeding the maximum level of expenditure prescribed in Clause 2, Clause 3, and the total expenditure for preventing and combating lottery fraud and counterfeit tickets stipulated in Clause 4 of this Article.

2. The level of expenditure for cases that have been adjudicated by the People's Court shall be a maximum of VND 50 million per case.

3. The level of expenditure for cases that have been decided on administrative violations and fines paid by the violator shall be a maximum of 50% of the amount of the administrative violation fine but not exceeding VND 15 million per case.

4. The total level of expenditure for preventing and combating lottery fraud and counterfeit tickets prescribed in Clause 2 and Clause 3 of this Article in the fiscal year shall be implemented according to the following principle:

a) Not exceeding 1% of revenue from operating permitted lottery types including value-added tax and special consumption tax for lottery enterprises in the Northern and Central regions;

b) Not exceeding 0.1% of revenue from operating permitted lottery types including value-added tax and special consumption tax for lottery enterprises in the Southern region and Vietlott.

Article 6. Level of expenditure for contributing to the activities of the Regional Lottery Council

1. The lottery business enterprise and the Regional Lottery Council shall be responsible for implementing and managing the expenditure for contributing to the activities of the Regional Lottery Council in accordance with Clause 9, Article 5 of Decree No. 122/2017/NĐ-CP.

2. The level of expenditure for contributing to the activities of the Regional Lottery Council of each lottery business enterprise shall be determined by the Regional Lottery Council through agreements of each Regional Lottery Council, ensuring a maximum not exceeding VND 60 million per year (VND 5 million per month) for each council. This contribution does not include expenses for prize payouts, draw expenses, and printing costs for traditional lottery tickets issued by the Regional Lottery Council under the joint issuance mechanism.

Chapter III

RESPONSIBILITIES OF RELATED AUTHORITIES

Article 7. Responsibilities of the lottery business enterprise

1. Adhere to the regulations on levels of expenditure for certain specific expense items as prescribed in this Circular and relevant laws.

2. Be subject to inspection, examination, and supervision by competent state management agencies in accordance with the law.

Article 8. Responsibilities of the Department of Finance

1. Coordinate with related units to assist provincial People's Committees and municipal People's Committees directly under the central government in supervising, inspecting, and auditing lottery business enterprises in accordance with Decree No. 122/2017/NĐ-CP, the provisions of this Circular, and relevant laws.

2. Assist provincial People's Committees and municipal People's Committees directly under the central government in approving the level of expenditure for supporting work to prevent and combat lottery fraud and counterfeit tickets in accordance with Decree No. 122/2017/NĐ-CP, the provisions of this Circular, and relevant laws.

Chapter IV

IMPLEMENTATION

Article 9. Implementation Organization

1. This Circular takes effect from February 10, 2018, and applies from the fiscal year 2018.

2. Repeal Circular No. 01/2014/TT-BTC dated January 2, 2014, of the Ministry of Finance guiding financial management regulations for lottery business enterprises.

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