Circular No. 39/2022/TT-BTC guiding certain provisions of Government Decree No. 121/2021/NĐ-CP dated December 27, 2021 on operating electronic games with rewards for foreigners.

CIRCULAR

Guidelines for certain provisions of Decree No. 121/2021/NĐ-CP dated December 27,

2021 of the Government on operating electronic games with rewards for foreigners

for foreigners

                                 

Pursuant to Decree No. 121/2021/NĐ-CP dated December 27, 2021 of the Government on Foreigner-Focused Electronic Game Business with Prizes;

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 to provide guidelines for certain provisions of Decree No. 121/2021/NĐ-CP dated December 27, 2021 of the Government on operating electronic games with rewards for foreigners.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides guidelines on the management of agreed-upon currency; licensing fees; financial regulations; discounts; accounting systems and reporting as stipulated in Clause 2 Article 12, Article 27, Clause 2 Article 35, Clause 4 Article 36, and Article 37 of Decree No. 121/2021/NĐ-CP dated December 27, 2021 of the Government on operating electronic games with rewards for foreigners (hereinafter referred to as Decree No. 121/2021/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. State administrative agencies responsible for issuing licenses, managing, supervising, inspecting, and auditing the operation of electronic games with rewards for foreigners.

4. Other organizations and individuals related to the operation of electronic games with rewards for foreigners.

Chapter II

SPECIFIC PROVISIONS

Article 3. Management of Agreed-Upon Currency

1. At least five working days before introducing agreed-upon currency into business operations, the enterprise must notify in writing about the form, design, quantity, and type of agreed-upon currency to the Department of Finance and the local tax authority directly managing the area for monitoring and management.

2. The enterprise has the right to temporarily suspend the use of agreed-upon currency based on management needs. At least five working days before suspending the use of agreed-upon currency, the enterprise must notify in writing the Department of Finance and the local tax authority directly managing the area for monitoring and management. The notification must clearly state the suspension date, reasons for suspension, and the expected time for resuming use. In case there is a change in the resumption date, the enterprise must notify again in writing to these authorities.

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 agreed-upon currency purchased, re-exported, or destroyed by the enterprise, detailed by each denomination and foreign currency type, purchase date, re-export date, or destruction date, name of manufacturer or supplier (if applicable);

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

Article 4. Management of Cash and Agreed-Upon Currency at Warehouses, Cash Counters, and Electronic Game Machines with Rewards

1. The enterprise must establish and issue regulations on financial management rules, procedures for managing agreed-upon currency, and organize management to ensure separation between warehouses, cash counters, and electronic game machines with rewards.

2. The enterprise is only allowed to exchange cash and agreed-upon currency for players before playing and return cash to players at the cash counter and must issue a Currency Exchange Invoice according to the model specified in Appendix No. 01 issued together with this Circular. The cashier department must specifically track the actual amount of cash and agreed-upon currency transactions during the period.

3. The enterprise must arrange specialized boxes (bags) to store cash and agreed-upon currency. These boxes (bags) must be sealed before being taken out of the warehouse and immediately after being taken out of the electronic game machine with rewards.

4. Opening seals on boxes (bags) and inventory counting and transaction calculations at the cash counter must be carried out at a specific time as stipulated in the financial management rules and agreed-upon currency management procedures of the enterprise and must be confirmed through the following invoice and document models: Agreed-Upon Currency Outbound Note, Agreed-Upon Currency Inbound Note, Revenue Summary Sheet, and Cashier Settlement Note as specified in Appendices No. 02, 03, 04, and 05 issued together with this Circular.

Article 5. Licensing Fees

1. The fee for examining and issuing, renewing the Business Condition Certificate of enterprises is 150,000,000 VND.

2. The fee for examining reissuing, amending the Business Condition Certificate of enterprises is 5,000,000 VND.

3. The examination fees for issuing, reissuing, amending, and renewing the Business Condition Certificate as stipulated in Clause 1 and Clause 2 of this Article are revenue belonging to the central budget.

4. After examining and determining that enterprises meet the conditions for issuance, reissuance, amendment, and renewal of the Business Condition Certificate, the Ministry of Finance shall notify enterprises to pay the examination fees according to the provisions of the law.

5. Upon receiving the notification from the Ministry of Finance, enterprises are responsible for paying the fees into the state budget according to the current State Budget Revenue and Expenditure Classification as prescribed in Circular No. 328/2016/TT-BTC dated December 26, 2016 of the Ministry of Finance on collection and management of state budget revenues through the National Treasury and other replacement, amended, and supplemented documents (if any), and submit one (01) copy of the payment receipt to the Ministry of Finance. Enterprises can only be issued, reissued, amended, and renewed the Business Condition Certificate after paying the fees into the state budget.

Chapter III

FINANCIAL MANAGEMENT, ACCOUNTING REGIME, AUDITING

AND REPORTING REGIME

Article 6. Principles of Accounting and Management of Revenue and Expenses

1. Enterprises are responsible for accounting for revenues and expenses in accordance with accounting standards and guidelines set out in this Circular.

2. Enterprises engaged in electronic games with prizes must separately account for revenues, expenses, and profits related to the operation of electronic games with prizes and track these items separately in their accounting books and financial reports. In cases where separate accounting for revenues from the operation of electronic games with prizes cannot be done, all such revenues will be considered as revenues from the operation of electronic games with prizes and will be subject to special consumption tax.

3. The determination of revenues, expenses, other income, and related tax matters concerning the operation of electronic games with prizes shall be carried out in accordance with the provisions of tax laws.

Article 7. Revenues

1. Revenues from the operation of electronic games with prizes include:

a) Direct revenues from the operation of electronic games with prizes are the total amount of money received from exchanging virtual currency for players and the money collected at gaming machines with prizes, minus the amount refunded to players due to winning or not using up the virtual currency.

b) Financial activity revenues and other income generated from the operation of electronic games with prizes as prescribed by the current accounting regime.

2. The discount policy of enterprises operating electronic games with prizes as stipulated in Article 35 of Decree No. 121/2021/NĐ-CP is implemented as follows:

a) The eligible recipients of discounts are players purchasing virtual currency with a minimum value of 50,000 USD per transaction.

b) Enterprises may deduct the revenue subject to taxation according to the tax law regulations. The method for determining the tax deduction is carried out according to the tax law regulations.

c) Enterprises must notify the directly managing tax authority about the discount policy.

Article 8. Costs

1. Operating costs for electronic games with prizes are the total costs serving the operation of electronic games with prizes as defined by the law. In cases where operating costs for electronic games with prizes are associated with other business operations of the enterprise, the enterprise shall allocate costs based on the percentage ratio between revenues from the operation of electronic games with prizes and the total revenues of the enterprise.

2. Prize payout costs are the actual amounts paid by the enterprise to winners participating in games on gaming machines with prizes according to the Game Rules and tax law regulations.

Article 9. Accounting and Auditing System

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

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. Enterprises shall implement the retention system for financial reports in accordance with the Accounting Law and any amendments, supplements, or replacements thereof (if any). Specifically, for the forms prescribed in Appendices 01, 02, 03, 04, and 05 issued together with this Circular, the minimum retention period is five years to serve the inspection and audit work of state management agencies.

Article 10. Reporting System

1. Regarding Financial Reports

a) Enterprises operating electronic games with prizes must prepare the financial report as stipulated in Clause 2 of Article 9 of this Circular and submit it to the Ministry of Finance, Provincial Department of Finance, and Local Tax Authority within ninety days from the end of the fiscal year.

b) Within one hundred twenty days from the end of the fiscal year, enterprises operating electronic games with prizes must publicly disclose their financial reports in accordance with the law.

2. Regarding Business Reports

a) Quarterly and annually, enterprises operating electronic games with prizes must prepare and submit the following business reports:

- Report on the quantity and types of machines and forms of electronic games with prizes according to the form prescribed in Appendix 06 issued together with this Circular;

- Report on the situation of purchasing, using, re-exporting, or destroying equipment of electronic game machines with prizes according to the form prescribed in Appendix 07 issued together with this Circular;

- Report on the operation of electronic games with prizes according to the form prescribed in Appendix 08 issued together with this Circular.

b) Time frame for finalizing report data

- For quarterly periodic reports: From the first day of the first month of the quarter to the last day of the last month of the quarter in the reporting period;

- For annual periodic reports: From January 1 to December 31 of the reporting year.

c) Deadline for submitting reports and place of receipt

The business reports prescribed in point a of this clause must be submitted 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 Authority within fifteen days from the end of the accounting period (quarter, year). The legal representative of enterprises operating electronic games with prizes is responsible under the law for the accuracy and truthfulness of these reports.

3. In addition to the reports prescribed in Clauses 1 and 2 of this Article, enterprises operating electronic games with prizes must prepare and submit ad hoc reports to the Ministry of Finance upon request for management.

4. Method of submitting reports

a) Directly in paper form;

b) Through postal service in paper form;

c) Submission via email system or specialized information reporting software system;

d) Other methods as prescribed by law.

Chapter IV

RESPONSIBILITIES OF ORGANIZATIONS

Article 11. Responsibilities of the Provincial Department of Finance

Shall be responsible for managing, supervising, inspecting, and leading in advising the People's Committee of the province or centrally governed city in managing, supervising, and inspecting the operation of electronic games with prizes within their jurisdiction in accordance with Decree No. 121/2021/NĐ-CP, this Circular, and related laws.

Article 12. Responsibilities of the Local Tax Department

1. Coordinate with the Department of Finance and relevant agencies in managing, supervising, and inspecting the operation of electronic games with prizes within their jurisdiction in accordance with Decree No. 121/2021/NĐ-CP, the provisions of this Circular, and related legal regulations.

2. Be responsible for managing, inspecting, and auditing the fulfillment of tax and fee obligations by enterprises operating electronic games with prizes in accordance with the law.

Article 13. Responsibilities of enterprises operating electronic games with prizes

1. Comply with legal regulations governing the operation of electronic games with prizes as stipulated in Decree No. 121/2021/NĐ-CP, the provisions of this Circular, and other relevant legal regulations.

2. Be responsible for establishing and promulgating internal management rules and procedures to ensure transparency, honesty, and compliance with legal regulations in the operation of electronic games with prizes.

Chapter V

IMPLEMENTATION

Article 14. Implementation clause

1. This Circular takes effect from August 8, 2022.

2. This Circular replaces the following documents:

a) Circular No. 11/2014/TT-BTC dated January 17, 2014, issued by the Ministry of Finance guiding certain provisions of Decree No. 86/2013/NĐ-CP dated July 29, 2013, of the Government on the operation of electronic games with prizes for foreigners;

b) Circular No. 57/2017/TT-BTC dated June 2, 2017, issued by the Ministry of Finance amending and supplementing certain provisions of Circular No. 11/2014/TT-BTC dated January 17, 2014, issued by the Ministry of Finance guiding certain provisions of Decree No. 86/2013/NĐ-CP dated July 29, 2013, of the Government on the operation of electronic games with prizes for foreigners.

3. This Circular abolishes Article 8 of Circular No. 84/2020/TT-BTC dated October 1, 2020, issued by the Ministry of Finance amending and supplementing regulations on periodic reporting within the authority of the Minister of Finance in the field of financial banking.

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