Circular No. 57/2017/TT-BTC Amending and Supplementing Certain Articles of Circular No. 11/2014/TT-BTC dated January 17, 2014 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

Amending and supplementing certain articles of Circular No. 11/2014/TT-BTCdated June

January 1, 2014 guiding certain provisions pursuant to Decree No.

Decree No.86/2013/NĐ-CP July 29, 2013

of the Government on operating 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;

electronic games with prizes for foreigners;

Based on Decree No. 175/2016/NĐ-CP December 30, 2016 of the Government amending and supplementing certain provisions of Decree No. 86/2013/NĐ-CP July 29, 2013 of the Government on operating electronic games with prizes for foreigners;

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

The Minister of Finance issues this Circular amending and supplementing certain articles of Circular No. 11/2014/TT-BTC January 17, 2014 guiding certain provisions of Decree No. 86/2013/NĐ-CP July 29, 2013 of the Government on operating electronic games with prizes for foreigners.

PART I

GENERAL PROVISIONS

Article 1. Amending and supplementing certain articles of Circular No. 11/2014/TT-BTC January 17, 2014 guiding certain provisions of Decree No. 86/2013/NĐ-CP July 29, 2013 of the Government on operating electronic games with prizes for foreigners as follows:

1. Amend Article 1 as follows:

"Article 1. Scope of Regulation

This Circular guides certain provisions of Decree No. 86/2013/NĐ-CP July 29, 2013 of the Government on operating electronic games with prizes for foreigners (hereinafter referred to as Decree No. 86/2013/NĐ-CP) and Decree No. 175/2016/NĐ-CP December 30, 2016 of the Government amending and supplementing certain provisions of Decree No. 86/2013/NĐ-CP July 29, 2013 of the Government on operating electronic games with prizes for foreigners (hereinafter referred to as Decree No. 175/2016/NĐ-CP)."

2. Amend Article 3 as follows:

"Article 3. Business location

1. A business entity operating electronic games with prizes for foreigners (hereinafter referred to as the business entity) shall be responsible for arranging the business location for electronic games with prizes in accordance with the provisions of Article 5 of Decree No. 86/2013/NĐ-CP and Clause 2, Article 1 of Decree No. 175/2016/NĐ-CP.

2. The business entity must arrange electronic devices and surveillance cameras to monitor and supervise all activities at the business location continuously (24/24 hours), ensuring that the following key positions can be monitored:

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 from 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 period may be extended according to the requirements of competent state management agencies.

4. The business entity must establish a security monitoring and surveillance regulation for the business location, clearly defining the areas under security monitoring and surveillance, file storage areas, and individuals permitted to enter and exit the security monitoring and surveillance areas.

3. Amend Article 5 as follows:

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

1. The enterprise has the right to decide the actual number of electronic game machines with prizes operated but shall not exceed the maximum number of electronic game machines with prizes allowed for business as specified in the Business Condition Certificate or Clause 16, Article 1 of Decree No. 175/2016/NĐ-CP.

2. Based on the actual number of electronic game machines with prizes organized 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 according to the provisions set out in Appendix No. 01 issued together with this Circular.

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

4. During the course of business operations, the enterprise has the right to change the quantity, types of machines, forms of electronic games with prizes, and the ratio of electronic game machines with prizes, but must ensure compliance with the regulations on the quantity, types of machines, forms of electronic games with prizes, and the ratio of electronic game machines with prizes as stipulated in this Circular, Decree No. 175/2016/NĐ-CP, and relevant laws. In cases where there are changes in the quantity, types of machines, 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 be responsible for reporting in writing to the Ministry of Finance, Department of Finance, Department of Culture, Sports and Tourism, and the local Tax Office for monitoring and management.

4. Amending Clause 6 as follows:

"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.

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 tax authority directly managing the area for monitoring and management.

4. The enterprise has the right to temporarily suspend the use of the registered agreed currency with state management agencies as stipulated in Clause 3 of this Article based on management needs. At least five (05) working days prior to suspending the use of the agreed currency, the enterprise must notify in writing the relevant agencies. The notification must clearly state the suspension date of the agreed currency, reasons for suspension, and the expected time to resume use. If there are changes in the resumption date of the agreed currency, the enterprise must notify the relevant 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) Quantity and types of agreed currency purchased, re-exported, or destroyed by the enterprise, specifically detailed by each denomination and foreign currency type, purchase, re-export, or destruction date, name of the manufacturer, supplier (if any) for the agreed currency specified in point a and point b of Clause 1 of this Article;

c) Other contents as required by the enterprise's management.6. The purchase, re-export, or destruction of the agreed currency shall be carried out in accordance with Article 14 of Decree No. 86/2013/NĐ-CP, Clause 4, Article 1 of Decree No. 175/2016/NĐ-CP, Article 8 of this Circular, and relevant laws.

5. Amend Article 7 as follows:

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

1. Only enterprises that have been granted a Business Registration Certificate meeting the required conditions and those specified in Clause 16, Article 1 of Decree No. 175/2016/ND-CP shall be permitted to purchase spare parts for gaming machines with prizes for replacement when necessary as stipulated in Clause 3, Article 14 of Decree No. 86/2013/ND-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. The spare parts for gaming machines with prizes specified in Clause 2 of this Article must be brand new.

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 spare parts must ensure the following principles:

a) It does not affect the minimum prize payout ratio as prescribed in Clause 3, Article 1 of Decree No. 175/2016/ND-CP;

b) It does not increase the number of machines, types of machines, or forms of gaming machines with prizes permitted for operation."

6. Amend Article 12 as follows:

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

1. Enterprises meeting the conditions stipulated in Article 19 of Decree No. 86/2013/ND-CP and Clause 6, Article 1 of Decree No. 175/2016/ND-CP shall be considered for issuance of Business Registration Certificates meeting the required conditions. The documents, procedures, formalities, and review content for issuing Business Registration Certificates meeting the required conditions shall be carried out according to the provisions of Articles 20 and 21 of Decree No. 86/2013/ND-CP and Clauses 7 and 8, Article 1 of Decree No. 175/2016/ND-CP, wherein the Application for Issuance of Business Registration Certificate meeting the required conditions shall be in accordance with Form 03 attached hereto.

2. When considering the issuance of Business Registration Certificates meeting the required conditions for enterprises as specified in Clause 1 of this Article, the Ministry of Finance shall base on the actual number of guest rooms at tourist accommodation facilities currently operating to determine the number of gaming machines with prizes as stipulated in Clause 1, Article 7 of Decree No. 86/2013/ND-CP. 3. The Business Registration Certificate for Gaming Machines with Prizes issued by the Ministry of Finance shall be in accordance with Form 05 attached hereto."

7. Amend Article 13 as follows:

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

1. The application documents for reissuing Business Registration Certificates meeting the required conditions for cases specified in Clause 1, 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 or a copy accompanied by the presentation of the original for verification of the Investment Registration Certificate or Enterprise Registration Certificate issued by the competent state management agency and still valid;

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

2. Procedures for reissuing Business Registration Certificates meeting the required conditions Within fifteen (15) working days from the date of receiving complete and valid documents from the enterprise as stipulated in Clause 1 of this Article, the Ministry of Finance shall issue a Business Registration Certificate meeting the required conditions for the enterprise in accordance with Clause 1, Article 23 of Decree No. 86/2013/ND-CP. 3. The validity period of the reissued Business Registration Certificate shall be the remaining operational period as specified in the Business Registration Certificate issued, reissued, or adjusted at the nearest time point."

8. Amend Article 14 as follows:

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

1. The documents for requesting to amend the Business Condition Compliance Certificate in cases prescribed in Clause 2, 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 or a copy accompanied by the presentation of the original for verification of the Investment Registration Certificate or Enterprise Registration Certificate issued by the competent state management agency and still valid;

c) A certified true copy or a copy accompanied by the presentation of the original for comparison of the Business Condition Compliance Certificate;

d) Documents proving that the contents of the amendment to the Business Condition Compliance Certificate comply with the provisions of Clause 2, Article 23 of Decree No. 86/2013/ND-CP and relevant laws.

2. Procedure for amending the Business Condition Compliance Certificate Within thirty (30) working days from the date of receipt of complete and valid documents of the enterprise as stipulated in Clause 1 of this Article, the Ministry of Finance shall issue an amended Business Condition Compliance 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 Compliance Certificate is the remaining operating period specified in the Business Condition Compliance Certificate issued, reissued, or amended at the nearest time point.

9. Amend Article 15 as follows:

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

1. The documents for requesting to extend the Business Condition Compliance Certificate in cases prescribed in Clause 3, Article 23 of Decree No. 86/2013/ND-CP include:

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 true copy or a copy accompanied by the presentation of the original for comparison of the Business Condition Compliance Certificate which remains valid for at least six (06) months before submitting the application for extending the Business Condition Compliance Certificate;

c) The documents prescribed in Clauses 4, 5, 7, and 8, Article 20 of Decree No. 86/2013/ND-CP and Clause 7, Article 1 of Decree No. 175/2016/ND-CP;

d) A certified true copy or a copy accompanied by the presentation of the original for comparison of the minutes of the conclusion on meeting the business conditions by the inspection authority for periodic inspections as prescribed in Clause 12, Article 1 of Decree No. 175/2016/ND-CP and Point b, 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 Compliance Certificate, including: Maximum number of permitted electronic game machines, information about the business location (position, area), number and types of machines, actual types of electronic games with rewards being operated by the enterprise, business results of electronic games with rewards of the enterprise in the last three (03) years up to the submission of the application for extending the Business Condition Compliance Certificate (revenue, expenses, profit, and state budget payments) and compliance with related laws during the business period; - Projected business plan for the future, including: Number and types of machines, proposed types of electronic games with rewards to be allowed to operate, projected revenue, expenses, profit, projected foreign currency needs, security measures for the business location, requested extension period, implementation plan, and the enterprise's commitment to comply with related laws during the business period.

2. The procedure for extending the Business Condition Compliance Certificate shall be 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 documents in accordance with the conditions specified in Point b, Clause 3, Article 23 of Decree No. 86/2013/ND-CP.

10. Amend Article 16 as follows:

"Article 16. Fees for Issuing, Reissuing, Amending, and Extending the Business Condition Certificate

Clause 1. The fee for issuing and extending the Business Condition Certificate for enterprises is 150,000,000 VND.

Clause 2. The fee for reissuing and amending the Business Condition Certificate for enterprises is 20,000,000 VND.

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

Clause 4. After reviewing and determining that the enterprise meets the conditions for issuance, reissuance, amendment, and extension of the Business Condition Certificate, the Ministry of Finance shall notify the enterprise to pay the fee in accordance with the provisions of the law. Clause 5. Upon receipt of 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 Revenue Code pursuant to Circular No. 328/2016/TT-BTC dated December 26, 2016 of the Ministry of Finance guiding the 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. The enterprise will only be issued, reissued, amended, and extended the Business Condition Certificate after paying the fee into the state budget.

11. Amend Article 29 as follows:

"Article 29. Transitional Provisions

Enterprises regulated under Clause 16 of Article 1 of Decree No. 175/2016/NĐ-CP currently operating electronic game machines with rewards may continue to operate such machines in compliance with the laws of each period until they are replaced with new ones. In case of replacing new machines, it must be carried out in accordance with Decree No. 86/2013/NĐ-CP, Decree No. 175/2016/NĐ-CP, and this Circular.

Article 2. Abolish Article 9 and Article 10 of Circular No. 11/2014/TT-BTC dated January 17, 2014 guiding certain provisions of Decree No. 86/2013/NĐ-CP dated July 29, 2013 of the Government on operating electronic games with rewards for foreigners.

Article 3. Implementation Provisions

Clause 1. This Circular takes effect from July 17, 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./.