This circular supplements the guidance on the declaration and payment of business income tax for lottery ticket agency activities, specifically detailing the responsibilities of lottery companies in declaring and paying taxes on behalf of intermediary agencies and providing exemptions from taxation for certain direct retail agents with low income levels.
Scope of application
Lottery enterprises, general agents, first-level agents, wholesale lottery ticket agents (intermediary agents), and direct retail or street vendors selling lottery tickets.
Key points
- Lottery enterprises are responsible for declaring and paying business income tax on behalf of intermediary agents (Point 1).
- Lottery enterprises must report to the local Tax Department the commission rate applicable in their locality and carry out monthly declarations and payments of business income tax on behalf of intermediary agents (Point 1).
- Direct retail agents with average monthly income from commissions equivalent to the current minimum wage are exempted from paying business income tax (Point 2).
- Lottery enterprises must still declare and pay business income tax on behalf of intermediary agents even when direct retail agents have high sales volumes and commission incomes exceeding the minimum wage level (Point 2).
- The Provincial or Municipal Tax Department works with lottery enterprises to determine the portion of commissions received by direct retail agents for processing tax exemptions or collecting taxes as prescribed (Point 2).
🌐 Social impact of this document
- Lottery enterprises and intermediary agents must fulfill their responsibilities in declaring and paying business income tax on behalf of lottery ticket selling agents.
- Direct retail agents with low incomes are exempt from paying business income tax, reducing operational costs.
- Lottery enterprises and the Tax Department must closely cooperate to accurately determine the commissions received by agents and apply the correct tax regulations.
❓ Frequently asked questions
What responsibilities do lottery enterprises have in declaring and paying business income tax?
Lottery enterprises must declare and pay business income tax on behalf of intermediary agents directly contracted with the enterprise under economic agreements.
Are direct retail agents with low incomes exempt from paying business income tax?
Direct retail or street vendors selling lottery tickets with average monthly income from commissions equivalent to the current minimum wage are exempted from paying business income tax.
What about direct retail agents with high sales volumes and higher commission incomes than the minimum wage level?
Direct retail agents with high sales volumes and commission incomes exceeding the minimum wage must pay business income tax as prescribed.
What responsibilities does the Provincial or Municipal Tax Department have?
The Provincial or Municipal Tax Department works with lottery enterprises to determine the portion of commissions received by lottery ticket selling agents and the amount of business income tax due.
When does this circular take effect?
This circular takes effect 15 days after its issuance date.
Full text
CIRCULAR
OF THE MINISTRY OF FINANCE NUMBER 64/TT/BTC DATED MAY 14, 1998
GUIDING ADDITIONAL PROVISIONS TO CIRCULAR NO. 97-TT/TCT OF THE MINISTRY OF FINANCE ON DECEMBER 30, 1995 REGARDING BUSINESS INCOME TAX FOR LOTTERY TICKET DISTRIBUTION ACTIVITIES
DESIGNATED LOTTERY TICKET SELLER
Pursuant to Decree No. 96/CP dated December 27, 1995 of the Government detailing the implementation of the Business Income Tax Law and the Law Amending and Supplementing Certain Provisions of the Business Income Tax Law;
To align with the current organizational structure and operations of the lottery ticket distribution system, the Ministry of Finance supplements Circular No. 97/TC/TCT dated December 30, 1995 of the Ministry of Finance guiding the implementation of Decree No. 96/CP dated December 27, 1995 of the Government detailing the implementation of the Business Income Tax Law and the Law Amending and Supplementing Certain Provisions of the Business Income Tax Law as follows:
1- Add to Point 2d, Part C of Circular No. 97/TC/TCT dated December 30, 1995 of the Ministry of Finance guiding the declaration and payment of business income tax by lottery ticket distribution agencies as follows:
The lottery company is responsible for declaring and paying on behalf of business income tax calculated based on commissions received for general agents, first-level agents, and wholesale lottery ticket sellers (hereinafter collectively referred to as intermediary agents) who directly sign economic contracts with the company to act as lottery ticket distributors.
Lottery companies shall base their declarations on the commission rates for lottery ticket sales set by the Ministry of Finance, report these rates to the local tax authority where they are headquartered. The provincial or municipal tax bureau will verify and determine the portion of commissions received and the business income tax due from intermediary agents. Monthly, the lottery company must declare and pay on behalf of business income tax for intermediary agents before paying them their commission.
2- Add to Point 1, Section 1, Part D of Circular No. 97-TC/TCT dated December 30, 1995 of the Ministry of Finance as follows:
For direct retail and street vendors selling lottery tickets with monthly income (revenue - expenses) from average ticket sales commissions equivalent to the current minimum wage stipulated in Clause 1, Article 11 of Decree No. 96/CP dated December 27, 1995 of the Government shall be exempted from business income tax.
For direct retail sellers with large volumes of ticket sales and monthly income from lottery ticket commissions exceeding the current minimum wage stipulated, they must pay business income tax as prescribed. In this case, the lottery company still has to declare and pay on behalf of business income tax for intermediary agents as specified in Point 1 of this Circular.
The provincial or municipal tax bureau under the central government and the local lottery company have the responsibility to cooperate in determining the portion of commissions allocated to direct retail sellers and street vendors selling lottery tickets during each period to handle exemptions from taxation or proper taxation according to regulations.
3- This circular takes effect 15 days after its issuance. During implementation, if there are difficulties or issues, please promptly report them to the Ministry of Finance for study and resolution.
Relations map
Click a document to open. A red border = a relation that changes validity.
Translations
This document is available in the following languages: