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THE
MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
91/2005/QD-BTC
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Hanoi,
December 8, 2005
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DECISION
ISSUING REGULATIONS ON FINANCIAL MANAGEMENT OF BUSINESS
ACTIVITIES OF GAMES WITH PRIZES
THE MINISTER OF FINANCE
Pursuant to Decree
24/2000/ND-CP of the Government dated 31 July 2000 on implementation of the Law
on Foreign Investment in Vietnam and Decree 27/2003/ND-CP of the Government
dated 19 March 2003 amending Decree 24 above;
Pursuant to Decree 164/2003/ND-CP of the Government dated 22 December 2003 on
implementation of the Law on Corporate Income Tax and Decree 152/2004/ND-CP of
the Government dated 6 August 2004 amending Decree 164 above; Decree
149/2003/ND-CP of the Government dated 4 December 2003 on implementation of the
Law on Special Sales Tax (as amended); Decree 158/2003/ND-CP of the Government
dated 10 December 2003 on implementation of the Law on Value Added Tax (as
amended); and Decree 148/2004/ND-CP of the Government dated 23 July 2004
amending Decree 158 above;
Pursuant to Decree 129/2004/ND-CP of the Government dated 31 May 2004 on
implementation of the Law/on Accounting;
Pursuant to Decree 77/2003/ND-CP of the Government dated 1 July 2003 on the
functions, duties, powers and organizational structure of the Ministry of
Finance;
Pursuant to Decision 32/2003/QD-TTg of the Prime Minister of the Government
dated 27 February 2003 issuing regulations on conducting business of electronic
games with prizes for foreigners;
In implementation of Official Letter 5852/VPCP-QHQT of the Prime Minister of
the Government dated 27 October 2004 regarding issuing regulations on financial
management of business activities of games with prizes;
On the proposal of the Director of the Department for External Finance;
DECIDES:
Article 1. To
issue with this Decision the Regulations on financial management of business
activities of games with prizes.
Article 2. This
Decision shall be of full force and effect fifteen (15) days after the date of
its publication in the Official Gazette. The Director of the Department for
External Finance, heads of units under the Ministry of Finance, Directors of
Departments of Finance and Directors of Tax Divisions of provinces and cities
under central authority shall, within the scope of their respective duties and
powers, be responsible for organizing implementation of this Decision. Business
establishments and representatives of parties to business co- operation
contracts which are permitted to conduct business activities of games with
prizes shall also be responsible for implementation of this Decision.
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FOR THE MINISTER
OF FINANCE
DEPUTY MINISTER
Le Thi Bang Tam
REGULATIONS
ON FINANCIAL MANAGEMENT OF BUSINESS ACTIVITIES OF GAMES WITH
PRIZES
(Issued with Decision 91/2005/QD-BTC of the Minister of Finance dated 8
December 2005, as amended by Decision 84/2007/QD-BTC of the Minister of Finance
dated 17 October 2007)
Chapter I
GENERAL PROVISIONS
Article 1.
Governing scope and applicable entities
1. These Regulations apply to
business activities of games with prizes.
2. Establishments conducting the
business of electronic games with prizes shall be subject to these Regulations
and shall be legally liable for their business activities.
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In these Regulations, the
following terms shall be construed as follows:
1. Games with prizes mean games
in which players use real money or conventional money to play games on prize
games machines designed to pay monetary prizes at a fixed ratio.
(a) Electronic games with
prizes means the type of games with prizes in which the player directly
plays the electronic prize games machine throughout the entire playing process
and staff of the amusement and entertainment location are not permitted to
intervene or participate in any form in such playing process.
(b) Other games with prizes
means the type of games with prizes in which staff of the amusement and
entertainment location provide a number of services for the player throughout
the playing process such as dealing cards, or issuing and collecting chips from
customers who are playing the prize games machines.
2. Conventional money
means metal chips, intermediary metal chips and metal tokens which are
manufactured in accordance with general technical specifications and which are
only used in business activities of games with prizes, and which may be changed
for cash. An intermediary metal chip is a type of chip which may only be
changed for cash via a metal chip. Each metal chip and intermediary metal chip
has a specific monetary value recorded on its face, while a metal token may or
may not have its value recorded on its face but must be convertible in
accordance with the Rules of the business establishment.
3. Prize games machine
means a type of specialized apparatus designed for the purpose of playing games
which depend on pure chance or which depend on skill, or games which depend on
a combination of pure chance and skill.
(a) Prize games electronic
machine means a type of prize games machine used for electronic games, in
which the prize payment ratio and an electronic system for paying prizes is
automatically built into the machine.
(b) Other prize games machine
means a machine for playing games with prizes, other than the type of machine
stipulated in sub-clause (a) above.
4. Prize payment ratio
means the amount of prize money which a player may win compared to the amount
of money paid out by the player in order to play the game, in accordance with
Games Rules approved by the Ministry of Finance.
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Chapter II
TURNOVER, EXPENSES AND
INCOME FROM BUSINESS ACTIVITIES OF GAMES WITH PRIZES
Article 3. Turnover
Turnover from a business
activity of games with prizes means the amount of money collectible (excluding
value added tax) as a result of changing money for customers at a money
changing counter or at a machine prior to customers playing games, less the
amount of money refunded to customers, and determined as follows:
1. Applicable to business
activities of electronic games with prizes:
(a) In the case of prize games
electronic machines for which the player must put real money or conventional
money into the machine in order to play the game, turnover shall be the total
money received when opening the money box inside the machine.
(b) Applicable to other prize
games machines:
Turnover shall be the total
money collectible from customers and determined in accordance with the invoices
for receipt of money at money changing counters, namely the total amount of
money collectible from customers in accordance with the invoices for changing
customers' money less the amount of money won by customers or refunded to
customers who had not used up all their tokens.
2. Applicable to business
activities of other games with prizes:
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(b) Business establishments must
monitor turnover on other games with prizes by checking readings of machines at
their cashing counters.
Article 4. Expenses
Reasonable expenses of a
business activity of games with prizes means the total expenses servicing such
business activity and determined in accordance with current regulations on corporate
income tax.
Article 5. Income
Income from a business activity
of games with prizes means turnover as stipulated in article 3 of these
Regulations less reasonable expenses servicing the business activity as
stipulated in article 4 of these Regulations.
Article 6. Accounting
applicable to establishments conducting the business of electronic games with
prizes
Business establishments
permitted to conduct the business of electronic games with prizes must conduct
separate accounting for turnover, expenses and income for that part of their
business operation being electronic games with prizes.
Chapter
III
TAXES ON BUSINESS
ACTIVITIES OF GAMES WITH PRIZES
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1. The corporate income tax rate
applicable to business activities of games with prizes is twenty-eight (28) per
cent, without reduction or exemption. If any business establishment was issued
with an investment licence or a business registration certificate for games
with prizes prior to the effective date of these Regulations, then corporate
income tax shall be applied in accordance with the specific provisions set out
in such licence or certificate.
2. Other types of taxes shall be
applicable in accordance with current regulations.
Article 8. Method
of paying taxes
1. Establishments conducting the
business of games with prizes must pay value added tax, special sales tax,
corporate income tax and other types of tax stipulated by the current
regulations.
2. Establishments conducting the
business of games with prizes which currently pay tax pursuant to a specific
decision of the Minister of Finance shall continue to pay tax by that method in
accordance with such decision.
Chapter IV
CONDUCTING ACCOUNTING
Article 9. Accounting
regime
Establishments conducting the
business of games with prizes shall carry out accounting and auditing work in
accordance with the Vietnamese law on accounting.
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Establishments conducting the
business of games with prizes must organize accounting work in accordance with
the current accounting regime by formulating and inspecting a system of
accounting source documents, and by formulating a chart of accounts applicable
to their units which ensures compliance with current regulations, satisfies
management requirements, and provides financial and economic information about
the establishment on all the standard forms for invoices and accounting source
documents reserved for the business of games with prizes, including the following
invoices which shall be compulsory:
- Coupon for handing out chips
and tokens;
- Coupon for handing in chips
and tokens;
- Receipt for changing money for
customers;
- Acknowledgement of total
turnover; and
- Finalization of receipts and
disbursements at cashing counters, on the standard forms in Appendix 1 to 5
attached to these Regulations.
Article 11.
Contents and requirements of accounting work
Establishments conducting the
business of games with prizes must conduct accounting work in accordance with
the contents and requirements stipulated in current regulations.
Chapter V
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Article 12.
Registration of conventional money
Establishments conducting the
business of games with prizes must register a sample of their conventional
money with the Department of Finance and the Tax Division in their province or
city under central authority.
Article 13.
Management of real and/or conventional money
Establishments conducting the
business of games with prizes must have specialized money boxes for holding
real and/or conventional money which is collected, and these boxes must be
sealed before being brought out of the chips and tokens store and also sealed
immediately after they are taken out of the prize games machines. The sealed boxes
must be opened at times specified in the Rules of the business establishment
under the supervision of the Supervisory Board stipulated in article 14 of
these Regulations.
Article 14.
Supervision of business activities of games with prizes
1. The entire process of the
business activity of games with prizes must be supervised by the Supervisory
Board of the amusement and entertainment location. All amusement and
entertainment locations must have regular monitoring and image recording facilities
(24 hours per day) for the business activity of games with prizes.
2. Any establishment permitted
to conduct the business of games with prizes must establish a Supervisory Board
and issue specific Rules on its functions, duties and powers in order for such
Supervisory Board to conduct daily checks and supervision of compliance with
these Regulations, the Games Rules, [other] professional Rules and of results
of the business activity. The Supervisory Board must include a representative
of the Vietnamese party and a representative of the foreign party in the case
of a joint venture establishment or a business co-operation contract.
3. The business establishment
must notify the list of members of the Supervisory Board to the local tax
office, and must provide information on supervision of the business activity of
games with prizes to the local tax office on request.
Chapter VI
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Article 15.
Conditions in order to conduct the business of games with prizes
A business establishment shall
only be permitted to procure prize games machines and to organize business of
electronic games with prizes when it satisfies all the following conditions:
(a) The authorized body has
already granted the business establishment an investment licence, investment
certificate or business registration certificate for games with prizes.
(b) The establishment has
completed the main items of investment project works stipulated in its
investment licence, investment certificate or business registration certificate
and it has completed the items of [project] works for the amusement and
entertainment location with prizes.
(c) The establishment has
formulated its Games Rules which contain specific provisions on the scale
[number] and type of prize games machines, on the machine control system, on
the method of playing each game, on the prize payment ratio and the method of
paying prizes, on all types of invoices and accounting source documents, and on
the samples and value of conventional money and on the objects used to contain
the conventional money [i.e. money boxes].
Article 16.
Number and type of prize games machines, and conditions in order to operate
such machines
1. Applicable to establishments
conducting the business of electronic games with prizes:
(a) Business establishments
shall only be permitted to arrange to have the following numbers of prize games
electronic machines:
- A maximum of one hundred (100)
machines in the case of a tourist residential 5 star establishment.
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- A maximum of fifty (50)
machines in the case of a tourist residential 3 star establishment.
(b) Business establishments
conducting the business of electronic games with prizes shall be permitted to
import and conduct business with the types of machines stipulated in Appendix 1
issued with this Decision.
2. Conditions in order to
operate machines:
(a) Each type of machine must
have a complete file on the machine supplied by the manufacturer and providing
specific certification about such items as the name of the machine, its type,
its technical specifications such as the main operational principles, the
method of playing the machine, the prize payment ratio and so forth.
(b) Prize games machines must be
certified as having been acceptance tested by the manufacturer or by an
independent organization with the function of acceptance testing such type of
machine regarding its quality, the games with which the machine has been
programmed, and other use functions of the machine.
3. Applicable to establishments
conducting the business of other games with prizes:
The number and type of games
machines (comprising both prize games electronic machines and other prize games
machines) shall be as stipulated in the investment licence, investment
certificate or business registration certificate.
Article 17.
Importing machines and carrying out business activities
1. After completing all the
conditions stipulated in article 15 of these Regulations, a business
establishment shall be permitted to import prize games machines in the number
and of the type as stipulated in article 16 of these Regulations.
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Article 18.
Inspection of finances
The Ministry of Finance shall
conduct financial inspections of the conduct by establishments of their
business activities of electronic games with prizes.
A financial inspection shall be
conducted periodically not more than once each year, except for a case
[requiring] a random inspection. The Minister of Finance shall issue a decision
on a specific inspection and the composition of the inspection [team].
Article 19.
Conduct which constitutes a breach of law by establishments conducting the
business of games with prizes:
1. Breach of the provisions on
tax and finance stipulated in current regulations.
2. Breach regarding the number
and type of machines.
3. Breach of any other provision
in these Regulations.
Article 20.
Dealing with breaches
Any establishment conducting the
business of games with prizes which breaches the provisions in article 19 of
these Regulations shall be dealt with in accordance with current regulations
and also the following provisions:
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2. In a case when a business
establishment commits a repeat offence, suspension of the business activity of
games with prizes, and consideration of revocation of the investment licence or
business registration certificate.
Chapter VII
ORGANIZATION OF
IMPLEMENTATION
Article 21.
Business establishments which are permitted to conduct business activities
of games with prizes shall be responsible for full compliance with these
Regulations. Any difficulties should be reported to the Ministry of Finance for
resolution.
LIST OF APPENDICES:
No.
Description
Notes
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1.
Coupon for handing out chips
and tokens
Not translated
2.
Coupon for handing in chips
and tokens
Not translated
3.
Receipt for changing money for
customers
Not translated
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Acknowledgement of total
turnover
Not translated
5.
Finalization of receipts and
disbursements at cashing counters
Not translated
Decision 84/2007/QD-BTC dated
17 October 2007:
1.
Translated
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APPENDIX 1
(Issued
with Decision 84/2007/QD-BTC of the Minister of Finance dated 17 October 2007)
LIST
OF ELECTRONIC GAMES MACHINES
(referred
to in article 16.1(b), and which must comply with article 2 of Decision 91):
No.
Type
of Machine
Ratio
of Permitted Machines/Total Maximum Permitted Machines
Number
of Players
1.
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- Aruze; Aristocrat.
- WMS; IGT, Weike.
≤
100%
Designed for only one player.
2.
Roulette machine (completely
automatic).
≤
3%
Designed for a number of
people to play at the same time.
3.
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≤
3%
Designed for a number of
people to play at the same time.
4.
Electronic blackjack machine
(completely automatic).
≤
3%
Designed for a number of
people to play at the same time.
5.
Sicbo or Tai Siu machine
(completely automatic).
≤
3%
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6.
Horse racing machine and
Mah-jong machine (completely automatic).
≤
3%
Designed for a number of
people to play at the same time.