Regulations for the business of prize-winning electronic games for foreigners in Vietnam, Financial management of the prize-winning electronic games business

Regulations for the business of prize-winning electronic games for foreigners in Vietnam

Circular No. 39/2022/TT-BTC was recently issued by the Ministry of Finance guiding a number of articles of the Government’s Decree No. 121/2021/ND-CP on the business of prize-winning electronic games for foreigners.

Circular 39/2022/TT-BTC clearly states the fee for assessment, granting and renewing the Certificate of eligibility for business is 150 million VND.

Fees for re-appraisal, re-issue, and adjustment of business eligibility certificates are 5 million VND.

Fees for appraisal of the grant, re-issuance, adjustment, and extension of business eligibility certificates according to the above provisions shall be collected from the central budget.

After verifying that the enterprise is eligible for the grant, re-grant, adjustment, and extension of the Certificate of business eligibility, the Ministry of Finance shall notify the enterprise to pay the appraisal fee as prescribed by law.

After receiving the Ministry of Finance’s notice, the enterprise is responsible for paying the fee to the state budget. Enterprises may only be granted, re-issued, adjusted, and extended Business Eligibility Certificates after they have paid the fees to the state budget.

Financial management of the business

The Circular stipulates that prize-winning electronic game businesses must separately record revenues, expenses, and profits related to the prize-winning video game business and separately track these items on the accounting and financial reporting system.

In case it is not possible to separately account for the revenue from the prize-winning video game business, this whole revenue shall be counted as the revenue from the prize-winning video game business and is the revenue to calculate excise tax.

The price reduction of prize-winning electronic game businesses as prescribed in Article 35 of Decree No. 121/2021/ND-CP is implemented as follows:

The object of the price reduction is a player who purchases a fiat currency with a minimum value of $50,000 (USD)/time.

Enterprises are entitled to deduct taxable revenue in accordance with tax laws. The method of determining tax to be deducted shall comply with the provisions of the tax law.

Enterprises must notify the tax authority directly managing the discount policy.

This Circular takes effect from August 8, 2022.

ASL LAW is the top-tier Vietnam law firm for doing business in Vietnam. If you need any advice, please contact us for further information or collaboration.


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