Our Vietnam Legal Update #195 would lead you on 03 legal issues:
I. Regulations on the business of prize-winning video games for foreigners
On 27 December 2021, the Government issued Decree No. 121/2021/ND-CP to regulate the business of prize-winning video games for foreigners in Vietnam. Some notable contents are as follows:
- The business of prize-winning video games is a conditional business activity, subject to strict control by state management authorities and the business must comply with the provisions of the laws.
- Enterprises doing business in prize-winning video games are only allowed to organize prize-winning video games at only one business location licensed by a management authority. The business location must fully satisfy the conditions as regulated.
- The ratio of the number of prize-winning video game machines used will be based on the number of accommodation rooms that have been set up for business with the ratio: 05 rooms – 01 game machine.
- When all prize-winning video games are set up for business, enterprises must develop appropriate game rules for each type of machine and send them to competent authorities for monitoring. Game rules must be in accordance with the laws.
- Subjects allowed to play at business locations include foreigners and overseas Vietnamese who legally enter Vietnam with their passports and have a valid residence permit in Vietnam. These subjects must have full civil act capacity as prescribed by the laws and voluntarily comply with the game rules and regulations of this Decree.
- In addition to those who are allowed to play at the above business locations, only the following people are allowed to be in and out of the business location:
- Managers and employees of prize-winning video game businesses;
- Employees of a service-providing organization that has a contract to provide services to a prize-winning video game enterprise;
- Officials of competent state management agencies with inspection mission.
The above subjects are only allowed to enter business locations to perform assigned tasks, but not allowed to participate in games. The entry and exit of people entering and leaving the business location must be controlled and recorded by the enterprise.
- The manager and operator of the business location must meet the standards regulated by the laws.
- Other regulations on management, order, and procedures related to the business of prize-winning video games are specified in this Decree.
II. Invoice when applying a commercial discount
The Tax Department of Buon Me Thuot City has issued Official Letter No. 6492/CCT-TTHT dated 08 December 2021 on invoicing when applying commercial discount with the following main contents:
- In case the enterprise applies the form of commercial discount to customers (if any), the VAT calculation price is the discounted commercial selling price for the customer.
- In case the commercial discount is based on the quantity and sales of goods and services, the discount shall be included in the invoice for the last sale or transferred to the next period.
- In case the discount is offered after the sales promotion program, an adjustment shall be made attached to the list of invoice numbers needing to be adjusted, the payment amount, and the tax amount to be adjusted. According to the adjusted invoice, the buyer and the seller shall adjust their revenues, input, and output taxes.
III. Compensation costs when liquidating the contract
The Tax Department of Long An Province has issued Official Letter No. 3807/CTLAN-TTHT dated 15 December 2021 on compensation costs when liquidating the contract with the following contents:
In case an enterprise signs a house lease contract with an individual for a period of 5 years. Then, due to the need for office expansion, the enterprise liquidated the contract ahead of time and incurred contract compensation costs for customers. This expense will be deducted when determining taxable corporation income if this expense meets the following conditions:
- The actual expense incurred is related to the enterprise’s business operation;
- There are sufficient and valid invoices and proof for the expense under the regulations of the laws; and
- There is proof of cashless payment for each invoice for the purchase of goods/services of VND 20 million or over (including VAT).
Maybe you are interested in reading other Legal Update of BLawyers Vietnam: December 2021 (Part 5) | December 2021 (Part 4) | December 2021 (Part 3) | December 2021 (Part 2) | December 2021 (Part 1) | November 2021 (Part 4) | November 2021 (Part 3) | November 2021 (Part 2) | November 2021 (Part 1) | October 2021 (Part 5) | October 2021 (Part 4)