September 23, 2017 20:12

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Casino enterprises have to connect information to tax authority

09:36 | 08/09/2017

VCN – In order to strictly manage money at the final stage in the management process of casino enterprises, in the draft circular has stipulated on guidance tax management and tax supervision of casino operation. In that, Ministry of Finance proposed that enterprises operate casino have to use management software for revenue and expenses management and connect to the tax authority.

casino enterprises have to connect information to tax authority
Currently the casino business can manage the revenue and expenditure ... on the computer system, however, only Ho Tram Co., Ltd. use the management software system to manage all transactions related to money, conventional currency and statement of each transaction for each guest. Source: The Internet

Regarding to the regulation: "Cash management, currency covenant in treasury, cashier counters and at game tables, game winning prize machines", the draft circular clearly stated that enterprises must develop and issue regulations on management of money, currency covenant and management organization in order to ensure the separation between the treasury, the cashier and at the playing table, gaming winning prize machines.

Enterprise is only allowed to exchange currency covenant for players before playing at the cashier or playing table and return cash for players at the cashier.

According to the draft circular, all transactions related to currency exchange, input and output currency covenant, credit into game machine must be monitored by computer software and ensure update daily data and transfer from software to income statement by following sample issued along with the Circular. These transactions must be archived for a minimum period of 10 years and reported to the relevant authorities.

Income statement must be set up on computer software and casino enterprises have to transfers data information of income statement to tax authority daily.

Accordingly, the Ministry of Finance (General Department of Taxation) is responsible for developing connection standards and data standards to ensure that tax agencies receive data sent by enterprises and has solutions to guide companies to convert appropriate systems with a standard format developed by tax sector.

Moreover, according to the current tax law and actual management practices of enterprises operate casino, the turnover is used as a basis for calculating tax (VAT, excise tax, and business income tax) for casino business is determined as following: for game winning prize machines, the turnover used as a basis for calculating the tax is the amount of cash put into the machine minus the amount of money paid to winner. (in that: The amount of money put into the machine is contained inside a special bags of each machine, the enterprise will open a cash bag at the cashier counter daily and monthly. The winning prize will be given to the winner at the cashier counter).

For game tables: Turnover is set as the basis for calculating tax that is the amount of money collected when customers buy the chip minus the amount when customers pay back from selling the chip. (In that: the amount of money earned when buying the chip is done at the cashier counter and at the game table. The amount of money returned when selling chip is made at the cashier)

Periodically at the end of the shift/end of the day/end of the month, the casino enterprises will check inventory from import and export the chip (export chip is come from warehouse to cashier counter to exchange for customers before playing and export to all tables. Import chip is imported from the cashier and from the tables to the chip storage. The gross margin between the import value and export value at the tables is the basis for calculating the VAT, excise tax, and business income tax.

According to the Ministry of Finance, based on the model of actual revenue management at the casino enterprises, the enterprises can manage income and expense activities, export and import currency covenant ... on computer systems and can be printed upon request.

However, currently, only Ho Tram Co., Ltd. uses the IGT-Nevada software system of the US to manage all transactions related to money, currency covenant and statements of each transaction for each customer.

Based on the operating model of the casino enterprise, the nature of revenue management and tax administration for casino operations is to manage cash flow in the final stages of the management process of casino businesses. Hence, the Ministry of Finance has proposed that casino businesses must use computer software to manage revenue, expenses and have to connect information with tax authorities.

Earlier, on 16/1/2017, the Government issued Decree No. 03/2017 / ND-CP on casino business.

By Minh Anh/Thanh Thuy