Vietnam: What are the requirements for an organization to act as a lottery agent? Does a lottery agent contract include the methods of paying amounts from sale of lottery tickets?
What are the requirements for an organization to act as a lottery agent in Vietnam?
According to Point b, Clause 1, Article 16 of Circular 75/2013/TT-BTC, the requirements for an organization to act as a lottery agent in Vietnam are specified as follows:
- Being economic organizations that are established and operate legally in Vietnam;
- Not being economic organizations owning the contributed capital of chairmen, General Directors or Directors, deputy General Directors or deputy Directors, Chiefs accountant or persons in charge of accounting, controllers and heads, deputies of professional departments of that lottery company or lottery companies operating in the same area;
- Not being economic organizations owning the contributed capital of spouse, biological father or mother, adoptive father or mother, children, adopted children, biological sisters or brothers, adoptive sisters or brother of chairmen, General Directors or Directors, deputy General Directors or deputy Directors, Chiefs accountant or persons in charge of accounting, controllers and heads, deputies of professional departments of that lottery company or lottery companies operating in the same area;
- Meeting requirements on ensuring payment as prescribed by law on guarantee transactions to ensure the payment obligation to lottery companies;
- Having written commitment to full compliance with provisions of lottery companies upon becoming a lottery agent.
Does a lottery agent contract in Vietnam include the methods of paying amounts from sale of lottery tickets?
According to Point g, Clause 2, Article 17 of Circular 75/2013/TT-BTC:
Lottery agent contract
1. Organizations and individuals eligible as prescribed in Article 16 of this Circular and selected to do as lottery agent must sign lottery agent contract with lottery companies.
2. Contracts of lottery agent that are elaborated by lottery companies must ensure full principal contents as follows:
a. Names, addresses, representatives of parties signing contracts of lottery agent;
b. Type of lottery tickets received for sale;
c. The allowed methods of distributing lottery tickets;
d. Methods of and procedures for delivery and receipt of tickets and returning lottery ticket that are not sold;
dd. Quantity of lottery tickets received for sale. In case where quantity of lottery tickets received for sale is adjusted in each period, content of quantity of lottery tickets received for sale is specified in Annex of contract. Annex of contract is an integral part of lottery agent contract;
e. Rate of agent commission; rate of the charges enjoyed from payment for lottery tickets winning prizes (if any);
g. Methods of paying amounts from sale of lottery ticket, time of payment, debt term;
h. Forms to guarantee performance of payment obligation;
i. Rights and obligations of parties signing contract;
k. Handling of violations and commitments on compensation due to breaking contract;
l. Effect time limit of contract;
m. Other contents in serve for the management requirements of lottery companies but not being contrary to provisions of law.
Thus, a lottery agent contract in Vietnam includes methods of paying amounts from sale of lottery tickets.
What are the regulations on the payment for amounts from sale of lottery tickets in Vietnam?
According to Article 18 of Circular 75/2013/TT-BTC on the payment for amounts from sale of lottery tickets and guarantee for payment obligation of lottery agents:
- Lottery agents must pay full for lottery tickets received for sale to lottery companies when receiving lottery tickets of lottery companies.
- In case where a lottery company allows a lottery agent to be in debt from sale of lottery tickets, the maximum time for the debt of the lottery agent does not exceed the time limit specified in Article 19 of this Circular and it is required for the lottery agent to have property to guarantee for its payment obligation.
- Measures to guarantee the payment obligation of lottery agents to lottery companies comply with provisions in Article 13 of Decree 30/2007/ND-CP and provisions of law on the guaranteed transactions.
- The guaranteed levels for payment obligation of the lottery agent to the lottery company are specified as follows:
+ For the number of tickets that the lottery agent has received but the date of issuing the lottery ticket has not yet come, the minimum guaranteed level for payment obligation is defined as follows:
The minimum guaranteed level for payment obligation | = | Quantity of lottery tickets received for sale | x | Par value of lottery tickets | - | The commission of lottery agent enjoyed |
+ For the quantity of tickets that the lottery agent has received and defined that they have been sold in the period, the guaranteed level for payment obligation is equal 100% of total value of the sold lottery tickets deducting the commission of the lottery agent enjoyed as prescribed.
- The process of and procedures for registration of guarantee transaction for properties used for guarantee of payment obligation comply with provisions of law on guarantee transactions and registration of guarantee transactions.
- Lottery companies must assess the value of properties used for the guarantee of payment obligations at the time of receiving properties; periodically, re-assess or implement re-assessment as necessary.
For properties as real estate, movable properties used in guarantee for payment obligation but lottery companies fail to have sufficient capability for valuation, lottery companies may hire organizations having a function on evaluation to define the value of properties used in guarantee for payment. Expenses for evaluation are calculated into the business operational expenses of lottery companies.
Lottery companies and agents may agree and unify the rate of value to receive a guarantee for payment in comparison with the value of properties, but the capability of debt recovery must be ensured if the contract is broken.
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