Vietnam: Enterprises may give a maximum discount of 2% of total value of tokens bought

11:45, 05/08/2013

On July 29, 2013, the Government of Vietnam issued Decree No. 86/2013/NĐ-CP on the business of prize-winning electronic games for foreigners.

DN giảm giá tối đa 2% trên tổng giá trị đồng tiền quy ước trò chơi điện tử, Nghị định 86/2013/NĐ-CP

According to Article 28 of Decree No. 86/2013/NĐ-CP of Vietnam’s Government, enterprises may give discounts for players. The maximum discount is 2% of total value of tokens bought. Taxable values are determined based on actually collected amounts minus discounts.

- The Ministry of Finance shall provide specific guidance on persons eligible for discount, discount limit and method of determining taxable values to be reduced for each tax as provided above.

- In addition to discounts mentioned above, sales promotion items being accommodations, meals and travel fares provided by enterprises to players may only be accounted as their expenses at the percentage prescribed by the current law on enterprise income tax. Total expenses serving as a basis for determining the maximum sales promotion level are total expenses creditable upon the determination of enterprise income tax, excluding sales promotion and prize payout expenses. In addition, enterprises may not provide sales promotion in any other form to players.

- When conducting sales promotion activities, in addition to implementing this Decree, enterprises shall comply with relevant regulations on sales promotion.

Besides, Decree No. 86/2013/NĐ-CP also stipulates that the advertising of the business of prize-winning electronic games complies with the law on advertising and other relevant laws.

View details at Decree No. 86/2013/NĐ-CP of Vietnam’s Government, effective from October 01, 2013.

Ty Na

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