CIRCULAR

AMENDING CIRCULAR NO. 117/2002/TT-BTC OF DECEMBER 27, 2002 WHICH GUIDES THE IMPLEMENTATION OF THE FINANCIAL MANAGEMENT REGIME FOR CONSTRUCTION LOTTERY COMPANIES

Pursuant to the State Enterprise Law and the Enterprise Income Tax Law;

Pursuant to the Government’s Decree No. 59/CP of October 3, 1996 promulgating the Regulation on financial management and business accounting for State enterprises and the Government’s Decree No. 27/1999/ND-CP of April 20, 1999 amending and supplementing a number of articles of the above-said Financial Regulation;

In order to suit the practical situation of construction lottery (CL) activities,

The Finance Ministry hereby guides amendments to Circular No. 117/2002/TT-BTC of December 27, 2002 guiding the implementation of the financial management regime for CL companies as follows:

1. Point 2.2, Section 2 of Part II on payment of commissions in Circular No. 117/2002/TT-BTC of December 27, 2002 is amended as follows:

- Payment of agency commissions means the amounts paid to agents that sell tickets for CL companies.

Payment of agency commissions shall be prescribed by CL companies for each type of lotteries and applicable only to each period of time and each specific region, which, however, must not exceed 13% of the total ticket-sale turnover.

CL companies shall have to deduct enterprise income tax (EIT) amounts to be paid by their EIT-liable agents before paying CL ticket-sale commissions to agents according to current regulations.

Apart from the above-said percentages of agency commissions, depending on the business scales, areas, nature and capabilities, CL companies may also pay the expenses in support of development of the agency network according to the provisions of Point 2.8, Part II of the Circular.

2. Point 2.8, Section 2 of Part II on the expenses for development of the agency network in Circular No. 117/2002/TT-BTC of December 27, 2002 is amended as follows:

- Expense for development of the agency network means the expense aiming to encourage the expansion and development of the ticket-sale stage.

Expenses for development of the CL agency network includes the expenditure on printing forms, books, lists on equipment, means, and transportation of tickets to localities far from companies’ headquarters, on conferences, partial support of ticket-sale risks and other necessary supports for agents.

These expenses are spent on the following principles:

- The maximum spending percentage is set at 2.5% of a CL company’s total ticket-sale turnover.

- CL companies shall base themselves on the above-said spending percentage to apply suitably to their business characteristics and conditions.

- CL companies’ directors shall elaborate and promulgate the Regulations on expenses for development of the agency networks suitable to their business characteristics. Such Regulations must be registered with local financial management bodies and reported to the supervisory councils for management. Basing themselves on the promulgated regulations on supports for agents, CL companies’ directors shall issue decisions on the specific support level for each agent. Basing themselves on the support decisions, the managing sections shall make spending vouchers for agents; monthly, quarterly and annually, to make detailed lists of the support amounts paid to agents (according to enclosed form), to be reported together with the companies’ financial statements.

This Circular takes effect 15 days after its publication in the Official Gazette.

FORM No. 01 – BK – HTDL

(Enclosed with the Finance Ministry’s Circular No. 73/2004/TT-BTC of July 16, 2004)

CL company

.................

LIST OF SUPPORT AMOUNTS FOR AGENTS

(Monthly, quarterly, annual)

Calculation unit: VND 1,000

Day......month.........year 2004