Ministry of Finance (MoT) has, for the first time, announced official tax rates on slot machine operation, which so far is still limited for foreigners use only.
Accordingly, the service will burden a flat tax rate (including value added, special consumption and enterprise income taxes) of between US$5,000 and US$50,000/machine/year.
Previous levels of tax levied on the operation in Vietnam were applied depending on certain cases, as the operation has remained intentionally underdeveloped, an official from the MoT said.
Business circle believed that it is one move further by the Government to approach WTO’s playing field after it failed to get the nod to join the largest global trade organization this year and is hoping for a berth next year.
According to the new decision, the rates will depend on the scale of the enterprises, MoT said, detailing that enterprises with more machines will be burdened with higher levels.
For one-player-machines, enterprises owning less than 50 machine will receive tax levels of US$5,000-7,000/one, those with more than 50 machine will have tax rates of $7,000-10,000/machine/year. More-than-nine-player machines will receive tax rates of $45,000-50,000/machine/year.
Local businessmen, particularly those running luxury entertainment services, are waiting for further moves from the Government toward untying the operations.
Since October, tourism officials in Ho Chi Minh City have officially strongly called for support to a plan to build a casino for foreigners only, which is expected to bring in about billions of US dollars.
In August 2004, the communist-ruled Government decided to stop granting investment licenses to projects to build casinos for foreigners aiming to tighten the control on the operations of slot machines. Under the decision, only existing casinos such as the one in Do Son in northern Haiphong City and a few others in southern areas are allowed.
The government’s ban has allegedly made some investors of luxury tourism and entertainment projects hesitate or change their plans in Vietnam.
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