Exemption or reduction of corporate income tax for science and technology enterprises

Exemption or reduction of corporate income tax for science and technology enterprises

On January 11, 01, the Ministry of Finance issued Circular No. 2021/03 / TT-BTC providing guidance on tax exemption and reduction of corporate income tax (CIT) for science and technology enterprises specified in the Decree. Decree No. 2021/13 / ND-CP dated February 2019, 01 of the Government.

This Circular takes effect from March 01, 3. 

Level and duration of corporate income tax exemption and reduction

 Science and technology enterprises are entitled to corporate income tax exemption or reduction under the provisions of Clause 1, Article 12 of the Government's Decree No. 13/2019 / ND-CP dated February 01, 02, specifically: tax exemption for 04 years and 50% reduction of payable tax amount for the next 09 years.

 Tax exemption and reduction period for science and technology enterprises be counted continuously from the date of being granted the Certificate of Science and Technology Enterprise. If there is no taxable income for the first three years, counting from the first year that the Certificate of a science and technology enterprise is granted, the first year for calculating the tax exemption or reduction period starts from the fourth year.

 During the time of enjoying tax exemption and reduction of corporate income tax, if any year, science and technology enterprises fail to meet the conditions for turnover of products formed from scientific and technological results. At least 30% of the total annual turnover of the enterprise, that year the science and technology enterprises are not entitled to incentives and shall be deducted from the period of enjoying the enterprise income tax incentives of scientific enterprises. and technology.

 In case a science and technology enterprise has earned taxable income but has been eligible for tax exemption or reduction for the first year of operation for less than 12 (twelve) months, then the science and technology enterprise can choose to enjoy tax exemption or reduction in that first year or register with the tax agency the starting time of tax exemption or reduction in the following year. If the enterprise registers to tax exemption or reduction in the following year, it must determine the payable tax amount of the first year in which the taxable income is earned to pay into the State budget according to regulations.

Some cases apply

- In case science and technology enterprises have been or are enjoying corporate income tax incentives under other preferential conditions (in addition to preferential conditions for science and technology enterprises) that are granted an enterprise certificate in science and technology, the duration of tax exemption or reduction of corporate income tax according to the conditions of science and technology enterprises is determined by the period of tax exemption or reduction of corporate income tax applicable to enterprises.
science and technology minus time for tax exemption or reduction of corporate income tax enjoyed under other preferential conditions.

- If science and technology enterprises are operating and are enjoying corporate income tax incentives under the condition that science and technology enterprises are supplemented with products formed from scientific results by competent agencies. If the certificate of science and technology is entered into the Certificate of a science and technology enterprise, the income from the production and trading of products formed from additional scientific and technological results is entitled to tax exemption and reduction. Enterprise entry with tax exemption and reduction of corporate income tax of science and technology enterprises are enjoying for the remaining time.

Procedures for enterprise income tax incentives

The science and technology enterprises shall determine by themselves the incentive corporate income tax amounts and declare them in the list of CIT incentives for science and technology enterprises attached to this Circular.

A list of corporate income tax incentives is attached to the annual corporate income tax finalization return.

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