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

1. Levels and durations of preferential exemptions and reductions for corporate income tax.

In 2021, science and technology enterprises enjoyed preferential treatment in the form of exemptions and reductions in corporate income tax as stipulated in Clause 1, Article 12 of Government Decree No. 13/2019/ND-CP dated February 1, 2019. Specifically, They are exempt from tax for 04 years and receive a 50% reduction in tax payable for the following 09 years.

Tax exemption and reduction periods for science and technology enterprises This calculation is continuous from the date the Certificate of Science and Technology Enterprise is issued.In cases where there is no taxable income in the first three years from the first year of issuance of the Science and Technology Enterprise Certificate, the first year for calculating tax exemption and reduction will be from the fourth year.

During the period of corporate income tax exemption and reduction in 2021, if a science and technology enterprise fails to meet the condition that the revenue from products resulting from science and technology reaches a minimum of 30% of the enterprise's total annual revenue, then that year the science and technology enterprise will not be eligible for the tax exemption and this will be deducted from the period of corporate income tax exemption for the science and technology enterprise.

In cases where a science and technology enterprise has taxable income but the period of production and business activities eligible for tax exemption or reduction in the first year is less than 12 (twelve) months, the science and technology enterprise may choose to enjoy the tax exemption or reduction in that first year or register with the tax authority to begin enjoying the tax exemption or reduction in the following year. 

If a business registers for tax exemption or reduction in the following year, it must determine the amount of tax payable for the first year in which it had taxable income and pay it to the State budget as prescribed.

2. Applicable cases

This applies to science and technology enterprises that have already received or are currently receiving corporate income tax incentives. subject to other preferential conditions (Excluding science and technology enterprises) that have been granted a Science and Technology Enterprise Certificate, the period of exemption or reduction of corporate income tax under the conditions of a science and technology enterprise is determined by subtracting the period of exemption or reduction of corporate income tax already enjoyed under other preferential conditions from the period of exemption or reduction of corporate income tax applicable to science and technology enterprises.

This applies to science and technology enterprises that are currently operating and enjoying corporate income tax incentives. according to the conditions for science and technology enterprises as supplemented by the competent authority. For products resulting from scientific and technological achievements that are included in the Certificate of Scientific and Technological Enterprise, the income from the production and business activities of these products is entitled to tax exemption or reduction on corporate income tax, along with the tax exemption or reduction on corporate income tax already enjoyed by the scientific and technological enterprise, for the remaining period.