A science and technology enterprise is an enterprise established and operating in accordance with Vietnamese law, engaged in the production, business, and services derived from scientific and technological results, and granted a science and technology enterprise certificate in accordance with the law.
This article will help you establish and register a science and technology enterprise that is eligible for tax incentives.
Identifying science and technology enterprises
1. How do you define a science and technology enterprise?
Science and technology enterprises are businesses established and operating in accordance with Vietnamese law, engaging in production, business, and services. scientific and technological results.
2. Define what constitutes a scientific and technological achievement?
The results of scientific and technological activities, scientific and technological tasks, and scientific research and technological development are hereinafter referred to as scientific and technological results. Scientific and technological results serve as the basis for considering the granting of a Certificate of Scientific and Technological Enterprise.
Scientific and technological results are expressed in one of the following forms:
a) Inventions, utility models, industrial designs, semiconductor integrated circuit layout designs, and plant varieties that have been granted protection certificates in accordance with the law on intellectual property or have been recognized as internationally registered in accordance with international treaties to which Vietnam is a member; computer programs that have been granted copyright registration certificates;
b) New breeds of livestock, new varieties of crops, new species of aquatic animals, new varieties of forestry trees, and technical advancements recognized by the Ministry of Agriculture and Rural Development;
c) The results of the task have resulted in science and technology awards organized or approved by competent state agencies in accordance with the law on science and technology awards;
d) Scientific and technological results that have been confirmed and recognized by competent authorities in accordance with the law;
e) The transferred technology must be certified by a competent authority in accordance with the law.
Businesses undertaking new investment projects in the field of scientific research and technological development are those that utilize scientific and technological results to implement new production and business projects or to completely replace existing technologies in their production and business operations.
3. The Value of the Science and Technology Enterprise Certificate
The certificate of science and technology enterprise serves as the basis for implementing preferential policies and support for science and technology enterprises and is valid nationwide.
The Certificate of Science and Technology Enterprise also serves as the Certificate of Registration for Science and Technology Activities.
The certificate of science and technology enterprise serves as the basis for applying investment incentives to science and technology enterprises.
Tax incentives for science and technology enterprises
1. Exemption or reduction of corporate income tax
The income of science and technology enterprises from the production and business activities of products resulting from scientific and technological achievements is entitled to tax exemptions and reductions on corporate income tax, similar to enterprises implementing new investment projects in the field of scientific research and technological development, specifically:
Tax exemption for 04 years and a 50% reduction in tax payable for the following 09 years..
2. Determine the income of science and technology enterprises that are eligible for tax exemptions and reductions.
Revenue and income from the production and business activities of products resulting from scientific and technological achievements as stipulated in Clause 1, Article 2 of this Decree.
Clause 1, Article 2 of Decree 13/2019/ND-CP stipulates: Products formed from scientific and technological results (including: post-incubation technology, goods, services and other forms) are the result of a production or service provision process based on the application, use or development of scientific and technological results.
Revenue and income generated from services that apply scientific and technological results in the field of information technology must be revenue and income from new services.
Science and technology enterprises are not eligible for tax exemptions or reductions on corporate income tax for fiscal years that do not meet the minimum revenue requirement for products resulting from scientific and technological achievements. 30% as a percentage of the company's total revenue.
3. Procedures for implementing corporate income tax incentives for science and technology enterprises.
The conditions and procedures for implementing corporate income tax incentives shall comply with the provisions of the law on corporate income tax and tax administration.