11:54 (GMT +7) - Tuesday 21/05/2019

Vietnam Today

Incentives for science & technology enterprises on way

Released at: 17:15, 19/03/2019

Incentives for science & technology enterprises on way

Photo: travinh.gov.vn

To take effect on March 20, Decree 13 provides preferential treatment for science and technology enterprises.

by Linh Chi

Government Decree No. 13/2019/ND-CP on science and technology enterprises, dated February 1, will take effect on March 20.

Preferential treatment will be provided to science and technology enterprises, in corporate income tax (CIT) reductions and exemptions, credit incentives, and exemptions or reductions in rental fees for land use rights and water surface use, among others.

The Decree is applicable to enterprises operating under laws specifically relating to science and technology activities. Enterprises wishing to be certified as a science and technology enterprise must meet the following requirements:

  1. Established and registered under the Law on Enterprises;
  2. Able to create or apply scientific and technological achievements that are evaluated, appraised, and recognized by competent authorities under existing regulations; and
  3. Generate revenue from the production and trading of goods from scientific and technological achievements that accounts for at least 30 per cent of total revenue.

Newly-established enterprises of less than five years, however, need only meet conditions (a) and (b).

CIT incentives in Decree 13 include tax exemptions for four years and a 50 per cent reduction in payable CIT for the next nine years (when the condition on revenue generated from production and trading of goods accounting for a minimum of 30 per cent of total revenue is met). The Decree also stipulates other incentives science and technology enterprises are entitled to, including exemptions or reductions of rental fees for land use rights and credit incentives (preferential loans from commercial banks with a maximum interest rate reduction of 50 per cent).

User comment (0)

Send comment