Headlines 26/01/2021 08:51 SA

Eligibility requirements for science and technology enterprise's entitlement to CIT reduction and exemption policies

Thảo Trần

The Ministry of Finance has recently issued the Circular No. 03/2021/TT-BTC providing instructions for granting CIT (corporate income tax) exemption and reduction incentives to science and technology enterprises as provided in the Decree No. 13/2019/ND-CP dated February 1, 2019.

According to this document, in order to have access to CIT exemption and reduction policies, science and technology enterprises must meet the following requirements:

- Receiving certificates of science and technology enterprises from competent state authorities.

- Their sales from manufacturing and business of products created from application of scientific and technological achievements must account for at least 30% of their annual gross revenue.

- Revenue earned from services rendered by applying science and technology achievements in the information technology industry must be revenue generated from new services other than services already available on the market.

- Income generated from science and technology achievements within a tax period must be separately accounted for; if not doing so, such income must be divided according to clause 2 of the 2008 Law on Corporate Income Tax.

- Implementing accounting, invoice, bill or receipt issuing regulations laid down in laws and paying taxes based on accepted tax declarations.

For more details, please refer to the Circular No. 03/2021/TT-BTC in effect as of March 1, 2021.

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