Circular 03/2021/TT-BTC guiding the CIT exemption and reduction for science and technology enterprises

CIRCULARS

GUIDELINES ON TAX Exemption and Reduction of CORPORATE INCOME TAX FOR SCIENCE AND TECHNOLOGY ENTERPRISE PROVISIONS IN DECREE No. 13/2019/ND-CP dated February 01, 02 OF THE GOVERNMENT ON SCIENCE AND ENTERPRISE TURMERIC

Pursuant to the Law on Corporate Income Tax No. 14/2008/QH12 dated June 3, 6; Law amending and supplementing a number of articles of Law on corporate income tax No. 2008/32/QH2013 dated June 13, 19; Law amending and supplementing a number of articles of tax laws No. 6/2013/QH71 dated November 2014, 13;

Pursuant to the Law on Tax Administration No. 38/2019/QH14 dated June 13, 06;

Pursuant to the Government's Decree No. 218/2013/ND-CP dated December 26, 12 detailing a number of articles of the Law on Corporate Income Tax and the Law amending and supplementing a number of articles of the Law on Income Tax enterprise; Decree No. 2013/91/ND-CP dated October 2014, 01 of the Government amending and supplementing a number of articles in the Decrees on tax regulations; Decree No. 10/2014/ND-CP dated February 12, 2015 of the Government detailing the Law amending and supplementing a number of articles of the Law on Taxation;

Pursuant to Decree No. 13/2019/ND-CP dated February 01, 02 of the Government on science and technology enterprises;

Pursuant to the Decree No. 87 / 2017 / ND-CP dated 26 / 7 / 2017 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Implement the Prime Minister's direction in Document No. 4377/VPCP-KTTH dated June 02, 6 of the Government Office on corporate income tax policy for science and technology enterprises;

At the proposal of the Director of the General Department of Taxation;

The Minister of Finance promulgates a Circular guiding the tax exemption and reduction of corporate income tax for science and technology enterprises specified in Decree No. 13/2019/ND-CP dated February 01, 02 of the Ministry of Finance. Government on science and technology enterprises.

Article 1. Scope of adjustment and subject of application

1. Scope of regulation: This Circular provides guidance on incentives for tax exemption and reduction of corporate income tax for science and technology enterprises specified in Decree No. 13/2019/ND-CP dated February 01st. 02 of the Government on science and technology enterprises.

2. Subjects of application: Science and technology enterprises as prescribed in the Law on Science and Technology and Decree No. 13/2019/ND-CP dated February 01, 02 of the Government on science and technology enterprises technology and related agencies, organizations and individuals.

In case a science and technology enterprise has an affiliated branch that does independent accounting, if the branch satisfies the conditions prescribed in Article 2 of this Circular, income from products formed from scientific and technological results branches are also entitled to corporate income tax incentives as prescribed in Clause 1, Article 12 of Decree No. 13/2019/ND-CP dated February 01, 02 of the Government.

Article 2. Conditions of application

Science and technology enterprises entitled to tax exemption and reduction incentives according to the provisions of Clause 1, Article 12 of Decree No. 13/2019/ND-CP dated February 01, 02 of the Government must satisfy the following requirements: the following conditions:

1. To be granted the Certificate of Science and Technology Enterprise by a competent state management agency.

2. Annual turnover from production and trading of products formed from scientific and technological results shall reach at least 30% of the total annual turnover of the enterprise.

a) Annual turnover from production and trading of products formed from scientific and technological results is the turnover of all products formed from scientific and technological results as prescribed in Clause 1 of this Article. 2 Article 13 Decree No. 2019/01/ND-CP dated February 02, 2019 of the Government.

b) Total annual revenue of an enterprise is the total revenue from production, business and service activities, revenue from financial activities and other incomes of the enterprise (total revenue including revenue from production and trading of products formed from scientific and technological results in that year).

3. Revenue generated from services with application of science and technology results in the field of information technology is revenue from new services, excluding services already on the market.

Criteria and basis for determining that a service with application of scientific and technological results in the field of information technology is a new service shall comply with regulations of the Ministry of Science and Technology.

4. Science and technology enterprises must separately account incomes from production and trading activities of products formed from scientific and technological results in the period in order to enjoy corporate income tax incentives. If the enterprise cannot do separate accounting, the income from production and trading of products formed from scientific and technological results entitled to enterprise income tax incentives shall be distributed according to the provisions of Clause 2 of this Article. Clause 18, Article 14 of Law on Corporate Income Tax No. 2008/12/QHXNUMX.

In order to enjoy corporate income tax incentives, science and technology enterprises must comply with the accounting, invoice and document regimes as prescribed by law and pay tax according to declaration.

Article 3. Incentives for corporate income tax exemption and reduction

1. Level and duration of incentives for corporate income tax exemption and reduction

a) Science and technology enterprises are entitled to incentives for exemption and reduction of corporate income tax as prescribed in Clause 1, Article 12 of Decree No. 13/2019/ND-CP dated February 01, 02 of the Government. can: be exempted from tax for 2019 years and reduce 04% of payable tax for the next 50 years.

b) The tax exemption or reduction period for science and technology enterprises shall be counted continuously from the date of issuance of the certificate of science and technology enterprise. In case there is no taxable income in the first three years, counting from the first year of being granted the Certificate of Science and Technology Enterprise, the first year of calculating the tax exemption or reduction period is counted from the fourth year.

c) During the period of being given incentives for tax exemption or reduction of corporate income tax, if in any year the science and technology enterprise fails to satisfy the conditions on turnover of products formed from scientific and technological results; If technology reaches a rate of at least 30% of the enterprise's total annual turnover, that year the science and technology enterprise is not entitled to incentives and shall be deducted from the enterprise's period of enjoyment of corporate income tax incentives. science and technology.

d) In case a science and technology enterprise has earned 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 scientific and technological enterprise shall The technology is selected to enjoy tax exemption or reduction right in that first year or register with the tax authority for the time to start enjoying tax exemption or reduction in the following year. If an enterprise registers for tax exemption or reduction in the following year, it must determine the payable tax amount of the first year and have taxable income to remit into the State budget according to regulations.

2. Some cases apply

a) In case a science and technology enterprise has been or is enjoying enterprise income tax incentives under other preferential conditions (besides the conditions for science and technology enterprise incentives) and is granted a certificate of enterprise income tax; For science and technology enterprises, the period of corporate income tax exemption and reduction according to the conditions of science and technology enterprises is determined by the period of corporate income tax exemption or reduction applicable to scientific and technological enterprises. and technology minus the time of tax exemption and reduction of corporate income tax already enjoyed under other preferential conditions.

b) In case a science and technology enterprise is operating and is enjoying enterprise income tax incentives under the condition that the science and technology enterprise is supplemented by a competent authority with products formed from the results of its operation; If science and technology is included in the certificate of science and technology enterprise, income from production and trading of products formed from additional scientific and technological results shall enjoy tax exemption and reduction incentives. corporate income together with tax exemption and corporate income tax reduction incentives of science and technology enterprises are being enjoyed for the remaining time.

Article 4. Procedures for enterprise income tax incentives

1. Procedures for enterprise income tax incentives shall comply with the provisions of law on corporate income tax and tax administration.

2. Science and technology enterprises themselves determine the enterprise income tax incentives and declare them in the list of enterprise income tax 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 declaration.

Article 5. Enforcement

1. This Circular takes effect from May 01, 3.

2. The enterprise is granted the Certificate of science and technology enterprise and generates revenue and income from production and trading activities of products formed from scientific and technological results from the date of this Decree. 13/2019/ND-CP dated February 01, 02 taking effect (March 2019, 20), they are entitled to tax exemption and reduction of corporate income tax for science and technology enterprises. according to the provisions of Article 3 of Decree No. 2019/12/ND-CP dated February 13, 2019 of the Government and guidance in Articles 01, 02, 2019 and 1 of this Circular.

3. Transition Terms

a) In case an enterprise has been granted a certificate of science and technology enterprise before the effective date of Decree No. 13/2019/ND-CP dated February 01, 02 of the Government, which is in the process of enjoying corporate income tax incentives according to the provisions of legal documents before the effective date of Decree No. 2019/13/ND-CP dated February 2019, 01 of the Government, they continue to be entitled to tax incentives. enjoy incentives for tax exemption and reduction of corporate income tax for the remaining time, and not continue to enjoy incentives in terms of corporate income tax rates from the effective date of this Circular.

b) In case the enterprise has been granted the Certificate of science and technology enterprise before the effective date of the Government's Decree No. 13/2019/ND-CP dated February 01, 02 but has not yet enjoyed the preferential treatment Corporate income tax incentives for science and technology enterprises as prescribed in legal documents before the effective date of Decree No. 2019/13/ND-CP dated February 2019, 01 of the Government. enforcement force, if they meet the conditions for corporate income tax incentives for science and technology enterprises as prescribed in Decree No. 02/2019/ND-CP dated February 13, 2019 of the Government, they will be entitled to enjoy incentives for tax exemption and reduction of corporate income tax as prescribed in Decree No. 01/02/ND-CP dated February 2019, 13 of the Government for the remaining time.

4. This Circular annuls the following provisions:

a) To annul Point 1, Section III of the Joint Circular No. 06/2008/TTLT-BKHCN-BTC-BNV dated June 18, 6 of the Ministry of Science and Technology, the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. Decree No. 2008/80/ND-CP dated May 2007, 19 of the Government on science and technology enterprises.

b) To annul Clause 8, Clause 9, Article 1 of Joint Circular No. 17/2012/TTLT-BKHCN-BTC-BNV dated September 10, 9 of the Ministry of Science and Technology, the Ministry of Finance and the Ministry of Home Affairs, amending , supplementing the Joint Circular No. 2012/06/TTLT-BKHCN-BTC-BNV dated June 2008, 18 of the Ministry of Science and Technology, the Ministry of Finance and the Ministry of Home Affairs guiding the implementation of Decree No. 6/2008 /ND-CP dated 80/2007/19 of the Government on science and technology enterprises.

5. Where legal documents cited in this Circular are amended, supplemented or replaced with new legal documents, the new documents shall apply.

6. In the course of implementation, if any problems arise, organizations and individuals are requested to promptly report them to the Ministry of Finance for study and settlement./.

LIST OF INCOME TAX INCENTIVES FOR SCIENCE AND TECHNOLOGY ENTERPRISE

(Attached to the CIT finalization declaration)

Tax period: from …………. to ……………………

Name of the taxpayer: ………………………………………………………….

Tax code:

Name of tax agent (if any): …………………………………………………….

Number of Certificate of Science and Technology Enterprise: ……………………..

date and place of issue: ……………………………………………………….

List of products formed from scientific and technological results eligible for incentives in the year 20…:

first) ………………………………………………………………………………………………………

first) ………………………………………………………………………………………………………

.....................................................................................................................

A. Determination of revenue conditions to enjoy incentives:

Money unit: Vietnam Dong

B. Determination of CIT amount eligible for incentives:

Money unit: Vietnam Dong

I declare that the above declared data is correct and is responsible before the law for the declared data./.