Official Dispatch 1048/BKHCN-PTTTDN guiding the issuance of the Certificate of Science and Technology Enterprise

Dear: Departments of Science and Technology of provinces and cities

To fulfill the responsibilities of the Ministry of Science and Technology as prescribed in Article 19 of Decree No. 13/2019/ND-CP dated February 01, 02 of the Government on science and technology (S&T) enterprises, the Ministry of Science and Technology. and Technology guiding the issuance of certificates of S&T enterprises according to Decree No. 2019/13/ND-CP as follows:

1. Administrative procedures:

On February 28, 02, the Ministry of Science and Technology issued Decision No. 2019/QD-BKHCN announcing newly promulgated administrative procedures and replaced administrative procedures in the field of S&T activities within the scope of the Ministry of Science and Technology. The management functions of the Ministry of Science and Technology are specified in Decree No. 395/13/ND-CP.

The list of administrative procedures announced in the Decision includes:

a) Central administrative procedures:

– Procedures for granting the Certificate of S&T enterprise;

- Procedures for granting change of contents and re-granting the Certificate of S&T enterprise.

b) Provincial administrative procedures:

– Procedures for granting the Certificate of S&T enterprise;

- Procedures for granting change of contents and re-granting the Certificate of S&T enterprise.

Decision No. 395/QD-BKHCN dated February 28, 02 was posted on the web portal of the Ministry of Science and Technology.

2. Conditions for certification of science and technology enterprises:

Pursuant to Article 6 of Decree No. 13/2019/ND-CP, conditions for certification of S&T enterprises include:

a) Established and operated under the Law on Enterprises.

b) Capable of creating or applying S&T results that are evaluated, appraised and recognized by competent agencies as prescribed in Clause 2, Article 7 of the Decree.

Enterprises fall into one of two cases:

- Capable of creating S&T results that are evaluated, appraised and recognized by competent authorities according to regulations. The ability to create S&T results is reflected in enterprises' self-research, development, improvement, and creation of S&T results that are evaluated, appraised and recognized by competent authorities.

- Capable of applying science and technology results evaluated, appraised and recognized by competent authorities according to regulations. The ability to apply S&T results is shown in the fact that enterprises ensure the necessary conditions (specified in form No. 02 in the Appendix issued together with Decree No. 13/2019/ND-CP) to deploy application of science and technology results into production and business activities of enterprises.

c) Satisfy the conditions on turnover ratio.

- For enterprises that have been established for full 5 years or more: having turnover from the production and trading of products formed from scientific and technological results reaching at least 30% of total revenue.

The determination of the turnover ratio for granting the certificate of S&T enterprise: the enterprise declares itself in the application for registration of the certificate of S&T enterprise (it can be declared according to quarterly or annual business results) and is responsible. about the accuracy and legitimacy of the information. The management agency shall base itself on the annual report on the production and business of products formed from the S&T results of the enterprise to manage, review and ensure that the enterprise maintains the certification conditions. S&T enterprises.

– For newly established businesses under 5 years: no need to meet the conditions on turnover ratio.

3. Competence to grant certificates of science and technology enterprises:

The Department of Market Development and Science and Technology Enterprises (Ministry of Science and Technology) shall receive dossiers and issue certificates of S&T enterprises in the following cases:

3.1. Cases of sending dossiers directly to the Department, without a written request:

a) S&T results are formed from special S&T tasks; of importance to socio-economic development, national defense and security nationwide; play an important role in enhancing the national S&T potential; solve science and technology issues related to many branches, fields, and regions, especially environment and health; Information technology - telecommunications infrastructure:

– S&T results formed from special S&T tasks:

Science and technology tasks, especially science and technology topics, scientific projects, pilot production projects, large-scale science and technology projects serving national defense and security, have strong impacts on productivity, quality and competitiveness. The competition of national products shall be considered and decided by the National Assembly or the Prime Minister. The determination of special S&T tasks is based on the criteria for determining and approving the tasks specified in Article 30 of the Government's Decree No. 08/2014/ND-CP dated January 27, 01 detailing and guide the implementation of a number of articles of the Law on Science and Technology.

- Scientific and technological results are important for socio-economic development, national defense and security in the whole country; play an important role in enhancing the national S&T potential; solving science and technology issues related to many branches, fields, and regions, especially environment and health:

+ S&T results formed from S&T tasks using state budget at ministerial and national level;

+ Scientific and technological results in two or more fields specified in Articles 14, 15 and 16 of Circular No. 02/2015/TT-BKHCN dated March 06, 3 of the Ministry of Science and Technology regulating the assessment and appraise the results of performing S&T tasks without using the state budget.

- Scientific and technological results in the field of information technology - telecommunications infrastructure.

b) Enterprises established from transformation of public S&T organizations and registered for S&T activities at the Ministry of Science and Technology.

3.2. Cases in which the application is submitted together with a written request to the Department for a certificate of S&T enterprise:

a) Enterprises have branches, production and business establishments in many provinces and centrally run cities.

In this case, the enterprise can send the application file to the Department of Science and Technology or the Department of Market Development and Science and Technology Enterprise. In case of sending the dossier to the Department, the enterprise shall send a written request to the Department to accept the dossier and grant the certificate of S&T enterprise.

b) Cases at the request of the Department of Science and Technology when the conditions for assessment of S&T results are not yet met.

4. Dossier of application for certification of science and technology enterprises:

Dossier of application for certification of S&T enterprise includes:

a) Request for certification of S&T enterprises using form No. 01 in the Appendix issued together with Decree No. 13/2019/ND-CP;

b) A written certification and recognition of S&T results from a competent authority as specified in Clause 2, Article 7 of Decree No. 13/2019/ND-CP;

c) Plan for production and trading of products formed from S&T results according to form No. 02 in the Appendix issued with Decree No. 13/2019/ND-CP.

For S&T results, it is an asset formed from S&T tasks using state capital in accordance with the Government's Decree 70/2018/ND-CP dated May 15, 05 stipulating the management and use assets formed through the implementation of S&T tasks using state capital, enterprises need to have a decision on assignment of ownership or right to use assets from a competent authority to avoid the following situation: The validity of the certificate of S&T enterprise has been revoked as prescribed in Article 2018 of Decree No. 10/13/ND-CP.

5. Withdrawal or invalidation of the Certificate of Science and Technology Enterprise:

5.1. Withdrawal of the Certificate of S&T enterprise:

a) Cases of withdrawal:

– In case of failure to maintain the turnover rate specified at Point b, Clause 1, Article 10 of Decree No. 13/2019/ND-CP:

+ For enterprises that have been established for full 5 years or more, meeting the conditions of 30% turnover when being granted the certificate of S&T enterprise: 5 consecutive years to consider the revocation of the certificate science and technology enterprises are counted from the first year the enterprise is granted the certificate of science and technology enterprise.

+ For newly established enterprises less than 5 years old, it is not necessary to meet the turnover ratio when being granted the certificate of S&T enterprise: 5 consecutive years to consider the revocation of the certificate of S&T enterprise calculated from the sixth year the enterprise is granted the Certificate of S&T enterprise.

For example: Enterprise A has been established for 5 years or more, achieves a turnover rate of 30%, is granted a certificate of S&T enterprise in 2019. A period of 5 consecutive years to consider withdrawal if not satisfied condition of the turnover ratio is calculated from 2019 - 2023.

Enterprise B, established for less than 5 years, has not yet reached the 30% turnover rate when it is granted the certificate of S&T enterprise in 2019. A period of 5 consecutive years to consider withdrawal if the ratio conditions are not met. revenue is calculated from 2024 – 2028.

– In case of failure to comply with the reporting regime for 03 consecutive years specified at point c, Clause 1, Article 10 of Decree No. 13/2019/ND-CP:

+ Every year, the Department of Science and Technology sends a written request to S&T enterprises operating within the provinces and centrally-run cities to report on the production and business of products formed from the results. science and technology results. After the expiry of the reporting time limit, for enterprises that do not make a report without a written request for an extension specifying the reason, the Department of Science and Technology shall send a written notice to the enterprise of the failure to do so. show report mode.

+ After 3 consecutive years of not making reports, the Department of Science and Technology revokes the Certificate of Science and Technology Enterprise.

b) Legal consequences of having the Certificate of S&T enterprise revoked:

– After the certificate of S&T enterprise is revoked, the enterprise will not continue to enjoy the incentives on exemption and reduction of corporate income tax, land rent, import tax and other State supports for S&T enterprises.

– For incentives and supports with a term of more than 12 months, such as preferential credit loans (including investment credits from the State, support from Science and Technology Development Funds), support to perform tasks For science and technology services using the state budget, enterprises continue to perform until the end of the term of the credit loan contract or the contract to perform S&T tasks.

5.2. Cancellation of the Certificate of S&T enterprise:

a) Cases of invalidation:

– Acts of infringing upon the ownership or right to use S&T results declared in the application for certification of a S&T enterprise:

+ For S&T results that do not originate from the state budget: based on the Court's conclusion that the enterprise has committed acts of infringing upon the ownership or right to use the declared S&T results for certification. S&T enterprises.

+ For S&T results generated from S&T tasks using state capital: the basis for determining infringement is based on a decision on assignment of ownership or right to use by a competent authority (with a decision of a competent authority). decision on whether to assign the right, the scope of the assignment, the time limit for the assignment, etc.).

– There is an act of falsifying the content of the application file for certification of a science and technology enterprise:

+ Acts of forging documents certifying and recognizing S&T results by competent agencies specified at Point b, Clause 2, Article 7 of Decree No. 13/2019/ND-CP;

+ Acts of intentionally declaring false information about the rate of turnover to grant the certificate of S&T enterprise for enterprises that have been established for full 5 years or more.

b) Legal consequences upon invalidation of the Certificate of S&T enterprise:

– When the certificate of science and technology enterprise is invalidated, the enterprise will have to collect the exempted or reduced amounts for the science and technology enterprise and be handled according to the provisions of law.

6. Report on the development of science and technology enterprises:

At the request of the Department of Market Development and Science and Technology Enterprises, the Department of Science and Technology requested S&T enterprises operating in the locality to provide information on the production and business situation of products formed from the results. science and technology results, prepare reports on the development of S&T enterprises of provinces and cities and send them to the Department of Market Development and S&T enterprises.

Dear Departments of Science and Technology of provinces and cities, research and organize the issuance of certificates of science and technology enterprises according to the provisions of Decree No. 13/2019/ND-CP. During the implementation process, if there are any difficulties, problems or recommendations related to the implementation of the Decree, please send them to the Ministry of Science and Technology to summarize and report to the competent authorities for settlement.