When can enterprises be eligible for outstanding interest write-off by the National Technology Innovation Foundation in Vietnam?
- When can enterprises be eligible for outstanding interest write-off by the National Technology Innovation Foundation in Vietnam?
- When should an enterprise facing risks to request outstanding interest write-off with the National Technology Innovation Foundation in Vietnam?
- In which cases is the enterprise facing risks considered by the National Technology Innovation Foundation to write off outstanding interest?
- Circular No. 03/2023/TT-BKHCN takes effect from July 1, 2023.
When can enterprises be eligible for outstanding interest write-off by the National Technology Innovation Foundation in Vietnam?
Pursuant to the provisions of Clause 2, Article 15 of Circular No. 03/2023/TT-BKHCN stipulating as follows:
Outstanding interest write-off
…
2. An enterprise may be eligible for outstanding interest write-off when meeting all of the following requirements:
a) It is an entity mentioned in Clause 1 of this Article;
b) It has used the borrowed funds for the purposes specified in the contract;
c) It faces difficulties during business resulting in its loss within at least two (02) years preceding the year of risk treatment, or accumulated losses incurred within 01 year preceding the year of risk treatment (if the enterprise has operated for a period less than 02 years), and its failure to repay debt (principal and/or interest) in full and on schedule as agreed upon in the signed contract (except the case specified in Clause 4 Article 6 hereof);
d) It has a viable production and business plan and a debt repayment plan after the outstanding interest is written off (unless it is made bankrupt);
dd) It has submitted an adequate application for risk treatment as prescribed in Clause 5 of this Article;
e) With regard to the case prescribed in Clause 1, Clause 2 Article 6 hereof: Despite the adoption of the risk treatment measure prescribed in Article 12 or Article 13 hereof, there is still outstanding interest that needs to be collected;
g) With regard to the case prescribed in Clause 4 Article 6 hereof: Despite the adoption of the risk treatment measure prescribed in Article 12 or Article 13 hereof, there is still outstanding interest that needs to be collected.
Thus, the enterprise is considered by the Foundation to write off outstanding interest or the Foundation proposes to write off outstanding interest when fully meeting the requirements as prescribed above.
When can enterprises be eligible for outstanding interest write-off by the National Technology Innovation Foundation in Vietnam?
When should an enterprise facing risks to request outstanding interest write-off with the National Technology Innovation Foundation in Vietnam?
Pursuant to the provisions of Clause 5, Article 15 of Circular No. 03/2023/TT-BKHCN as follows:
Outstanding interest write-off
…
5. The enterprise or NATIF may apply for outstanding interest write-off:
a) If an enterprise faces risks as prescribed in Clause 1, Clause 2 Article 6 hereof, it may prepare an application for outstanding interest write-off as prescribed in Clause 5 Article 9 hereof;
b) NATIF shall request the outstanding interest write-off for the enterprise that faces risks as prescribed in Clause 4 Article 6 hereof. NATIF shall prepare an application for outstanding interest write-off which contains:
- The written application for risk treatment made by NATIF, indicating the following: the enterprise’s business situation, debt repayment (principal, interest) under the contract, associated risks and their causes, the level of capital and property damage incurred by the enterprise, the book value of the debt. The application for risk treatment must specify the adopted risk treatment measures and associated results (if any), and proposed risk treatment measures;
- The record of capital and asset damage incurred by the enterprise (the enterprise’s certification thereon is not required);
- Propose risk treatment for part or all of the book value of the debt;
- The original of the decision to declare bankruptcy issued by the civil judgment enforcement agency;
- Other documents and instruments as prescribed by law regulations (if any).
Thus, the enterprise may apply for outstanding interest write-off in the following cases:
- Enterprises suffer financial and/or property damage due to disasters in accordance with regulations of law on prevention and control of disasters, calamities, crop failure, epidemics, fire, war events or national state of emergency.
- An enterprise that is at risk because its owner (for a sole proprietor or a one-member limited liability company) loses his/her active legal capacity, dies, disappears, or leaves no property to repay their debts;
- An enterprise that has ceased operations, and it lacks assets and financial resources to clear its debts; an enterprise that faces risks due to other objective causes including unforeseen accidents, political risks, changes in State policies that directly impact its production and business operations, resulting in financial losses, difficult financial circumstances, or default on debts (principal or interest).
In which cases is the enterprise facing risks considered by the National Technology Innovation Foundation to write off outstanding interest?
Pursuant to Clause 1, Article 15 of Circular No. 03/2023/TT-BKHCN stipulating as follows:
Outstanding interest write-off
1. Enterprises facing risks as prescribed in Clause 1, 2 or 4 Article 6 of this Circular are eligible for outstanding interest write-off.
Thus, enterprises facing risks are considered by the National Technology Innovation Foundation to write off outstanding interest in the following cases:
- Enterprises suffer financial and/or property damage due to disasters in accordance with regulations of law on prevention and control of disasters, calamities, crop failure, epidemics, fire, war events or national state of emergency.
- An enterprise that is at risk because its owner (for a sole proprietor or a one-member limited liability company) loses his/her active legal capacity, dies, disappears, or leaves no property to repay their debts;
- An enterprise that has ceased operations, and it lacks assets and financial resources to clear its debts; an enterprise that faces risks due to other objective causes including unforeseen accidents, political risks, changes in State policies that directly impact its production and business operations, resulting in financial losses, difficult financial circumstances, or default on debts (principal or interest).
- The enterprise has completed the bankruptcy process in accordance with current law.
Circular No. 03/2023/TT-BKHCN takes effect from July 1, 2023.
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