Establishment of the Science and Technology Development Fund without notifying the competent authority: Is it subject to penalties?
Is establishing a Science and Technology Development Fund without notification to the competent authorities subject to penalties?
According to point a, clause 1, Article 13 of Decree 51/2019/ND-CP regarding violations of regulations on registration, management, and use of the Science and Technology Development Fund, as follows:
Violations of regulations on registration, management, and use of the Science and Technology Development Fund
1. Fines ranging from 4,000,000 VND to 8,000,000 VND for the following acts:
a) Failure to notify the establishment of the Science and Technology Development Fund to the competent state agency in science and technology as prescribed;
b) Failure to report the appropriation and use of the Science and Technology Development Fund as required by the competent state agency.
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According to clauses 2 and 3, Article 3 of Decree 51/2019/ND-CP on forms of penalties, fine levels, and authority to impose penalties, as follows:
Forms of penalties, fine levels, and authority to impose penalties
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2. The maximum fine level in science and technology activities, technology transfer activities for individuals is 50,000,000 VND, for organizations is 100,000,000 VND.
3. The fine levels specified in Chapter II of this Decree are applicable to individuals. Organizations committing the same violations will have the fine level doubled.
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Thus, an enterprise establishing a Science and Technology Development Fund without notifying the competent authorities may be subject to administrative penalties with fines ranging from 8,000,000 VND to 16,000,000 VND.
Is establishing a Science and Technology Development Fund without notification to the competent authorities subject to penalties?
What is the statute of limitations for administrative penalties against enterprises establishing a Science and Technology Development Fund without notification to the competent authorities?
According to point a, clause 1, Article 6 of the Law on Handling of Administrative Violations 2012, as amended by point a, clause 4, Article 1 of the Law on Amendments to the Law on Handling of Administrative Violations 2020, on the statute of limitations for handling administrative violations, as follows:
Statute of limitations for handling administrative violations
1. The statute of limitations for administrative penalties is stipulated as follows:
a) The statute of limitations for administrative penalties is 01 year, except for the following cases:
Administrative violations in accounting; invoicing; fees, charges; insurance business; price management; securities; intellectual property; construction; fisheries; forestry; water resources investigation, planning, exploration, exploitation, use; oil and gas activities and other mineral activities; environmental protection; atomic energy; management and development of houses and working offices; land; dikes; journalism; publishing; production, export, import, trading of goods; production, trading of prohibited goods, counterfeit goods; labor management abroad have a statute of limitations for administrative penalties of 02 years.
Administrative violations in taxation will have the statute of limitations for administrative penalties as prescribed by the law on tax administration;
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According to the above regulation, the statute of limitations for administrative penalties against enterprises establishing a Science and Technology Development Fund without notifying the competent authorities is 01 year.
What are the investment activities of an enterprise's Science and Technology Development Fund?
Based on Article 10 of Decree 76/2018/ND-CP on the Science and Technology Development Fund of an enterprise, as follows:
Science and Technology Development Fund of an enterprise
1. The investment activities of the Science and Technology Development Fund of an enterprise as stipulated in clause 2, Article 35 of the Law on Technology Transfer include:
a) Investing and matching investment capital for creative startups;
b) Technology innovation, technology incubation, incubation of science and technology enterprises, commercialization of scientific research and technology development results;
c) Technology decoding, investing in technical infrastructure for technology decoding activities;
d) Hiring domestic and foreign organizations and individuals to consult and manage the investment activities of the Science and Technology Development Fund of the enterprise according to the contracts between the parties.
2. Investment and matching investment capital for creative startups shall be implemented as follows:
a) Contributing capital to establish creative startup enterprises;
b) Purchasing shares, stakes in creative startup enterprises;
c) Contributing capital to creative startup investment funds;
d) Business cooperation.
3. Investment and matching investment capital as stipulated in clause 2 of this Article shall be implemented within the business fields and sectors of the enterprise and comply with the provisions of the Law on Investment, the Law on Enterprises, the Law on Supporting Small and Medium Enterprises, and other relevant legal provisions.
4. State-owned enterprises implementing the activities stipulated in clause 2 of this Article must comply with the provisions on management and use of state capital invested in business and production of enterprises.
Thus, the investment activities of the Science and Technology Development Fund of an enterprise include the following:
+ Investing and matching investment capital for creative startups.
+ Technology innovation, technology incubation, incubation of science and technology enterprises, commercialization of scientific research and technology development results.
+ Technology decoding, investing in technical infrastructure for technology decoding activities.
+ Hiring domestic and foreign organizations and individuals to consult and manage the investment activities of the Science and Technology Development Fund of the enterprise according to the contracts between the parties.
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