Funding Sources for Initiative Activities

Circular 03 stipulates the funding sources for implementing innovation activities, including:

- State budget funds allocated in the annual budget expenditure estimates according to budget management decentralization to implement innovation activities under the responsibility of state management agencies and public service providers, in which:

- The state budget ensures full funding for innovation activities at state management agencies (budget for the operational activities of state management agencies) and public service providers fully funded by the state (operational budget for the service units).

- Public service providers, which are self-funded partially for regular activities, are supported partly by the state budget in the unit's annual budget expenditure estimate based on the unit's revenue capability and may use the development fund for the unit's operational activities to implement innovation activities.

- Public service providers, which are self-funded for regular and investment expenditures, and public service providers which are self-funded for regular expenditures, may use the unit's development fund for operational activities to implement innovation activities.

- Funding from enterprises to implement the enterprise's innovation activities. To be specific:

- The level of expenditure for the enterprise's innovation activities is determined by the enterprise based on principles of economy and efficiency and must be specified in the enterprise's internal spending regulations.

- The accounting of innovation and improvement rewards into deductible expenses when determining taxable income is implemented according to the provisions of corporate income tax law.

- In cases where enterprises use the enterprise's science and technology development fund to implement innovation activities, the enterprise must ensure compliance with regulations on fund expenditure content and management according to legal provisions and other related regulations.

- Funds mobilized from other legitimate sources.

See details at Circular 03/2019/TT-BTC, which takes effect from March 3, 2019.

- Thao Uyen -

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