Tax policies for scientific and technological activities in Vietnam

Tax policies for scientific and technological activities in Vietnam​ (Image from the Internet)

1. Tax policies for scientific and technological activities in Vietnam

According to Article 64 of the Law on Science and Technology 2013, the following cases are eligible for tax incentives according to tax laws:

- Income from executing scientific research and technology development contracts;

- Income from products made from new technology applied for the first time in Vietnam; products undergoing trial production;

- High technology enterprises, agricultural enterprises applying high technology, and some activities in the field of high technology;

- Science and technology services;

- Machinery, equipment, spare parts, materials not yet produced domestically needed for importation for direct use in scientific research and technology development activities;

- Financial sponsorship from organizations and individuals for scientific research activities; grants received for use in scientific research activities;

- Technology transfer in priority fields to organizations and individuals in economically disadvantaged and specially disadvantaged areas;

- Other cases as stipulated in tax laws.

2. Credit policies for science and technology activities in Vietnam

The credit policies for science and technology activities in Vietnam is stipulated under Article 65 of the Law on Science and Technology 2013:

- Organizations and individuals engaged in science and technology activities borrowing medium and long-term capital for scientific and technological activities enjoy preferential interest rates when borrowing from the National Fund for Science and Technology Development and other State funds.

- Organizations and individuals borrowing funds for investment in science and technology activities receive credit incentives according to the regulations of the fund they borrow from.

- Organizations and individuals borrowing from commercial banks to invest in science and technology activities, particularly experimental deployment and trial production activities, receive post-investment interest rate support or investment credit guarantees from the Vietnam Development Bank, allocating a certain credit balance ratio for scientific and technological activities.

- Programs, projects, and scientific and technological tasks directly serving the State's key socio-economic programs and developing national science and technology potential, especially projects requiring large capital deployment, are prioritized for official development assistance funding through the following methods:

+ Non-reimbursable funding or preferential loans for scientific research and technology development activities;

+ Loans for projects to develop scientific and technological potential or recoverable loans for projects applying scientific research and technology development results.

3. Regulations on building technical infrastructure for science and technology development in Vietnam

According to Article 66 of the Law on Science and Technology 2013, regulations on building technical infrastructure to serve science and technology development are as follows:

- The State has a policy of comprehensive investment and efficient use of the physical and technical facilities of national science and technology research institutions; encourages and supports the construction of centers for applied research of scientific and technological advancements, high-tech zones, technology parks; upgrades and builds new research centers in higher education institutions to link training with scientific research, application, deployment, and commercialization of new technologies.

- Based on socio-economic development goals and national science and technology development strategies, the Ministry of Science and Technology, in coordination with relevant ministries and agencies, is tasked with constructing and submitting to the Prime Minister of the Government of Vietnam a plan for building the physical and technical facilities of important scientific and technological organizations; focusing on national key laboratories that meet regional and international standards; and the national science and technology database.

- Ministries, ministerial-level agencies, Government-affiliated agencies, and other central governmental bodies mobilize capital to invest in building the physical and technical facilities of their affiliate scientific and technological organizations.

- Provincial People's Committees decide on investment plans for building the physical and technical facilities of local scientific and technological organizations.

- The Ministry of Science and Technology, in collaboration with relevant agencies, inspects and supervises the use of State budget for the development of science and technology in ministries, central authorities, and localities, and periodically reports to the Prime Minister of the Government of Vietnam.

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