The Vietnamese government has issued a decree allowing for corporate tax cuts and exemptions, credit incentives, and lessened or exempted land and water surface-lease fees for science and technology companies in the nation. Effective March 20, the decree is expected to increase incentives and support policies for the over 380 domestic companies classified as science and technology firms and 43 certified high-tech organizations.
According to the decree, companies that have generated income from the development or commercialization of products created as a result of scientific and technological R&D will be eligible for corporate tax reductions and exemptions, an incentive similar to that given to R&D projects with new investments. These science and technology companies will be exempt from corporate taxes for the next 4 years, as well as receive a 50% reduction in corporate taxes for the next 9 years. In order to qualify for tax incentives for the fiscal year, these companies’ science and technological projects must make up a minimum of 30% of total revenue.
Companies will also be offered credit incentives, with projects funded by the federal National Technological Innovation Fund and the Science and Technology Development Fund qualifying to receive loans with competitive interest rates or guarantees allowing for loans from banks. The decree also offers import and export tax incentives for R&D, production and other company operations. In addition to the financial incentives, science and technology companies will not be required to pay fees for utilizing equipment and facilities at national labs, federally owned research and technology facilities, and technology incubators, as they will only be obligated to purchase the raw materials needed to conduct R&D activities.
Source: Vietnam Briefing