09:27 | 17/04/2019 Science - Technology
(VEN) - A government decree that took effect on March 20 provides corporate income tax and land and water surface rent exemptions and reductions for science and technology (sci-tech) enterprises, opening up new development opportunities.
The decree covers a wide array of research and production - from utility solutions, industrial designs, integrated circuits designs, to new livestock breeds, new plant varieties, new aquatic breeds, and any other technological advancement recognized by the Ministry of Agriculture and Rural Development.
As of early this year, there were about 3,000 sci-tech enterprises in Vietnam, only some 400 of which had been certified.
According to Nguyen Ky Phung, Deputy Director of the Ho Chi Minh City Department of Science and Technology, Decree 13/2019/ND-CP is expected to provide sci-tech enterprises with new development opportunities, as it offers reductions and exemptions in land and water surface rents. Eligible firms will be exempt from corporate tax for four years and get a reduction of 50 percent in the nine following years.
Decree 13, as it is known, is expected to facilitate the commercialization of scientific and technological research by easing problems related to new product recognition, consumer psychology, the commercialization of products designed for low-income earners, and intellectual property rights protection.
According to the new decree, sci-tech enterprises can use science and technology development funds raised by enterprises and other lawful capital sources to commercialize their scientific and technological research results. At the same time, they will receive priority in participating in state projects for facilitating the commercialization of scientific and technological research results and intellectual property.
Businesses with feasible scientific and technological development projects will get loans with preferential interest rates from the national fund for technological renewal and from the fund for scientific and technological development of the Ministry of Science and Technology or will be guaranteed loans from commercial banks.
Tran Anh Tuan, CEO and Member of the Board of Directors of the Sao Bac Dau Technologies Corporation said Decree 13/2019/ND-CP is expected to provide many new development opportunities for sci-tech enterprises. It is crucial for sci-tech enterprises to work hard and develop new products of high quality to take advantage of the decree’s incentives, Tuan said.
Highlights of Government Decree 13/2019/ND-CP are preferential policies for sci-tech enterprises, which are
compliant with corporate income tax, land and investment credit laws.