On January 11th, 2021, The Ministry of Finance issued Circular No. 03/2021/TT-BTC guiding on CIT exemption, reduction policy for science and technology enterprises, whereby:
Enterprises are eligible for applying these tax incentives science and technology enterprises if they meet the following conditions:
- Being issued with the Science and Technology Enterprises Certificate by the competent state agency.
- The annual revenue from production and business activities of science and technology products reaches at least 30% of the enterprises’ total annual revenue.
- Revenue generated from services applying scientific and technological results in information technology are revenues from new services, excluding services already on the market.
- Science and Technology Enterprises must separately account for the revenue from production, business activities of science and technology products within the tax period to enjoy the CIT
Entitled science and technology enterprises shall enjoy CIT exemption in 04 years and a 50% reduction for the following 09 years.
CIT exemption, reduction period shall be calculated consecutively from the Science and Technology Enterprises Certificate issuance date. If there is no taxable income for the first 03 years from Science and Technology Enterprises Certificate issuance date, the CIT exemption, reduction period will start from the fourth year.
Circular No. 03/2021/TT-BTC shall take effect from March 1st, 2021.
