On December 31st, 2024, the Government issued Decree No. 182/2024/ND-CP regulating the establishment, management, and utilization of the Investment Support Fund, accordingly, there are 04 subjects eligible for support including:
– High-tech enterprises
– Enterprises with investment projects for manufacturing high-tech products
– Enterprises with high-tech application projects
– Enterprises with investment projects for research and development centers
The above enterprises need to meet several conditions as follows:
A minimum project capital of VND 12,000 billion or a minimum project revenue of VND 20,000 billion/year.
Several special cases:
– Industrial sector of chip, semiconductor integrated circuits, artificial data intelligence centers: project capital of VND 6,000 billion or project revenue of VND 10,000 billion/year.
– High technology, high-tech products in the list of high technology, breakthrough high-tech products prioritized for research and development issued by the Prime Minister: do not have to meet capital or revenue scale criteria.
– Microchip design projects: do not have to meet capital or revenue scale criteria but must commit to employing at least 300 Vietnamese engineers and managers after 05 years of operation in Vietnam and annually support Vietnam in training at least 30 high-quality engineers in the field of microchip design.
– For enterprises with investment projects in research and development centers: minimum investment capital of VND 3,000 billion.
Enterprises eligible for support according to revenue condition must meet the revenue conditions in the high-tech sector for the fiscal year in which support is requested, and have no overdue tax debts or budget debts at the time of application dossier.
Enterprises that meet the above conditions will receive financial support and initial investment support. Specifically, beneficiaries of financial support include enterprises operating in the high-tech sector, and initial investment support is targeted at enterprises with investment projects for research and development centers in the semiconductor industry and artificial intelligence (“AI”). In case an enterprise is simultaneously eligible for both types of support, it can only select one type of support according to regulations.
Each enterprise or project can receive support for a maximum period of 05 years unless otherwise decided by the Government. This support is exempt from corporate income tax.
+ Operating expense support:
Eligible enterprises can receive support for the following expenses:
– Human resource training and development costs: Maximum support of 50% of the costs incurred in the fiscal year of the project and actually spent on human resource training and developing activities for Vietnamese workers.
– Research and development costs: From 1% to 30% of eligible research and development expenditures, depending on total research and development costs and each taxpayer.
– Creating fixed asset investment costs: From 1% to 10% of new fixed asset expenditures and a maximum support of 0.5% of the total investment capital of projects that meet the criteria, depending on fixed asset costs and each taxpayer.
– High-tech product manufacturing costs: From 1% to 3% of the domestic value-added manufacturing costs of high-tech products, depending on revenue scale, human resources, and each taxpayer. The value-added of high-tech products is the cost price of all high-tech products sold, excluding royalty fees/technology transfer fees paid to foreign parties and imported material costs.
– Social infrastructure investment costs: Maximum support of 25% of total costs.
+ Initial investment support:
– In case an enterprise has an investment project for research and development centers in the field of the semiconductor industry and artificial intelligence that meet specific criteria and conditions, the enterprise can receive maximum support of 50% of the initial investment costs of the project or another support level as decided by the Government.
The deadline for submitting a support request is July 10th of the year following the fiscal year for which support is requested.
This Decree takes effect from the date of issuance and applies from the fiscal year 2024.
