On July 3rd, 2020, The Ministry of Information and Communications issued Circular No. 13/2020/TT-BTTTT on determining software production activities that meet the process requirements to enjoy the Corporate Income Tax (CIT) incentives. Whereby:
On the software production process: The stages in the software production process include: Determining the requirement; Analyzing and designing; Programing; coding; Checking; testing the software; Completing; packaging the software product; Installing; transferring; providing instructions; maintenance; software product warranty; Publishing; software product distribution.
On determining software production activities that meet the process requirements:
- Production of a software by organizations, enterprises as stipulated in Article 3 of this Circular is determined as meeting the process requirements, if the organization, enterprise implements at least one of the two following stages: Determining the requirement; Analyzing and designing as prescribed respectively in Clause 1 and Clause 2 Article 3 of this Circular.
- The software production activities that meet the process requirements as prescribed in Clause 1 is illustrated by one or many dossiers, corresponding to each operation of stages that were performed by such organizations, enterprises.
Software production activities that have been considered to meet the process requirements as prescribed before this Circular takes effect will still be considered to have met the process requirements until the expiry of the approved investment project.
The enterprise during the implementation of software production activities to meet the process requirements for enjoying the tax incentives shall bear the following responsibility:
- Taking full responsibility for the authenticity of the information in the application for tax incentives on software production activities and self-determine the production activities that meet the process requirements.
- Submitting, updating the information about software products; stages in the production of software that meet the process requirements, the deductible tax rates to The Ministry of Information and Communications for synthesis.
- Ensuring that the production of software and software products shall not violate the intellectual property law and other relevant law regulations.
This Circular shall replace the Circular No. 16/2014/TT-BTTTT and take effect from August 19th ,2020.
