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Please Sign in your LuatVietnam account and sign up for the lookup software .| Issuing bodies: | Ministry of Finance | Effective date: | |
| Official number: | 03/2021/TT-BTC | Signer: | Tran Xuan Ha |
| Legislation Type: | Circular | Expired date: | Updating |
| Issuing date: | 11/01/2021 | Effect: | |
| Fields: | Enterprise , Tax - Fee - Charge |
Science and technology enterprises are exempted from enterprise income tax for 4 years
The Ministry of Finance issues the Circular No. 03/2021/TT-BTC on guiding enterprise income tax exemption or reduction for science and technology enterprises specified in the Government’s Decree No. 13/2019/ND-CP of February 01, 2019, on science and technology enterprises on January 11, 2021.
Accordingly, science and technology enterprises are entitled to enterprise income tax exemption for 4 years and a 50% reduction of payable enterprise income tax amounts for the subsequent 9 years. The period of tax exemption or reduction for a science and technology enterprise shall be counted consecutively from the date the enterprise is granted a science and technology enterprise certificate. If no taxable income is generated in the first three years from the date the enterprise is granted a science and technology enterprise certificate, the tax exemption or reduction period shall be counted from the fourth year.
Besides, the Circular also prescribes that in a certain year of the enterprise income tax exemption or reduction period, if an enterprise fails to satisfy the condition requiring that turnover from products turned out from scientific and technological outcomes must account for at least 30% of the total turnover, it shall not be entitled to tax incentives in that year and that year shall be included in the enterprise’s incentive enjoyment period. If a science and technology enterprise has generated a taxable income but the production or business operation duration eligible for tax exemption or reduction in the first year is under 12 months, the enterprise may choose to enjoy tax exemption or reduction right in the first year or register for starting to enjoy tax exemption or reduction from the subsequent year.
This Circular takes effect on March 01, 2021.
For further details of the Circular 03/2021/TT-BTC, Click here
