Circular 33/2025/TT-BKHCN criteria for enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives

CIRCULAR

Prescribing the criteria for enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives

Pursuant to the Law on the Digital Technology Industry No. 71/2025/QH15;

Pursuant to the Law on Corporate Income Tax No. 67/2025/QH15;

Pursuant to the Government’s Decree No. 55/2025/ND-CP defining the functions, tasks, powers and organizational structure of the Ministry of Science and Technology;

At the request of the Director of the Authority of Information Technology Industry;

The Minister of Science and Technology hereby promulgates the Circular prescribing the criteria for enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives.

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

Circular details Clause 5, Article 40 of the Law on the Digital Technology Industry, regarding the criteria for enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives.

2. Subjects of application

This Circular applies to agencies, organizations, and enterprises involved in electronic device manufacturing projects in Vietnam.

Article 2. Interpretation of terms

1. Electronic device manufacturing project defined in this Circular means any project engaged in the manufacturing of electronic products, computers, and communication equipment classified under Section C.26 (Electronic products, computers, and optical products) of the Vietnam Product System promulgated by the Prime Minister.

2. Vietnamese organizations and enterprises defined in this Circular mean organizations and enterprises established or registered for establishment in accordance with the law of Vietnam and having their head offices located in Vietnam; and not falling into the cases specified at Points a, b and c Clause 1 Article 23 of the Law on Investment. In the event that Points a, b, and c, Clause 1, Article 23 of the Law on Investment are amended, supplemented, or replaced, the newly promulgated provisions shall prevail.

Article 3. Criteria for enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives

Enterprises implementing electronic device manufacturing projects eligible for corporate income tax incentives must satisfy one of the following criteria:

1. The criteria for using semiconductor chip products designed, manufactured, or packaged and tested in Vietnam in products of electronic device manufacturing projects shall be satisfied if the chip products meet either of the following conditions:

a) The used semiconductor chip products are designed and owned by a Vietnamese organization, enterprise, or individual, with ownership established through self-design, engagement of others, including Vietnamese nationals, to perform the design, or acquisition of the design from another entity;

b) The used semiconductor chip products are manufactured, packaged, or tested at factories or production lines located in Vietnam.

2. The criteria regarding scientific research, technological development, and innovation require that an enterprise simultaneously satisfy the following two conditions:

a) The enterprise must maintain a scientific research, technological development, and innovation department with a minimum of 10 personnel holding at least a university degree, of which at least 50% must be Vietnamese citizens.

For small- and medium-sized enterprises as defined under the Law on Support for Small- and Medium-sized Enterprises, maintaining a dedicated scientific research, technological development, and innovation department is not mandatory; however, such enterprises must have at least 3 personnel holding at least a university degree engaged in these activities, of which at least 50% must be Vietnamese citizens.

b) The enterprise must ensure that its total expenditure on scientific research, technological development, and innovation activities reaches at least 2% of the average net revenue over 3 consecutive financial years, or at least VND 200,000,000,000 per year over 3 consecutive financial years. In case the enterprise has been operating for less than 3 years, the average shall be calculated over the entire period of operation since establishment, provided that such period shall not be less than one full financial year.

3. The products of the electronic device manufacturing project in Vietnam shall have designs (including requirements specifications, system architecture, detailed design, schematic diagrams, printed circuit board (PCB) layout, and related technical documentation) owned by the enterprise itself. Such ownership shall be established either through self-execution of the design, by engaging others including Vietnamese personnel to perform the design, or by purchasing the design from other entities.

4. Criteria for domestic supply chain development and technology transfer:

a) At least 30% of the enterprises involved in and performing contracts for assembly, supply of raw materials, supplies, components, or services directly serving the electronic device manufacturing project shall be Vietnamese enterprises;

b) Technology transfer must be conducted to at least one Vietnamese organization or enterprise within 5 years from the date of issuance of the investment registration certificate, the decision on approval of investment policy, or a written agreement with the competent state agency. The form and content of such technology transfer shall comply with the law on technology transfer.

Article 4. Implementation organization

1. This Circular takes effect from January 01, 2026.

2. Enterprises implementing electronic device manufacturing projects defined in this Circular shall:

a) Self-verify compliance with the criteria prescribed in this Circular in order to be eligible for corporate income tax incentives, and assume full responsibility for the accuracy of the information provided;

b) Provide and update information regarding the electronic device manufacturing projects benefiting from the incentives on the National Digital Industry Information System.

3. The Chief of Office, Director of the Authority of Information Technology Industry, and heads of relevant agencies, organizations, enterprises, and individuals shall implement this Circular.

4. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Science and Technology (the Authority of Information Technology Industry) for consideration, guidance, or amendment and supplementation./.