Decree No. 13/2019/ND-CP science and technology enterprises

DECREE

On science and technology enterprises^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 18, 2013 Law on Science and Technology;

Pursuant to the November 26, 2014 Law on Enterprises;

Pursuant to the November 26, 2014 Investment Law;

Pursuant to the November 29, 2013 Land Law;

At the proposal of the Minister of Science and Technology;

The Government promulgates the Decree on science and technology enterprises.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation and subjects of application

1. Scope of regulation

This Decree details and guides the implementation of Article 58 of the Law on Science and Technology regarding science and technology enterprises.

2. Subjects of application

This Decree applies to:

a/ Enterprises established and operating in accordance with Vietnam’s law and conducting production, business and service activities which stem from science and technology results;

b/ Other organizations and individuals engaged in the certification of science and technology enterprises and implementation of the State’s policies on incentives and supports for science and technology enterprises.

Article 2.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Products formed from science and technology results (including post-incubation technologies, goods, products, services and other forms) means results of the process of production or service provision based on the application or development of science and technology results.

2. Land for construction of scientific research facilities of science and technology enterprises means land for construction of laboratories, technology incubation and science and technology enterprise incubation facilities, experimental facilities, and trial production facilities.

Article 3.Science and technology results

1. Results of science and technology activities, results of the performance of science and technology tasks, and results of the scientific research and technological development are collectively referred to as science and technology results. Science and technology results serve as a basis for consideration and grant of science and technology enterprise certificates.

2. Science and technology results take one of the following forms:

a/ Inventions, utility solutions, industrial designs, semi-conductor integrated circuit layout designs, and plant varieties which have been granted protection titles in accordance with the law on intellectual property or recognized as being internationally registered under treaties to which Vietnam is a contracting party; computer programs which have been granted certificates of registration of copyright;

b/ New animal breeds, new plant varieties, new aquatic animal breeds, new forestry plant varieties, and technical advances which have been recognized by the Ministry of Agriculture and Rural Development;

c/ Results of the performance of tasks which have been awarded science and technology prizes organized or jointly organized by, or organized under the permission of, competent state agencies in accordance with the law on science and technology prizes;

d/ Science and technology results which have been certified or recognized by competent agencies in accordance with law.

dd/ Transferred technologies which have been certified by competent agencies in accordance with law.

3. Enterprises implementing new investment projects in scientific research and technological development means enterprises using science and technology results to implement new production and business projects or to replace all existing technologies in their production and business activities.

Article 4.Science and technology enterprise certificates

1. Science and technology enterprise certificates serve as a basis for the implementation of policies on incentives and supports for science and technology enterprises and are valid nationwide.

2. Science and technology enterprise certificates are concurrently certificates of registration of science and technology activities.

3. Science and technology enterprise certificates serve as a basis for the application of investment incentives to science and technology enterprises.

Chapter II

CERTIFICATION OF SCIENCE AND TECHNOLOGY ENTERPRISES

Article 5.Competence to grant, modify, re-grant, revoke and invalidate science and technology enterprise certificates

1. Provincial-level People’s Committees of localities where enterprises are headquartered shall receive dossiers and grant science and technology enterprise certificates, except the cases specified in Clause 2 of this Article.

2. The National Agency for Technology Entrepreneurship and Commercialization Development under the Ministry of Science and Technology shall assist the Minister of Science and Technology in receiving dossiers and grant science and technology enterprise certificates in the following cases:

a/ Science and technology results are obtained from the performance of special science and technology tasks; have great importance to national socio-economic development, national defense and security; play an important role in improving national science and technology potential; help address scientific and technological issues concerning more than one sector or region, particularly those in the fields of environment and healthcare; or relate to information technology-telecommunications infrastructure.

b/ Enterprises are transformed from public science and technology organizations and register science and technology activities with the Ministry of Science and Technology;

c/ Provincial-level Science and Technology Departments are technically incapable of evaluating science and technology results and request in writing the National Agency for Technology Entrepreneurship and Commercialization Development to consider and grant science and technology enterprise certificates;

d/ Enterprises have branches or production and businesses establishments in more than one province or centrally run city and request in writing the National Agency for Technology Entrepreneurship and Commercialization Development to consider and grant science and technology enterprise certificates.

3. Provincial-level Science and Technology Departments shall send copies of science and technology enterprise certificates granted under Clause 1 of this Article to the National Agency for Technology Entrepreneurship and Commercialization Development and related agencies for implementation of incentive and support policies.

4. The National Agency for Technology Entrepreneurship and Commercialization Development shall send copies of science and technology enterprise certificates granted under Clause 2 of this Article to provincial-level Science and Technology Departments of localities where concerned enterprises are headquartered or independent cost-accounting branches of these enterprises are based. Provincial-level Science and Technology Departments shall send copies of such certificates to related agencies for implementation of incentive and support policies.

5. The agency that grants a science and technology enterprise certificate is competent to modify, re-grant, revoke and invalidate such certificate.

Article 6.Conditions for grant of science and technology enterprise certificate

1. An enterprise shall be granted a science and technology enterprise certificate if meeting the following conditions:

a/ Being established and operating in accordance with the Law on Enterprises;

b/ Being capable of creating or applying science and technology results evaluated, appraised and recognized by competent agencies under Clause 2, Article 7 of this Decree;

c/ Having turnover from the production of and trading in products formed from science and technology results accounting for at least 30% of the total turnover.

2. Enterprises which have been established for less than 5 years and meet the conditions prescribed at Points a and b, Clause 1 of this Article shall be recognized as science and technology enterprises.

Article 7.Procedures and dossiers of application for certification as science and technology enterprise

1. An enterprise which meets the conditions prescribed in Article 6 of this Decree shall send 1 set of dossier of application for certification as science and technology enterprise to a competent agency specified in Article 5 of this Decree. The dossier may be submitted directly or online or sent by post.

2. A dossier of application for certification as science and technology enterprise must comprise:

a/ An application for certification as science and technology enterprise, made according to Form No. 1 provided in the Appendix to this Decree;

b/ A document certifying or recognizing science and technology results, issued by a competent agency (to submit a copy and produce the original for comparison or to submit a certified copy), which may be:

- An intellectual property rights protection title;

- A decision on recognition of a new plant variety, new animal breed, new aquatic animal breed, new forestry plant variety or technical advance;

- A certificate of award, for task performance results which have been awarded science and technology prizes organized or jointly organized by, or organized under permission of, competent state agencies;

- A decision recognizing results of the performance of a state budget-funded science and technology task or certificate of registration of results of the state budget-funded science and technology task performance; a document certifying or recognizing results of the performance of a science and technology  task not funded by the state budget;

- A certificate of registration of technology transfer; or

- Another certifying or recognizing document of equivalent validity.

c/ The plan on production of and trading in products formed from science and technology results, made according to Form 2 provided in the Appendix to this Decree.

Article 8.Appraisal of dossiers and grant of science and technology enterprise certificates

1. Within 3 working days after receiving a dossier of application for certification as science and technology enterprise, the agency competent to grant science and technology enterprise certificates shall notify the applying enterprise of the validity of the dossier, clearly stating which documents or contents need to be amended or supplemented and the time limit for amendment or supplementation, if the dossier is invalid.

2. Within 10 working days after receiving a valid dossier, the agency competent to grant science and technology enterprise certificates shall consider granting or refusing to grant a science and technology enterprise certificate. Science and technology enterprise certificates shall be made according to Form No. 3 provided in the Appendix to this Decree.

For science and technology results which relate to more than one sector or field and have complicated contents requiring invitation of experts or formation of a consultancy council to conduct appraisal and evaluation, the time limit for grant of a science and technology enterprise certificate must not exceed 15 working days from the date of receipt of a valid dossier.

3. In the case specified at Point c, Clause 2, Article 5 of this Decree, after receiving a complete and valid dossier, within 5 working days, the concerned provincial-level Science and Technology Department shall send an official letter enclosed with the whole dossier of application for science and technology enterprise certificate to the National Agency for Technology Entrepreneurship and Commercialization Development for the latter to consider and grant a science and technology enterprise certificate.

4. Within 5 working days after granting a science and technology enterprise certificate to an enterprise, the agency granting the certificate shall publish on its website information about the name and address and list of products formed from science and technology results of such enterprise.

Article 9.Modification and re-grant of science and technology enterprise certificates

1. A science and technology enterprise shall send 1 set of dossier of request for modification or re-grant of science and technology enterprise certificate to a competent agency specified in Article 5 of this Decree in the following cases:

a/ There are changes in enterprise registration information;

b/ The list of products formed from science and technology results is supplemented;

c/ The science and technology certificate is lost, burnt, torn, ragged, or otherwise damaged.

2. A dossier of request for modification or re-grant of a science and technology enterprise certificate may be submitted directly or online or sent by post, comprising:

a/ A request for modification or re-grant of a science and technology enterprise certificate, made according to Form No. 4 provided in the Appendix to this Decree;

b/ Documents proving changes of enterprise registration information, for cases of changing enterprise registration information;

c/ The documents prescribed at Points b and c, Clause 2, Article 7 of this Decree, in case of supplementing the list of products formed from science and technology results.

3. Within 5 working days after receiving a valid dossier, the competent agency shall consider agreeing or disagreeing to modify or re-grant the science and technology enterprise certificate. In case of supplementing the list of products formed from science and technology results, the time limit for modification of the certificate is 10 working days from the date of receipt of a valid dossier.

Article 10.Revocation and invalidation of science and technology enterprise certificates

1. A competent agency specified in Article 5 of this Decree shall decide to revoke a science and technology enterprise certificate and notify the concerned enterprise in the following cases:

a/ The science and technology enterprise has its enterprise registration certificate revoked;

b/ The enterprise’s turnover from the production of and trading in products formed from science and technology results has not reached 30% of the total turnover for 5 consecutive years, except enterprises which have been granted science and technology enterprise certificates for less than 5 years;

c/ The science and technology enterprise has failed to comply with the reporting regime as prescribed for 3 consecutive years;

d/ The science and technology enterprise certificate was grantedultra vires.

Enterprises that have their science and technology enterprise certificates revoked are no longer entitled to incentive and support policies for science and technology enterprises.

2. A competent agency shall decide to invalidate a science and technology enterprise certificate and notify violations committed by the concerned enterprise in the following cases:

a/ The enterprise has committed an act of infringing upon the ownership or right to use science and technology results already declared in the dossier of application for certification as science and technology enterprise;

b/ The enterprise has falsified the dossier of application for certification as science and technology enterprise.

Enterprises whose science and technology enterprise certificates are invalidated shall return all funds and other benefits which they have received and be handled in accordance with law.

3. Competent agencies shall, after revoking or invalidating science and technology enterprise certificates, send written notices to agencies involved in the implementation of policies on incentives and supports for science and technology enterprises and publicize the revocation and invalidation of science and technology enterprise certificates on their websites for at least 30 working days after the issuance of decisions on revocation or invalidation of science and technology enterprise certificates.

Article 11.Funds for the appraisal of dossiers for grant, modification, re-grant, revocation and invalidation of science and technology enterprise certificates

1. The state budget shall allocate funds for the appraisal of dossiers for grant, modification, re-grant, revocation and invalidation of science and technology enterprise certificates.

2. Contents and levels of spending items must comply with the current regulations on acceptance test of ministerial- and provincial-level science and technology tasks.

Chapter III

INCENTIVE AND SUPPORT POLICIES

Article 12.Enterprise income tax exemption or reduction

1. Science and technology enterprises’ income from the production of and trading in products formed from science and technology results are entitled to enterprise income tax exemption for 4 years and a 50 percent-reduction of payable enterprise income tax amounts for the subsequent 9 years for new investment projects in scientific research and technological development.

2. Turnover and income from the production of and trading in products formed from science and technology results are prescribed in Clause 1, Article 2 of this Decree. Turnover and income from services provided with the application of science and technology results in the field of information technology must be turnover and income from new services.

3. Science and technology enterprises are not entitled to enterprise income tax exemption or reduction for the fiscal year when they fail to meet the condition that turnover from products formed from science and technology results must account for at least 30% of the total turnover.

4. Conditions and procedures for implementation of enterprise income tax incentives must comply with the laws on enterprise income tax and tax administration.

Article 13.Land and water surface rental exemption or reduction

1. Science and technology enterprises are entitled to land and water surface rental exemption or reduction in accordance with the land law.

2. Provincial-level Science and Technology Department shall coordinate with agencies receiving land users’ dossiers prescribed in Article 60 of the Government’s Decree No. 43/2014/ND-CP of May 15, 2014, when determining the land area eligible for land rental exemption or reduction for scientific and technological purposes. The procedures and dossier of application for land and water surface rental exemption or reduction must comply with the regulations on land rental and tax administration.

Article 14.Credit incentives for science and technology enterprises conducting scientific research, technological development and production and business activities

1. Investment projects to turn out products from science and technology results of science and technology enterprises are entitled investment credit loans of the State under the current regulations.

2. Science and technology enterprises performing science and technology tasks, applying science and technology results, or producing or trading in products formed from science and technology results are entitled to soft loans and interest-rate support and loan guarantee from the National Technology Renewal Fund and science and technology development funds of ministries, ministerial-level agencies, provinces and centrally run cities.

a/ For science and technology enterprises which have assets for use as collaterals in accordance with law, the National Technology Renewal Fund and science and technology development funds of ministries, ministerial-level agencies, provinces and centrally run cities shall provide them with soft loans or interest-rate support equaling up to 50% of the loan interest rates offered by lending commercial banks.

b/ For science and technology enterprises which have feasible science and technology projects, the National Technology Renewal Fund and science and technology development funds of ministries, ministerial-level agencies, provinces and centrally run cities shall provide them with soft loans or guarantee for loans borrowed from commercial banks.

3. The National Technology Renewal Fund and science and technology development funds of ministries, ministerial-level agencies, provinces and centrally run cities shall formulate regulations on lending, provision of interest-rate support and loan guarantee, ensuring convenient access for science and technology enterprises.

4. In case science and technology enterprises meet the criteria for provision of support set by the Guarantee Fund for Small- and Medium-Sized Enterprises, the Fund shall consider and grant credit guarantee for them to borrow loans from lending institutions in accordance with law.

Article 15.Assignment of assets being science and technology results of the performance of science and technology tasks using state capital

The assignment of assets being science and technology results of the performance of science and technology tasks using state capital to science and technology enterprises must comply with the Government’s regulations on management and use of assets formed from the performance of science and technology tasks using state capital.

Article 16.Support for research and commercialization of science and technology results

1. Science and technology enterprises are entitled to import duty and export duty incentives for scientific research, technological development and production and business activities in accordance with the law on import duty and export duty.

2. Science and technology enterprises are given with priority and exempt from service charges when using machinery and equipment at national key laboratories, technology incubation and enterprise incubation facilities and scientific and technological research institutions of the State for scientific research and technological development, technology incubation, trial production of new products, and science and technology enterprise incubation. In case of incurring expenses for purchasing materials and supplies to serve research activities, enterprises shall pay these expenses to national key laboratories, technology incubation and enterprise incubation facilities and scientific and technological research institutions of the State.

3. Science and technology enterprises may use their science and technology development funds and other lawfully mobilized funds to commercialize science and technology results.

Science and technology enterprises are given with priority for participating in the State’s projects on support for commercialization of science and technology results and intellectual assets. Support contents and levels must comply with the State’s regulations on projects on support for commercialization of science and technology results.

4. Science and technology enterprises are entitled to registration fee exemption when registering land use rights and house ownership right in accordance with the law on registration fee.

5. Ministries and ministerial-level agencies shall prioritize the formulation of national technical regulations on products formed from science and technology results of science and technology enterprises for products on the list of group-2 products for which relevant technical regulations have not yet been formulated.

Article 17.Supports and incentives for technology application and renewal

1. Science and technology enterprises that invest in physical and technical foundations for technology decoding activities shall be entitled to capital support, loan guarantee and interest rate support equaling up to 50% of loan interest rates offered by lending commercial banks.

2. Science and technology enterprises whose projects participate in industrial clusters or value chains are entitled to loans from the Small- and Medium-Sized Enterprise Development Fund in accordance with the current regulations.

3. Science and technology enterprises that use their own funds to invest in scientific research and technological development activities, results of which, after being transferred and effectively applied in reality, are recognized by state management agencies in charge of science and technology, are entitled to support from the state budget. In case such results have important significance to the socio-economic development or national defense and security, the State shall consider purchasing them.

4. Science and technology enterprises shall be given with priority by competent agencies in the establishment of intellectual property rights and circulation registration of products formed from science and technology results to serve the development of new products.

5. Science and technology enterprises that record achievements in science and technology activities and commercialization of products formed from science and technology results shall be honored and commended.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 18.Responsibilities of science and technology enterprises

1. Enterprises shall be held responsible before law for the lawfulness of the ownership and use of science and technology results to create products as well as the production of and trading in such products.

2. Annually, enterprises shall promptly, adequately and accurately provide information and documents on production of and trading in products formed from science and technology results to provincial-level Science and Technology Departments.

Article 19.Responsibilities of the Ministry of Science and Technology

1. To assume the prime responsibility for, and coordinate with related agencies in, guiding and organizing the implementation of this Decree.

2. To assume the prime responsibility for, and coordinate with related agencies in, carrying out the propagation and dissemination of policies on development of science and technology enterprises, programs and schemes on support for development of science and technology enterprises; to honor and commend science and technology enterprises under regulations.

3. To organize the inspection, examination and supervision of, and handling of violations in, the grant of science and technology enterprise certificates and operation of science and technology enterprises under their management in accordance with law; to decide on the recovery of the State’s capital and assets assigned to science and technology enterprises which fail to produce or trade in products already mentioned in dossiers of registration for certification as science and technology enterprise, operate ineffectively or commit violations.

4. To be held responsible before the Government and the Prime Minister for urging and inspecting the Government; to act as the focal point in addressing problems arising in the course of implementation of this Decree and reporting to the Prime Minister in addressing issues falling beyond its competence; annually to organize evaluation and draw experience from the implementation of this Decree.

The National Agency for Technology Entrepreneurship and Commercialization Development under the Ministry of Science and Technology shall assist the Minister of Science and Technology in performing the state management of science and technology enterprise development support.

Article 20.Responsibilities of the Ministry of Finance

1. To direct and guide local tax and finance agencies in providing incentives for science and technology enterprises under Chapter III of this Decree.

2. To recommend and propose to competent agencies solutions to removing difficulties arising in the course of implementation of policies on incentives and support for science and technology enterprises.

Article 21.Responsibilities of ministries and sectors

1. Ministries and ministerial-level agencies shall prioritize the formulation of national technical regulations meeting requirements for development of science and technology enterprises.

2. To direct the Small- and Medium-Sized Enterprise Development Fund and science and technology development funds of ministries and sectors to support science and technology enterprises under Articles 14, 16 and 17 of this Decree.

Article 22.Responsibilities of the Vietnam Development Bank

1. To implement policies on investment credit for science and technology enterprises in accordance with law.

2. To propose competent agencies to address problems and remove difficulties arising the course of implementing credit incentive policies for science and technology enterprises.

Article 23.Responsibilities of provincial-level People’s Committees

1. To promulgate programs and plans on development of science and technology enterprises for each period and arrange funds for implementation.

2. To direct provincial-level Science and Technology Departments in publicizing on their websites information on the order and procedures of, and forms used in, registration for certification as science and technology enterprise; annually report in writing on registration for certification as science and technology enterprise and production and business results of science and technology enterprises in their localities to the National Agency for Technology Entrepreneurship and Commercialization Development before December 15.

3. To direct related ministries and sectors and science and technology development funds of provinces and centrally run cities (if any) to implement the policies on incentives and supports for science and technology enterprises and enterprises implementing new investment projects on scientific research and technological development prescribed in this Decree.

4. To prioritize the lease of land and infrastructure with the lowest rental rate under regulations; arrange land areas for science and technology enterprises in their provinces and centrally run cities when formulating local land use plans and master plans.

Chapter V

IMPLEMENTATION PROVISIONS

Article 24.Transitional provisions

1. Enterprises that are granted science and technology enterprise certificates which are in the period of enjoying incentives and support, including enterprises that have been granted certificates but not yet enjoyed incentives under legal documents effective before the effective date of this Decree, may continue enjoying these incentives and supports for the remaining period under these documents. In case enterprises meet the conditions prescribed in Chapter III of this Decree, they may opt to enjoy the current incentives or the incentives provided in this Decree for the remaining period.

2. The remaining period for enjoying incentives shall be counted from the time of commencing the application of incentives for science and technology enterprises under the legal documents promulgated before the effective date of this Decree.

Article 25.Effect

1. This Decree takes effect on March 20, 2019.

2. The Government’s Decree No. 80/2007/ND-CP of May 19, 2007, on science and technology enterprises; Decree No. 96/2010/ND-CP of September 20, 2010, amending and supplementing a number of articles of the Government’s Decree No. 115/2005/ND-CP of September 5, 2005, providing the mechanism of autonomy and accountability applicable to public science and technology organizations and the Government’s Decree No. 80/2007/ND-CP of May 19, 2007, on science and technology enterprises; and Article 20 of the Government’s Decree No. 95/2014/ND-CP of October 17, 2014, on investment in and the financial mechanism applicable to science and technology activities, cease to be effective since the effective date of this Decree.

Article 26.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, provincial-level People’s Committee chairpersons and heads of related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC