Activities related to scientific research and technological development, or collectively known as innovative activities, always exist in the activities of enterprises. In addition, it is also regularly deployed within enterprises to create internal resources to help businesses survive and develop. For the purpose of encouraging this activity, our state has issued many policies to help support and promote this activity. One of the above-mentioned preferential policies is the issuance of certificates of establishment of science and technology companies in Vietnam.

1. Science and technology definition

First, to better understand before establishing a science and technology company, let's clarify the definition of science and technology: 

  • First of all, there will be inventions, industrial designs, and utility solutions. In particular, there must be integrated circuit designs and semiconductor equipment protected under intellectual property or other international treaties that Vietnam has signed. These computer programs will all require us to provide copyright certificates. 

  • Following that, the Ministry of Agriculture and Rural Development of Vietnam has approved new plant varieties, livestock, and aquatic products for the agricultural sector. 
  • In addition, projects that have won awards in science and technology will be managed by competent authorities. 
  • Of course, the results will be recognized and certified by the competent authorities. 
  • Not only that, it is also possible to transfer technologies certified by competent authorities.

2. The advantages of establishing a science and technology company

Thus, through the above definition, you can better understand science and technology. Next, we will consider the advantages of setting up a science and technology company in Vietnam:

Investment Credit Offers 

  • This must be one of the extremely practical advantages of establishing a science and technology company in Vietnam. because the company's investments in scientific research projects will enjoy state investment credit. It is certain that science and technology companies with mortgages will be able to borrow with preferential regimes from commercial banks with a maximum reduction of up to 50% of their interest rates. 
  • In addition, projects funded by the National Technological Innovation Fund, together with the Science and Technology Development Fund, will receive loans from commercial banks and also have loan guarantees or interest rates at zero. same offer. 
  • In particular, for businesses with potential and practical science and technology projects, they will also receive very preferential loans.

Exemption/Discount of land rental and water surface rental

  • For newly established businesses, the issue of renting space will make it difficult for business owners to make decisions. It must be based on many factors for business owners to decide which to choose, such as: cost of renting space, convenient location,... However, for science and technology enterprises, the pressure is on. This problem is partly mitigated by enjoying the incentives for exemption and reduction of water surface rents according to the preferential policies of the Vietnamese government. According to Decree 13/2019 ND-CP on science and technology enterprises, this decision will be made by the Department of Science and Technology of Vietnam, so you can completely trust the accuracy of the information above.

Discount/Exemption from Corporate Income Tax

  • For science and technology companies, there may be a corporate tax exemption or reduction on the revenue they generate from the sale of their products or the development of their own research projects. This is one of the attractive incentives in the state's policy towards science and technology enterprises. 
  • The above companies will be exempted from corporate income tax for 4 years, followed by a 50% reduction in corporate income tax for the next 9 years. However, enterprises are only eligible when their science and technology projects reach 30% of total revenue or more. And if you are a foreign business and still do not fully understand the tax provisions of Vietnamese law, we are always ready with a tax reporting service to help you do that.

You can rest assured that with the information we provide, with the knowledge and experience that has supported many foreign businesses to succeed in setting up a company in Vietnam, we are confident we can bring you the best experience. Please contact YNN Global immediately via hotline 0909 594 196 for more detailed information and the fastest support.

Related: The Benefits and Drawbacks of Business Registration in Vietnam

 

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