Description

According to the former Minister of the Ministry of Science and Technology (MOST) Nguyễn Quân, the limitations in legal regulations on science and technology investment have hindered the development of science and technology.

He stated the limitations of the newly issued Circular 03/2021/TT-BTC on Corporate Income Tax (CIT) exemption and reduction policies for science-technology enterprises, which may lead to difficulties to be applied practically. More specifically, this Circular has no specific information on CIT rates which makes investing in science and technology less attractive and the science-technology companies have less advantage compared to hi-tech companies, companies investing in hi-tech zones, or companies that have hi-tech projects. Additionally, Circular 03 refers to preferential tax policies which are different aspects compared to previous regulations, e.g., on human resources, transfer of assets, and sharing of profits. Therefore, it will be difficult for those who want to found or change to a science-technology company. Furthermore, complicated application procedures make the enterprises choose the normal tax rates rather than tax incentives. He also analyzed the incentives mentioned in Law on Science and Technology, which are absent from Law on Personal Income Tax, Law on Public Employee, and Law on State Budget.

He thus asked for consistency among those laws and especially regulations and specific guidance on venture capital from Law on State Budget and Law on Support for Small- and Medium-sized Enterprises, respectively.

Source and further information: “Consistency in legal documents needed to develop science and technology: expert” at https://vietnamnews.vn, accessed on 9 Mar 2021