Thông tư 214/2015/TT-BTC

CIRCULAR

INSTRUCTIONS ON INCENTIVE MECHANISMS AND POLICIES ON STATE SUBSIDIES, TAXES AND DEVELOPMENT INVESTMENT CREDITS AS PRESCRIBED IN THE PRIME MINISTER’S DECISION No. 1193/QD-TTG DATED JULY 30, 2015 ON PILOTING A NUMBER OF SPECIFIC MECHANISMS AND POLICIES ON DEVELOPMENT OF VIETNAM-KOREA TECHNOLOGY INCUBATION IN CAN THO CITY

Pursuant to the Law on Export and import tax No. 45/2005/QH11 and instructions of the Law on Export and import tax;

Pursuant to the Law on Value-added tax No. 13/2008/QH12, the law on amendments to a number of articles of the Law on Value-added tax No. 31/2013/QH13 and guiding documents of the Law on Value-added tax;

Pursuant to the Law on Enterprise income tax No. 14/2008/QH12, the Law on amendments to a number of articles of the Law on Enterprise income tax No. 32/2013/QH13 and guiding documents of the Law on Enterprise income tax;

Pursuant to the Law on personal income tax No. 04/2007/QH12, the law on amendments to a number of articles of the Law on personal income tax No. 26/2012/QH13 and guiding documents of the Law on personal income tax;

Pursuant to the Law on Land No. 45/2013/QH13 and guiding documents of the Law on Land;

Pursuant to the Law on Investment No. 67/2014/QH13 and guiding documents of the Law on Investment;

Pursuant to the Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Decision No. 1193/QD-TTg dated July 30, 2015 on piloting a number of mechanisms and policies for development of Vietnam Korea technology incubation in Can Tho City;

At the request of the Director of the Tax Policy Department,

The Minister of Finance promulgates the Circular providing instructions on incentive mechanisms and policies on state subsidies, taxes and development investment credits as prescribed in the Prime Minister’s Decision no. 1193/QD-TTG dated July 30, 2015 on piloting a number of specific mechanisms and policies on development of Vietnam-Korea technology incubation in Can Tho City.

Article 1. Governing scope

This Circular provides instructions on incentive mechanisms and policies on state subsidies, taxes and development investment credits as prescribed in the Prime Minister’s Decision no. 1193/QD-TTG dated July 30, 2015 on piloting a number of specific mechanisms and policies on development of Vietnam-Korea technology incubation in Can Tho City.

Article 2. Regulated entities

1. Vietnam Korea technology incubation in Can Tho (herein ‘the park’), enterprises, cooperatives, cooperative associations, scientific and technological organizations established under laws of Vietnam and relevant individuals participating in technological incubation at the park.

2. Investment projects applying technology successfully incubated in the park (herein ‘the investment project’);

3. Relevant agencies, organizations participating in management of the park’s activities;

4. The park, enterprises performing incubation in the park and the investment project as prescribed in Clauses 1, 2, 3, Article 3 of the Decision No. 1193/QD-TTg;

Article 3. Mechanisms on state subsidies

State subsidies to the construction and completion of technical infrastructure of the park are instructed in Clause 1, Article 4 of the Decision No. 1193/QD-TTg and decisions made by competent state agencies.

Article 4. Management and use of land for the park

1. The park is eligible for lease of the land granted by the state to invest, construct and trade in nfrastructure. For the area for which rents are paid annually, the park has the right to sublet the area for annually paid rents; for the area for which rents are paid once for the entire lease period, the park has the right to sublet the area for rent which is paid once for the entire lease period or annually. The park shall be eligible for exemption, reduction in land rents as prescribed in the Government’s Decree No. 46/2014/ND-CP dated May 15, 2014 and the Minister of Finance’s Circular applying to industrial parks.

2. Enterprises performing technology incubation in the park, enterprises as owners of the investment project eligible for the sublease of the land linked to the park’s infrastructure should make proper use of the land as prescribed and shall be granted land use right certificate, ownership of houses and land-linked properties as prescribed in Articles 174, 175 of the Law on Land in 2013.

Article 5. Credit incentives

1. Projects on investment, production, development and application of technology incubated successfully in the park and falling within Annex I (Lists of projects using investment credits enclosed with Decree No. 75/2011/ND-CP dated August 30, 2011 of the Government) shall be eligible for acquiring loans from the Vietnam Development Bank as prescribed.

2. Enterprises as owners of the investment project eligible for loan guarantees as prescribed in Article 3 of the Decision No. 03/2011/QD-TTg dated January 10, 2011 shall be guaranteed by the Vietnam Development Bank to obtain loans at credit institutions operating in Vietnam as prescribed.

Article 6. Tax incentives

1. Import tax

a) To the park

- Commodities in the form of machinery and equipment, spare parts, transport vehicles and technologies that cannot be manufactured and created in the country; materials, books, scientific magazines, electronic scientific and technological news sources imported to directly serve activities of technological incubation in the park shall be eligible for import tax exemption.

- The People’s Committee of Can Tho City shall grant approval for the list of imports serving activities of technological incubation in the park as procedures for import tax exemption as prescribed in this Point.

b) To enterprises performing technological incubation in the park

- Commodities in the form of machinery and equipment, spare parts, transport vehicles and technologies that cannot be manufactured and created in the country; materials, books, scientific magazines, electronic scientific and technological news sources imported to directly serve activities of technological incubation in the park shall be eligible for import tax exemption.

- The park shall be responsible for granting approval for the list of imports serving the enterprise’s activities of technological incubation in the park as procedures for import tax exemption as prescribed in this Point.

c) To the investment project

- Commodities imported as immovable property of the investment project shall be eligible for import tax incentives as prescribed in Clauses 6, 7, 8, Article 12 of the Government's Decree No. 87/2010/ND-CP dated August 13th 2010, detailing the implementation of a number of articles of the Law on Export and import tax (herein ‘Decree No. 87/2010/ND-CP).

- The park shall be responsible for granting approval for the list of imports as procedures for import tax exemption as prescribed in this Point.

- In case of need (for other investment projects outside branches, industries eligible for investment incentives as specified in Annex I enclosed with Decree No. 118/2015/ND-CP dated November 12, 2015), the People’s Committee of Can Tho City shall make a report to the Prime Minister for considerations and decisions on import tax exemption for commodities imported as immovable property of the investment project in the park as prescribed for investment projects in industrial parks as prescribed in Clause 20, Article 12 of Decree No. 87/2010/ND-CP.

d) Procedures and applications for import tax exemption, registration for the lists of imports eligible for tax exemption, reports on use of tax-free goods are instructed in Articles 103, 104, 105 of the Ministry of Finance’s Circular No. 38/2015/TT-BTC dated March 25, 2015.

dd)  In addition to procedures, applications as prescribed in Point d, Clause 1, Article 2 of this Circular, the customs declarant should provide to the customs agency the lists of imports approved by the People’s Committee of Can Tho City; the lists of imports directly serving the enterprise’s activities of technological incubation in the park and the lists of imports as immovable property of the investment project approved by the park (one copy and an original for comparison)

2. Corporate income tax incentives

a) The corporate income from new hi-tech incubation investment projects in the park or from new investment projects applying high technologies that are prioritized for development investment as prescribed in the Law on High Technology and successfully incubated in the park shall be eligible for preferential tax rate as 10% for 15 years, tax exemption for four years and a 50% reduction for the next nine years.

b) The corporate income from topics and new projects on investment in hi-tech incubation in the park or from new investment projects applying technologies successfully incubated in the park shall be instructed in the Law on Corporate Income Tax and guiding documents.

c) The corporate income from expansion projects of the projects as prescribed in Points a, b of this Clause shall be instructed in the Law on Corporate Income Tax and guiding documents.

dd) Tax exemption or reduction period as prescribed in this Clause shall be instructed in the Law on Corporate Income Tax and guiding documents.

dd) Procedures on corporate income tax incentives are instructed in the Minister of Finance’s Circular No. 78/2014/TT-BTC dated June 18, 2014, the Minister of Finance’s Circular No. 96/2015/TT-BTC dated June 22, 2015;

3. Value-added tax (VAT)

Policies on VAT for products created from application of technologies incubated in the park are instructed in the Law on Value-Added Tax, the Law on amendments to a number of articles of the Law on Value-Added Tax and guiding documents.

4. Personal income tax

The income from salaries, wages of scientific and technological research experts directly involved in the park’s technology incubation activities are instruction in the Double Taxation Agreement , the Law on Personal Income Tax, the Law on amendments to a number of articles of the Law on personal income tax and current guiding documents.

5. Land rent incentives

a) Based on the applications for exemption, reduction in land rents submitted by the park, Can Tho City’s Department of Taxation shall determine the exemption and reduction amount and promulgate decisions on such exemption and reduction within authority as prescribed in Point a, Clause 1, Article 21 of Decree No. 46/2014/ND-CP  Applications, sequence and procedures for exemption from land rents for the park are instructed in the Minister of Finance’s Circular No. 77/2014/TT-BTC dated June 16, 2014.

b) Investment projects as prescribed in Clause 3, Article 3 of Decision No. 1193/QD-TTg shall be eligible for exemption from land rents for the first five years since the land lease contract is signed with the park and a 50% reduction for the next five years as prescribed in Clause 2, Article 6 of Decision No. 1193/QD-TTg

- Levels of land rent incentives for the investment projects should be specified in the land sublease contract signed between the park and the enterprise as owner of the investment project and in the investment registration certificate (for investment projects granted such a paper).

- The land sublease contract signed between the park and the enterprise should make separate the land rent charged to the park by the state as foundations for determination of level of exemption, reduction for the enterprise and specify the duration of exemption or reduction as prescribed. The land lease contract should be delivered to Can Tho City’s Department of Taxation.

- Can Tho City’s Department of Taxation shall be responsible for monitoring and inspecting land rent exemption and reduction to enterprises as owners of the investment project.

Article 7. Subsidies on scientific research, technological development and human resource training

1. Enterprises participating in technology incubation in the park shall receive maximum subsidy on consulting activities supporting technology incubation, registration for intellectual property rights for technologies successfully incubated in the park, registration for certification of scientific and technological enterprises;2. Subsidies on human resource training:

a) Short-term training at home: 100% of the expenditures on training for management force and technological research and development group of enterprises participating in technology incubation in the park but no more than 4 million VND/person/year.  Besides, 50% of the expenditures on training for the enterprise’s human forces.

a) Short-term training abroad: 50% of the expenditures on training for technological research and development group of enterprises participating in technology incubation in the park according to applicable regulations

c) Expenses on training are instructed in the Minister of Finance’s Circular No. 139/2010/TT-BTC dated September 21, 2010 and Circular No. 05/2011/TTLT-BKHDT-BTC of the Ministry of Planning and Investment and the Ministry of Finance dated March 31, 2011.

3. Subsidies on scientific research and technological development for enterprises participating in technology incubation in the park are as follows:

a) Working offices in the park free of charge but no more than 60m² and not including electricity, water and communications services;

b) A maximum of 50% of the expenditures on lease of the park’s machinery and equipment

c) 50% of the expenditures on activities of transferring technology, researching, procurement of materials, fuel for the park's laboratory activities. Total subsidy shall not exceed 500 million dong/year for an enterprise performing incubation in the park. Subsidy provided to enterprises performing these activities shall be implemented on the principle of fund assignment to final product as prescribed in Decree No. 95/2012/ND-CP dated October 17, 2014 on investment and financial mechanism applicable to science and technology activities and guiding documents.

Director of the park shall establish an independent consulting council for selection and proposal for technology incubation in the park. Director of the park shall grant approval for contents, expenditures and duration of subsidy according to applicable regulations on use of state budget for science and technology tasks. Duration of subsidy for technology incubation in the park shall not exceed three years since the subsidy is provided or approved.

Enterprises participating in technology incubation in the park shall be given the ownership, the right to use findings from scientific research and industrial development as prescribed in the Minister of Science and Technology’s Circular No. 15/2014/TT-BKHCN dated June 13, 2014.

Article 8. Expenditures on implementation

1. Expenditures on operation of the park’s management apparatus shall be balanced and allocated by the People’s Committee of Can Tho City from local budget;

2. Sources of expenditures on implementation of human resource training are allocated by local budget that is used for training purposes and transfers from central budget for localities (if any).

3. Sources of expenditures on implementation of scientific research and technological development are allocated by local budget that is used for scientific and technological purposes and transfers from central budget for localities (if any); financial sources from national technology innovation funds, national scientific and technological development funds, corporate scientific and technological development funds and other legal sources.

4. Expenditures on incubation activities in the park shall be balanced and allocated by following financial sources:

a) Central and local budgets: expenditures on science and technology, investment and development, economic causes; training cause; ODA and sources for international cooperation, aids and grants from organizations and individuals at home and abroad.

b) Credit loans from the Vietnam Development Bank, commercial banks and credit organizations;

c) Expenditures from organizations, individuals and enterprises: internal finance of organizations, individuals and enterprises and other sources.

d) Expenditures from national technology innovation funds, national scientific and technological development funds; corporate scientific and technological development funds; other funds.

dd) Sources from the park’s income-generating activities include provision of services, land lease and other legal sources;

e) Expenditures mobilized from other legal sources;

5. Every year, the park shall establish the financial plan and make the submission to competent authorities for approval before implementation according to regulations on state budget.

Article 9. Effect

1. This Circular takes effect from February 14, 2016 to December 31, 2020.

2. Any supplement or amendment or replacement made to documents referred to in this Circular shall prevail over previous documents./.