CIT incentives for software production activitiesVietnam offers significant CIT incentives to encourage the growth of the software industry. These incentives are designed to support software companies by reducing their tax burden and enhancing their competitiveness.Eligibility criteriaTo qualify for CIT incentives, software companies must meet specific criteria defined by Vietnamese law. Key eligibility requirements include:Compliance with legal framework: Companies must adhere to the definitions and requirements set forth in Circular 13/2020/TT-BTTTT, which outlines the activities that qualify as software production must perform at least one of two stages (namely, “Requirement Determination” and “Analysis and Design”). Please refer to “Software production stages” for more information.Additionally, businesses should ensure that their products are listed in Circular 09/2013/TT-BTTTT (amended by Circular 20/2021/TT-BTTTT), which specifies eligible software, hardware, and electronic products.Investment in new projects: CIT incentives apply to companies undertaking new investment projects in software production. The incentives are specifically designed for enterprises that are newly establishing software production activities or expanding their existing operations.Documentation: Companies must maintain thorough documentation of their software production processes. This documentation is crucial for demonstrating compliance with the required processes and for claiming CIT incentives.CIT incentives for high-tech companiesCertificate of High-Tech EnterprisesThe Certificate of High-Tech Enterprise, issued by Vietnam’s Ministry of Science and Technology, is a key credential for businesses seeking significant tax and financial incentives in Vietnam. This certification recognizes companies that are engaged in high-tech and innovative activities, including those involved in mobile phones, electronics, and software development. The certification is essential for qualifying for the government’s extensive support programs aimed at fostering technological advancement and R&D activities.The application procedures include:Preparing application documents: Submit an application form, notarized copies of relevant business certificates, explanations of compliance with high-tech criteria, and supporting documents such as financial statements, R&D activity reports, and workforce records.Submitting application: Apply in person, by post, or through the National Public Service Portal.Review and appraisal: The Ministry of Science and Technology reviews the application, seeks opinions from relevant authorities, and may request additional information if necessary.Issuance of certificate: The Ministry issues the certificate within 30 days of receiving a complete application. If denied, a written explanation is provided.This certification not only facilitates access to tax and financial incentives but also positions companies as leaders in Vietnam’s high-tech sector.Incentives for high-tech companiesHigh-tech companies holding the High-Tech Enterprise Certificate can access a range of incentives under Decree No. 13/2019/ND-CP (Decree 13).Among other, these include up to four years of tax exemptions and a 50 percent reduction in corporate income tax for the subsequent nine years.Additionally, other incentives include:Land rental exemptions and reductions: Financial relief from land rental costs.Preferential credit terms: Access to favorable credit conditions and financial support from national science and technology development funds.Support for R&D: Financial aid for R&D activities, including incentives for import-export duties and free use of equipment at national laboratories.ConclusionCompanies seeking to leverage Vietnam’s CIT incentives should carefully navigate the complex regulatory environment. It’s essential to ensure compliance with specific criteria and maintain thorough documentation to qualify for benefits.Consulting with tax professionals and staying informed about regulatory updates can help businesses maximize their advantages and align their strategies with Vietnam’s evolving investment landscape.For more information: https://www.vietnam-briefing.com/news/cit-incentives-for-software-production-and-high-tech-companies-in-vietnam.html/?utm_source=brevo&utm_campaign=VBWeekly&utm_medium=email (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam Briefing