In accordance with the Decree No. 95/2014/ND-CP dated October 17, 2014 of the Government On investment in, and the financial mechanism applicable to, scientific and technological activities. A state enterprise shall annually deduct between 3% and 10% of the income liable to enterprise income tax to set up its science and technology development fund. A non-state enterprise may make deductions for setting up its science and technology development fund at an appropriate level not exceeding 10% of the income liable to enterprise income tax.
Science and technology development funds are set up to invest in promoting scientific and technological potential for enterprises themselves and their production and business sectors, contributing to raising effectiveness and competitiveness; performance of national-, ministerial- and provincial-level scientific and technological tasks; performance of enterprises’ scientific and technological tasks; Investing in technical and physical foundations for scientific and technological activities of enterprises; procuring machinery and equipment accompanied by
objects of technology transfer so as to replace part or the whole of technologies currently in use with more advanced ones in order to improve productivity and product quality or renovate or develop new products; procuring of the right to use or own technological know-how and knowledge transferred in the forms of technological plan, technological process, technical design, technical solution, technical specification, technical drawing or diagram, computer
program, or information data…
In case an enterprise has no need to use or does not use up its science and technology development fund, if being a state-owned enterprise, it shall remit the unused amount to the National Science and Technology Development Fund or the science and technology development fund of its managing ministry, province or centrally run city; if being a non-state enterprise, it may contribute the unused amount to the science and technology development fund of the province or centrally run city where it registers tax payment; in case a non-state enterprise does not make contributions to any state-run science and technology development fund, within 5 years, counting from the year following the year of making deduction for setting up the fund, if the enterprise’s science and technology development fund remains unused, is not used up or is improperly used, the enterprise shall
pay to the state budget an enterprise income tax on the amount deducted for setting up the fund but left unused or improperly used and an interest on such enterprise income tax.
This Decree takes effect on December 01, 2014.
