Circular No. 05/2022/TT-BKHCN guiding the use of the Science and Technology Development Fund of enterprises

CIRCULAR

Hsafe school use Science and Technology Development Fund

of enterprises

__________________

Pursuant to the Law on Science and Technology and CPursuant to Decree No. 08/2014/NĐ-CP dated January 27, 2014 of the Government detailing and guiding the implementation of certain provisions of the Law on

Pursuant to the Law on Technology Transfer dated June 19, 2017;

Pursuant to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Economic and Social Recovery Program;

Pursuant to Decree No. 95/2017/NĐ-CP dated August 16, 2017, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Science and Technology;

căn cứ Nghị địnhnumber Decree No. 95/2014/NĐ-CP dated October 17, 2014 of the Government stipulating investment and financial mechanisms for scientific and technological activities;

Pursuant to Decree No. 76/2018/NĐ-CP dated May 15, 2018 of the Government detailing and guiding the implementation of certain provisions of the Law on Technology Transfer;

Pursuant to Decree No. 13/2019/NĐ-CP dated February 1, 2019 of the Government on science and technology enterprises;

At the proposal of the Director of the Department of Planning and Finance and the Director of the Legal Department;

The Minister ofAND Science and Technology issues this Circular guiding use the Science and Technology Development Fund of enterprises.

Article 1. Scope of Regulation and Applicability

Article 1. This Circular guides the use of the Science and Technology Development Fund of enterprises (hereinafter referred to as the Fund).

Article 2. This Circular applies to enterprises established in accordance with the law (hereinafter referred to as enterprises), relevant state agencies, organizations, and individuals.

Article 3. Rights and responsibilities of enterprises

Clause 1. Enterprises have the right to manage and use the fund independently and responsibly in accordance with the purpose as prescribed in Clause 3, Article 63 of the Law on Science and Technology.

Clause 2. Notify the establishment of the Fund to the specialized agency on science and technology under the People's Committee of the province or centrally governed city where the enterprise registers tax within thirty days from the date of establishing the Fund.

Clause 3. Establish, approve, and submit the Regulation on proposing tasks, organizing implementation, and evaluating acceptance of scientific and technological tasks of the enterprise (hereinafter referred to as the Scientific and Technological Regulation of the enterprise) and the Regulation on expenditure and use of the Fund to the direct managing tax authority together with the report on the first period of extraction and use of the Fund in accordance with Clause 2, Article 10 of Decree No. 95/2014/NĐ-CP dated October 17, 2014 of the Government stipulating investment and financial mechanisms for scientific and technological activities (hereinafter referred to as Decree No. 95/2014/NĐ-CP).

Clause 4. Report on the establishment, transfer, and use of the Fund to the relevant agencies as prescribed in Clause 1 and Clause 4, Article 11 of Decree No. 95/2014/NĐ-CP.

Clause 5. Cooperate with state management agencies in inspecting and supervising the management and use of the Fund in accordance with the law.

Article 4. Expenditure for implementing scientific and technological tasks

Clause 1. Implement national, ministerial, and provincial-level scientific and technological tasks.

The Fund allocates corresponding capital according to the progress of implementing national, ministerial, and provincial-level scientific and technological tasks led or jointly implemented by the enterprise based on research contracts and approved task descriptions in accordance with the law on science and technology.

Clause 2. Implement scientific and technological tasks of the enterprise.

Point a. Based on the Scientific and Technological Regulation of the enterprise, the enterprise's scientific and technological tasks are carried out through selection, direct assignment, or other methods as prescribed in Clause 2, Article 28 of the Law on Science and Technology;

Point b. Regulations on budget expenditures for the enterprise's scientific and technological tasks, the method of cost allocation (to the final product or partial allocation) for scientific and technological tasks are stipulated in the Scientific and Technological Regulation of the enterprise and the Regulation on expenditure and use of the Fund. The enterprise may apply the provisions of Joint Circular No. 27/2015/TTLT-BKHCN-BTC dated December 30, 2015 of the Ministers of Science and Technology and Finance on cost allocation for implementing scientific and technological tasks using state budget funds and related replacement, amendment, and supplementation documents;

Point c. Funds for implementing scientific and technological tasks are expended for contents as approved in the budget expenditure plan and as prescribed in the Scientific and Technological Regulation and the Regulation on expenditure and use of the Fund of the enterprise;

Point d. The assessment of results of implementing scientific and technological tasks not using state budget funds that potentially affect national interests, national defense, security, environment, human life, and health before application in production and daily life shall be conducted in accordance with Circular No. 02/2015/TT-BKHCN dated March 6, 2015 of the Minister of Science and Technology on the evaluation and assessment of results of implementing scientific and technological tasks not using state budget funds.

Clause 3. Expenditure for implementing scientific and technological tasks in cases where the tasks are suspended due to objective reasons as stipulated in the Scientific and Technological Regulation of the enterprise.

Article 4. Support for the development of science and technology by enterprises

1. Equipping material and technical infrastructure for the scientific and technological activities of enterprises: Establishing research and development organizations, analytical centers, testing, trial, certification, calibration, product testing centers; enterprise information infrastructure and databases on scientific and technological activities; expenses for maintenance, repair, and servicing of material and technical infrastructure and equipment for scientific and technological activities; other expenses for the development of science and technology; quality management systems of enterprises as prescribed in point a, Clause 3, Article 10 of Decree No. 95/2014/ND-CP.

The equipping of material and technical infrastructure for the scientific and technological activities of enterprises shall be carried out in accordance with laws on investment; construction laws; laws on state capital management and use for production and business at enterprises, and other relevant laws.

2. Purchasing rights to use and ownership: Trade secrets; technical knowledge transferred in the form of technological schemes, technological processes, technical designs, engineering solutions, formulas, technical parameters, drawings, technical diagrams, computer programs, data information; rationalization solutions, technological innovation; patents; industrial designs; inventions; research results, products related both domestically and internationally to serve the scientific and technological activities of enterprises as prescribed in point b, Clause 3, Article 10 of Decree No. 95/2014/ND-CP.

The purchase of rights to use and ownership of technologies listed in the Restricted Technology Transfer Catalogue as prescribed in point b, Clause 1, Article 3 of Decree No. 76/2018/ND-CP dated May 15, 2018 of the Government detailing and guiding the implementation of certain provisions of the Law on Technology Transfer (hereinafter referred to as Decree No. 76/2018/ND-CP) may only be implemented after the competent state agency issues a technology transfer permit in accordance with Articles 28, 29, and 30 of the Law on Technology Transfer.

The determination of price and payment methods when purchasing rights to use and ownership related to technology transfer shall be carried out in accordance with Article 4 of Decree No. 76/2018/ND-CP.

Direct costs incurred during the process of purchasing rights to use and ownership of the objects specified herein shall be included in the value of the rights to use and ownership of those objects.

3. Purchasing machinery and equipment for technological innovation directly serving production and business activities to replace part or all of the existing technology with more advanced technology in order to improve product productivity and quality or develop new products of the enterprise.

Purchasing raw materials shall be carried out in accordance with point b, Clause 3, Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the economic recovery and development program.

The purchase of machinery and equipment as stipulated herein shall be carried out in accordance with laws on investment; laws on state capital management and use for production and business at enterprises, and other relevant laws.

4. Paying salaries, hiring experts or contracting with domestic and foreign scientific and technological organizations to carry out the scientific and technological activities of enterprises as prescribed in point d, Clause 3, Article 10 of Decree No. 95/2014/ND-CP.

5. Expenses for training scientific and technological human resources of enterprises

a) Training activities for scientific and technological human resources of enterprises shall be conducted according to the training contents and forms prescribed in point đ, Clause 3, Article 10 of Decree No. 95/2014/ND-CP as follows:

- Training by research groups;

- Training specialists in various fields of science and technology;

- Postgraduate studies;

- Training and upgrading professional skills, knowledge, and management skills in science and technology, productivity and quality, and business management.

b) Training and upgrading shall be conducted through short-term and long-term forms within and outside the country; internships and work at research institutions, scientific and technological organizations, enterprises, and groups both domestically and internationally; participation in implementing scientific and technological tasks.

c) Based on the approved strategic and development plans of the enterprise, the enterprise is responsible for building and approving annual training plans for scientific and technological human resources and budgets for such activities.

6. Expenses for initiative activities

a) Initiative activities shall be carried out in accordance with the Regulations on Initiatives issued together with Decree No. 13/2012/ND-CP dated March 2, 2012 of the Government and relevant laws;

b) Expenses for initiative activities shall be carried out in accordance with Circular No. 03/2019/TT-BTC dated January 15, 2019 of the Minister of Finance on sources of funding, contents, and expenditure levels from the state budget to implement initiative activities.

7. Expenses for cooperation in scientific and technological activities with domestic and foreign organizations, individuals, and enterprises: Survey and search for partners and technology needs both domestically and internationally; expenses for joint research tasks in fields of science and technology encouraged and prioritized by the state as prescribed in point g, Clause 3, Article 10 of Decree No. 95/2014/ND-CP.

8. Expenses for evaluation, testing, inspection, certification, promotion, and commercialization of new products and technologies; registration of intellectual property rights as prescribed in point h, Clause 3, Article 10 of Decree No. 95/2014/ND-CP shall be carried out in accordance with relevant laws.

9. Funding for implementing tasks under the Project "Supporting the National Innovation Startup Ecosystem until 2025" in accordance with Circular No. 45/2019/TT-BTC dated July 19, 2019, issued by the Minister of Finance, which stipulates financial management for implementing the Project "Supporting the National Innovation Startup Ecosystem until 2025."

Article 5. Expenditure for technology transfer activities

1. Expenditure for projects in industries and sectors eligible for investment incentives, located in areas eligible for investment incentives, receiving technology transfers from scientific and technological organizations in accordance with Articles 8 and 9 of Decree No. 76/2018/NĐ-CP.

2. Investment expenditure, counter-investment capital for innovation startups; technological innovation, nurturing technology, nurturing science and technology enterprises, commercializing research results and development technologies; decoding technology, investing in technical infrastructure for decoding technology activities, and hiring domestic and foreign organizations and individuals to provide consulting and manage the investment activities of the enterprise's science and technology development fund according to the provisions of Article 10 of Decree No. 76/2018/NĐ-CP and Clause 3 of Article 16 of Decree No. 13/2019/NĐ-CP dated February 1, 2019, of the Government on science and technology enterprises.

3. Expenditure for purchasing and importing material samples (products, technology, designs, equipment, systems requiring decoding) serving decoding technology activities; hiring experts to provide consulting, search, technical support, and technical labor services for decoding technology activities through scientific and technological tasks in accordance with Article 13 of Decree No. 76/2018/NĐ-CP.

4. Supporting scientific and technological organizations of enterprises that have collaborative activities with local application and technology transfer organizations to complete research and development results suitable for local characteristics in accordance with Article 14 of Decree No. 76/2018/NĐ-CP.

5. Training and capacity building to enhance the ability to absorb and master technology in accordance with Article 28 of Decree No. 76/2018/NĐ-CP.

Article 6. Expenditure for managing the Fund

1. Enterprises may use the Fund’s capital for the following contents directly serving the management of the Fund:

a) Salary and social insurance contributions, unemployment insurance, health insurance, and other contributions for staff directly serving the management of the Fund in accordance with regulations;

b) Allowances for part-time staff in accordance with regulations;

c) Rent for office space (if applicable);

d) Purchase and repair of office supplies and assets;

đ) Payment for public services;

e) Travel expenses;

g) Other expenditures related to the management of the Fund.

2. The level of expenditure for managing the Fund and the ratio of expenditure for managing the Fund to the total expenditure of the Fund shall be determined by the enterprise to ensure economy, efficiency, and compliance with regulations.

Article 7. Requirements for Support from the National Science and Technology Development Fund; Science and Technology Development Funds of Ministries; Science and Technology Development Funds of provinces and centrally-administered cities where enterprises register for tax payment (hereinafter referred to as the National Science and Technology Development Fund, Ministry-level Fund, Local Fund)

1. State-owned enterprises that have established a Fund in accordance with tax laws, if the Fund is not used or is not fully utilized at 70% within five years from the year of establishment or receipt of transfer (if any), must remit a portion of the unused or underutilized Fund to the National Science and Technology Development Fund, Ministry-level Fund, Local Fund. The amount to be remitted to the National Science and Technology Development Fund, Ministry-level Fund, Local Fund shall be at least 20% of the unused or underutilized Fund.

The amount of the Fund established and the amount of the Fund used are regulated by tax laws.

Other enterprises have the right to contribute to the Science and Technology Development Funds of provinces and centrally-administered cities where they register for tax payment.

2. Enterprises that have contributed to the National Science and Technology Development Fund, Ministry-level Fund, Local Fund in accordance with point a, Clause 5, Article 11 of Decree No. 95/2014/NĐ-CP when having scientific and technological tasks requiring funding can request support from the Science and Technology Development Funds.

3. The National Science and Technology Development Fund, Ministry-level Fund, Local Fund that has received transfers shall be responsible for supporting the transferred funds and prioritizing additional support within the capacity of the fund. Additional support shall be carried out in accordance with the regulations of the National Science and Technology Development Fund, Ministry-level Fund, Local Fund.

4. The procedure and formalities for enterprises to request support from the National Science and Technology Development Fund, Ministry-level Fund, Local Fund are as follows:

a) Procedure:

- Enterprises that have contributed to the National Science and Technology Development Fund, Ministry-level Fund, Local Fund in accordance with Clause 1 of this Article shall prepare and submit the dossier to the National Science and Technology Development Fund, Ministry-level Fund, Local Fund;

- Within five working days from the date of receiving the dossier, the National Science and Technology Development Fund, Ministry-level Fund, Local Fund shall check the completeness and validity of the dossier and notify in writing any required modifications or supplements (if necessary);

- Within thirty-five working days from the date of receiving a complete and valid dossier, the National Science and Technology Development Fund, Ministry-level Fund, Local Fund shall consider and provide support to the enterprise in accordance with Clause 3 of this Article. In case of disagreement with the support, the National Science and Technology Development Fund, Ministry-level Fund, Local Fund must respond in writing and specify the reasons.

b) Method:

Submitting directly at the headquarters of the National Science and Technology Development Fund, Ministry-level Fund, Local Fund; implementing through online public service in accordance with the law or sending via postal service.

c) Dossier components and quantity:

- Dossier components: A letter requesting the National Science and Technology Development Fund, Ministry-level Fund, Local Fund to support the funds already contributed; Detailed explanation and budget of the funds for implementing scientific and technological tasks;

- Number of dossiers: One set.

Article 8. Effectiveness and Implementation

1. This Circular takes effect from June 1, 2022, and applies to the use of the Science and Technology Fund at enterprises for the 2022 corporate income tax period.

2. Articles 2, 3, 5, 6, 7, 8, 9, 10, 11, 15 and Model No. 01 of the Appendix issued together with Joint Circular No. 12/2016/TTLT-BKHCN-BTC dated June 28, 2016, of the Minister of Science and Technology and the Minister of Finance guiding the content of expenditure and management of the Enterprise Science and Technology Development Fund shall cease to be effective from the date this Circular takes effect.

3. The guidance on taxation, financial management, and asset management formed from the Fund shall be implemented in accordance with the regulations of the Ministry of Finance.

4. In cases where legal normative documents cited in this Circular are amended, supplemented, or replaced by new legal normative documents, they shall be applied according to the new documents./.