Circular No. 214/2015/TT-BTC guiding the mechanism and preferential policies on state budget support, tax, and investment credit for the development of the Vietnam-Korea Industrial Technology Incubator according to the provisions of Prime Minister's Decision No. 1193/QĐ-TTg dated July 30, 2015 on piloting certain special mechanisms and policies for developing the Vietnam-Korea Industrial Technology Incubator in Can Tho City.

CIRCULAR

GUIDELINES FOR MECHANISMS AND POLICIES OF STATE SUPPORT GRANTS, TAXES, AND INVESTMENT CREDIT DEVELOPMENT WITH PREFERENCES, ACCORDING TO DECREE NUMBER 1193/QĐ-TTg OF JULY 30, 2015, ISSUED BY THE PRIME MINISTER ON THE PILOT IMPLEMENTATION OF SOME SPECIAL MECHANISMS AND POLICIES FOR THE DEVELOPMENT OF THE VIETNAM-KOREA INDUSTRIAL TECHNOLOGY INCUBATOR IN CAN THO CITY, ARTICLE 45/2005/QH11 and guiding documents for the Law on Export Tax and Import Tax;BASED ON THE LAW ON VALUE ADDED TAX NUMBER 13/2008/QH12, THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON VALUE ADDED TAX NUMBER 13/2013/QH13, AND GUIDING DOCUMENTS FOR THE LAW ON VALUE ADDED TAX; 

Pursuant to the Law on Export Duties and Import Duties No. 107/2016/QH13No. BASED ON THE LAW ON ENTERPRISE INCOME TAX NUMBER 14/2008/QH12, THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON ENTERPRISE INCOME TAX NUMBER 32/2013/QH13, AND GUIDING DOCUMENTS FOR THE LAW ON ENTERPRISE INCOME TAX;

BASED ON THE LAW ON PERSONAL INCOME TAX NUMBER 04/2007/QH12, THE LAW AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE LAW ON PERSONAL INCOME TAX NUMBER 26/2012/QH13, AND GUIDING DOCUMENTS FOR THE LAW ON PERSONAL INCOME TAX;June 2024; BASED ON THE LAW ON LAND NUMBER 45/2013/QH13 AND GUIDING DOCUMENTS FOR THE LAW ON LAND;onBASED ON THE LAW ON INVESTMENT NUMBER 67/2014/QH13 AND GUIDING DOCUMENTS FOR THE LAW ON INVESTMENT;No. 31DECREE NUMBER 1193/QĐ-TTg OF JULY 30, 2015, ISSUED BY THE PRIME MINISTER ON THE PILOT IMPLEMENTATION OF SOME SPECIAL MECHANISMS AND POLICIES FOR THE DEVELOPMENT OF THE VIETNAM-KOREA INDUSTRIAL TECHNOLOGY INCUBATOR IN CAN THO CITY;1THE MINISTER OF FINANCE ISSUES THIS CIRCULAR TO PROVIDE GUIDELINES FOR MECHANISMS AND POLICIES OF STATE SUPPORT GRANTS, TAXES, AND INVESTMENT CREDIT DEVELOPMENT WITH PREFERENCES ACCORDING TO THE PROVISIONS OF DECREE NUMBER 1193/QĐ-TTg OF JULY 30, 2015, ISSUED BY THE PRIME MINISTER ON THE PILOT IMPLEMENTATION OF SOME SPECIAL MECHANISMS AND POLICIES FOR THE DEVELOPMENT OF THE VIETNAM-KOREA INDUSTRIAL TECHNOLOGY INCUBATOR IN CAN THO CITY (DECREE NUMBER 1193/QĐ-TTg);

THIS CIRCULAR PROVIDES GUIDELINES FOR MECHANISMS AND POLICIES OF STATE SUPPORT GRANTS, TAXES, AND INVESTMENT CREDIT DEVELOPMENT WITH PREFERENCES ACCORDING TO THE PROVISIONS OF DECREE NUMBER 1193/QĐ-TTg OF JULY 30, 2015, ISSUED BY THE PRIME MINISTER ON THE PILOT IMPLEMENTATION OF SOME SPECIAL MECHANISMS AND POLICIES FOR THE DEVELOPMENT OF THE VIETNAM-KOREA INDUSTRIAL TECHNOLOGY INCUBATOR IN CAN THO CITY (DECREE NUMBER 1193/QĐ-TTg).No. Article 1. The Vietnam-Korea Industrial Technology Incubator in Can Tho City (the Incubator), enterprises, cooperatives, production cooperative groups, scientific and technological organizations established under Vietnamese law, and individuals involved in technology incubation at the Incubator.No. Article 2. Investment projects applying technology successfully incubated at the Incubator (Investment Projects).No. Article 3. Relevant agencies and organizations participating in managing the activities of the Incubator.

Article 4. Mechanism for support from state budget funds.No. State budget funds for constructing and completing technical infrastructure in the Incubator area within the O Mon Industrial Park shall be implemented according to Clause 1, Article 4 of Decree No. 1193/QĐ-TTg and decisions of competent state authorities.No. Article 5. Management and use of land by the Incubator.June 2024; 1. The Incubator may lease land for investment in building infrastructure. For areas leased with annual rent payments, the Incubator has the right to sublease land with annual rent payments; for areas leased with lump-sum rent payments for the entire lease period, the Incubator has the right to sublease land with lump-sum rent payments for the entire lease period or annual rent payments. The Incubator is exempted or reduced from land rental fees according to Decree No. 46/2014/NĐ-CP of May 15, 2014, issued by the Government, and the Circular guiding the Minister of Finance applicable to industrial parks.

2. Enterprises incubating technology at the Incubator and main investors of Investment Projects must use land for its designated purpose; they will be granted Land Use Right Certificates, Ownership Certificates of Housing and Other Property Attached to Land, and have rights and obligations as stipulated in Articles 174 and 175 of the 2013 Land Law.No. Pursuant to Law on Land No. 45/2013/QH13 and guiding documents for the Law on Land;

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

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

WHEREAS,Decision No. 77/2007/QĐ-BGDĐT dated December 20, 2007 issued by the Minister of Education and Training on procedures and requirements for recognition of foreign education documents awarded to Vietnamese citizens by foreign educational institutions which have been amended and supplemented by Circular No. 26/2013/TT-BGDĐT dated July 15, 2013 issued by the Minister of Education and Training. LIST OF ADMINISTRATIVE PROCEDURESNo. Decision No. 1193/QĐ-TTg dated July 30, 2015 of the Prime Minister on piloting certain mechanisms and special policies for developing the Vietnam-Korea Industrial Technology Incubator in Can Tho City;No. a mechanism, special policy for developing the Vietnam-Korea Industrial Technology Incubator in Can Tho City; CTho;

At the proposal of the Director of the Department of Tax Policy,"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."p, use Internet services and information on the network;

The Minister of Finance issues this Circular to guide the mechanisms and preferential policies regarding state budget support, tax, and investment credit development according to Decision No. 1193/QĐ-TTg dated July 30, 2015 of the Prime Minister on piloting certain mechanisms and special policies for developing the Vietnam-Korea Industrial Technology Incubator in Can Tho City (Decision No. 1193/QĐ-TTg);"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation." a mechanism,No. policy special for developing the Vietnam"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."Korea Industrial Technology Incubator - Tho; CThis Circular guides the mechanisms and preferential policies regarding state budget support, tax, and investment credit development according to Decision No. 1193/QĐ-TTg dated July 30, 2015 of the Prime Minister on piloting certain mechanisms and special policies for developing the Vietnam-Korea Industrial Technology Incubator in Can Tho City (Decision No. 1193/QĐ-TTg).

Article 1. Scope of Regulation

Article 1. The Vietnam-Korea Industrial Technology Incubator in Can Tho City (the Incubator), enterprises, cooperatives, production cooperative groups, scientific and technological organizations established under Vietnamese law, and individuals related to technology incubation at the Incubator. Article 2. Investment projects applying successfully incubated technologies at the Incubator (Investment Projects).

Article 2. Applicability

Article 3. Relevant agencies and organizations participating in managing the activities of the Incubator.

Article 4. The Incubator, technology incubating enterprises at the Incubator, and investment projects shall comply with the provisions of Clause 1, Clause 2, and Clause 3 of Article 3 of Decision No. 1193/QĐ-TTg.

Article 3. Mechanism for Support from State Budget Funds

State budget funds for constructing and completing technical infrastructure in the Incubator area within the O Mon Industrial Park shall be implemented in accordance with Clause 1 of Article 4 of Decision No. 1193/QĐ-TTg and decisions of competent state authorities.

Article 4. Management and Use of Land by the Incubator

1. The Incubator is granted land use rights for investment in building infrastructure. For the portion of leased land where annual rent is paid, the Incubator has the right to sublease the land with the form of annual rent payment; for the portion of leased land where the rent is paid once for the entire lease period, the Incubator has the right to sublease the land with the form of one-time payment for the entire lease period or annual rent payment. The Incubator is exempted or reduced from land rent according to Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government and the Circular guiding the Minister of Finance applicable to industrial parks.

2. Enterprises incubating technology at the Incubator and enterprises owning investment projects must use the land for the purpose determined; they are issued certificates of land use rights, ownership of houses and other immovable property attached to the land, and have rights and obligations as stipulated in Articles 174 and 175 of the Land Law 2013.

1. The Incubator is granted land leases by the State to invest in constructing and operating infrastructure. For the leased area where annual rent payments are made, the Incubator has the right to sublease the land with the form of annual rent payments; for the leased area where a lump-sum payment covers the entire lease period, the Incubator has the right to sublease the land with either the form of a lump-sum payment covering the entire lease period or annual rent payments. The Incubator is exempted from or granted reductions in land rent according to Decree No. 46/2014/NĐ-CP dated May 15, 2014 of the Government and the Circular guiding the Minister of Finance applicable to Industrial Zones.

2. Technology incubation enterprises within the Incubator and businesses that are the main investors in projects tied to the Incubator's infrastructure must use the land for the intended purpose as determined; they are issued Land Use Right Certificates, House Ownership Certificates, and Certificates for Other Assets Attached to the Land, and have rights and obligations as stipulated in Article 174 and Article 175 of the Land Law 2013.

Article 5. Credit Incentives

1. Investment projects for production and business development of products and application of technology successfully incubated at the Incubator and listed in Appendix I of the List of Projects Borrowing Credit for Investment issued together with Decree No. 75/2011/ND-CP dated August 30, 2011 of the Government on investment credit and state export credit shall be eligible to borrow funds from the Vietnam Development Bank in accordance with regulations.

2. Enterprises that are the main investors of projects falling within the scope of guarantee for borrowing capital as stipulated in Article 3 of Decision No. 03/2011/QĐ-TTg dated January 10, 2011 of the Prime Minister on the issuance of regulations on guarantee for small and medium-sized enterprises borrowing capital from commercial banks shall be guaranteed by the Vietnam Development Bank to borrow capital from credit institutions operating in Vietnam in accordance with regulations.

Article 6. Tax Policy Incentives

1. Import Tax Incentives

a) For the Incubator

- Machinery, equipment, spare parts, materials, transportation means not yet produced domestically; technology not yet developed domestically; scientific literature, books, magazines, and electronic information sources on science and technology imported directly for the Incubator's technology incubation activities shall be exempted from import tax.

- The People's Committee of Can Tho City shall approve the List of goods imported directly for the Incubator's technology incubation activities to implement the exemption of import tax in accordance with this provision.

b) For enterprises incubating technology at the Incubator

- Machinery, equipment, spare parts, materials, transportation means not yet produced domestically; technology not yet developed domestically; scientific literature, books, magazines, and electronic information sources on science and technology imported by enterprises directly for technology incubation activities at the Incubator shall be exempted from import tax.

- The Incubator shall be responsible for approving the List of goods imported directly for technology incubation activities at the Incubator by enterprises to implement the exemption of import tax in accordance with this provision.

c) For investment projects at the Incubator

- Goods imported to form fixed assets of investment projects at the Incubator shall enjoy preferential import tax treatment in accordance with Clause 6, Clause 7, and Clause 8 of Article 12 of Decree No. 87/2010/NĐ-CP dated August 13, 2010 of the Government detailing the implementation of certain provisions of the Law on Export Tax and Import Tax (Decree No. 87/2010/NĐ-CP).

- The Incubator shall be responsible for approving the List of goods imported to implement the exemption of import tax in accordance with this provision.

- In cases where necessary (for investment projects not belonging to priority investment sectors listed in Appendix I issued together with Decree No. 118/2015/NĐ-CP dated November 12, 2015 of the Government detailing and guiding the implementation of certain provisions of the Investment Law), the People's Committee of Can Tho City shall report.

d) Procedures and documents for the exemption of import tax, registration of the List of goods imported for tax exemption, and reports on the inspection of the use of imported goods exempted from tax shall be carried out in accordance with Article 103, Article 104, and Article 105 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance on customs procedures, customs supervision, export tax, import tax, and management of taxes on exported and imported goods.

đ) In addition to the procedures and documents prescribed in point d, Clause 1, Article 2 of this Circular, when registering the List of goods imported, the declarant must provide the customs authority with the List of goods imported directly for the Incubator's technology incubation activities approved by the People's Committee of Can Tho City; the List of goods imported directly for the technology incubation activities at the Incubator by enterprises; and the List of goods imported to form fixed assets for investment projects approved by the Incubator (submit one copy and present the original for verification).

2. Corporate Income Tax Incentives

a) Income of enterprises from implementing new investment projects for high-tech technology incubation in various fields at the Incubator or income of enterprises from implementing new investment projects applying high-tech technology included in the list of prioritized high-tech technologies for development under the High-Tech Law which have been successfully incubated at the Incubator shall be subject to a preferential tax rate of 10% for a period of 15 years, exempted from tax for 04 years, and reduced by 50% of the tax payable for the next 9 years.

b) Income of enterprises from conducting research and development projects and new investment projects for technology incubation in various fields at the Incubator or income of enterprises from implementing new investment projects applying technology successfully incubated at the Incubator shall be implemented in accordance with the Corporate Income Tax Law and its guiding documents.

c) Income of enterprises from expanding investment projects as specified in points a and b of this clause shall be implemented in accordance with the Corporate Income Tax Law and its guiding documents.

d) The period for applying the preferential tax rate: The period for tax exemption and reduction as stipulated in this clause shall be implemented in accordance with the Corporate Income Tax Law and its guiding documents.

đ) Procedures for implementing corporate income tax incentives shall be carried out in accordance with Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Minister of Finance guiding the implementation of Decree No. 218/2013/NĐ-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Corporate Income Tax Law, Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Minister of Finance guiding corporate income tax under Decree No. 12/2015/NĐ-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing certain articles of tax laws and amending and supplementing certain articles of tax decrees, and amending and supplementing certain articles of Circular No. 78/2014/TT-BTC dated June 18, 2014, Circular No. 119/2014/TT-BTC dated August 25, 2014, and Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance.

3. Regarding value-added tax, the policy on value-added tax for products generated from activities applying incubation technology at the Incubator shall be implemented in accordance with the provisions of the Law on Value-Added Tax, the Law Amending and Supplementing Certain Provisions of the Law on Value-Added Tax, and current guiding documents.

4. Regarding personal income tax, income from salaries and wages of scientific researchers and technologists arising from direct support activities for technology incubation at the Incubator shall be implemented in accordance with the provisions of the Double Taxation Avoidance Agreement, the Law on Personal Income Tax, the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, and current guiding documents.

5. Land Rent Reduction Benefits

a) Based on the application for exemption and reduction of land rent submitted by the Incubator, the Can Tho City Tax Department shall determine the amount of land rent to be exempted or reduced and issue a decision on the exemption and reduction of land rent for the Incubator within the authority stipulated in point a, Clause 1, Article 21 of Decree No. 46/2014/NĐ-CP. The procedures and formalities for the exemption of land rent for the Incubator shall be carried out in accordance with Circular No. 77/2014/TT-BTC dated June 16, 2014, issued by the Minister of Finance, guiding certain provisions of Decree No. 46/2014/NĐ-CP dated May 15, 2014, of the Government on collecting land rent and water surface rent.

b) Investment projects as prescribed in Clause 3, Article 3 of Decision No. 1193/QĐ-TTg shall be exempted from land rent for the first five years from the date of signing the land lease contract with the Incubator and shall have their land rent reduced by 50% for the next five years in accordance with Clause 2, Article 6 of Decision No. 1193/QĐ-TTg.

- The level of benefits for the exemption and reduction of land rent for investment projects must be clearly stated in the land lease contract signed between the Incubator and the main investor of the project and recorded specifically in the Certificate of Investment Registration (for investment projects that are granted a Certificate of Investment Registration).

- The land lease contract signed between the Incubator and the main investor of the project must separately list the land rental fee determined based on the land price rate provided by the State to the Incubator for leasing purposes, serving as the basis for determining the amount of land rent that the main investor of the project can be exempted or reduced from, and specifying the specific period during which the land rent will be exempted or reduced according to regulations. The land lease contract must be submitted to the Can Tho City Tax Department.

- The Can Tho City Tax Department shall be responsible for monitoring and inspecting the exemption and reduction of land rent for the main investors of investment projects.

Article 7. On Content of Support for Scientific Research and Technological Development and Human Resource Training

1. Enterprises participating in technology incubation at the Incubator shall be supported with the maximum funding level as currently prescribed for advisory and support activities related to technology incubation, registration of intellectual property rights protection for completed technologies incubated at the Incubator, and registration for certification as a science and technology enterprise.

2. Human resource training support:

a) For domestic short-term training, retraining, and workshops: Maximum support up to 100% of the training, retraining, and workshop costs but not exceeding four million dong per person per year for management personnel and research and development teams of enterprises participating in technology incubation at the Incubator. Additionally, support up to 50% of the training, retraining, and workshop costs for the enterprise's human resources.

b) For overseas short-term training, retraining, and workshops: Maximum support up to 50% of the training, retraining, and workshop costs for the research and development teams of enterprises participating in technology incubation at the Incubator, in accordance with current regulations on the training and retraining of civil servants.

c) The content and level of expenditure for training, retraining, and workshops should be implemented in accordance with the guidance provided in Circular No. 139/2010/TT-BTC dated September 21, 2010, issued by the Minister of Finance, regarding the preparation of budgets, management, and utilization of state budget funds allocated for the training and retraining of civil servants, and Circular No. 05/2011/TTLT-BKHĐT-BTC dated March 31, 2011, jointly issued by the Ministry of Planning and Investment and the Ministry of Finance, providing guidance on assistance for training and retraining of human resources for small and medium-sized enterprises.

3. Financial support for scientific research and technological development for enterprises incubating technology at the Incubator shall be provided at the following levels:

a) Free office space at the Incubator, but not exceeding 60 square meters, and excluding service costs such as electricity, water, and communication.

b) Up to 50% support for machinery and equipment rental fees from the Incubator.

c) Up to 50% support for technology transfer activities, research to master technology, purchase of materials, raw materials, and fuel used in experimental research processes at the Incubator's laboratories. The total financial support shall not exceed 500 million dong per year for each incubating enterprise at the Incubator. Financial support for enterprises in these activities shall be implemented in accordance with the principle of full cost allocation to the final product as stipulated in Decree No. 95/2014/NĐ-CP dated October 17, 2014, on investment and financial mechanisms for scientific and technological activities and guiding documents.

The Director of the Incubator shall establish an independent advisory council to select and recruit proposals for technology incubation at the Incubator. The Director of the Incubator shall approve the content, funding, and duration of support for research and development and human resource training in accordance with current regulations on the use of state budget funds for scientific and technological tasks. The period of technology incubation at the Incubator supported by state budget funds shall not exceed three years from the date of allocation of support funds or approval of implementation.

Enterprises participating in technology incubation at the Incubator shall be granted ownership and usage rights over research results and industrial development outcomes funded by the state budget in accordance with Circular No. 15/2014/TT-BKHCN dated June 13, 2014, issued by the Minister of Science and Technology, concerning the procedures and formalities for granting ownership and usage rights over research results and technological development outcomes funded by the state budget.

Article 8. Implementation funds

1. The operating expenses of the management body of the Incubator shall be balanced and allocated from the local government budget by the People's Committee of Can Tho City.

2. Sources of funds for implementing training support: Allocate from local budget funds for education and training services and central government supplementary budget funds with specific targets for localities (if any).

3. Sources of funds for implementing scientific research and technological development support: Allocate from local budget funds for science and technology services and central government supplementary budget funds with specific targets for localities (if any); funds from National Technology Innovation Funds, National Science and Technology Development Funds, Enterprise Science and Technology Development Funds, and other lawful sources of funding.

4. The funds for implementing incubation activities at the Incubator are balanced and allocated from the following sources of capital:

a) State budget at both central and local levels: science and technology funds, investment development funds, economic service funds; education service funds; ODA funds and other international cooperation and aid funds from organizations and individuals within and outside the country.

b) Credit capital from the Vietnam Development Bank, commercial banks, and credit institutions.

c) Funds from organizations, individuals, and enterprises: self-owned capital of organizations, individuals, and enterprises and other mobilized capital.

d) Funds from various funds: National Technology Innovation Fund, National Science and Technology Development Fund; Enterprise Science and Technology Development Fund; Other funds.

đ) Revenue from income-generating activities of the Incubator including: service provision, land leasing, and other lawful revenue sources.

e) Funds raised from other lawful sources.

5. Annually, the Incubator prepares a financial plan to submit to the competent authority for approval and implementation according to state budget regulations.

Article 9. Effective Date

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

2. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the provisions of the amended, supplemented, or replacing documents./.