Uni 25-08-2016 - Guidance on payments and administration of Technology and science development fund

Circular 12/2016/TTLT-BKHCN-BTC guiding payment and administration of Technology and science development fund. Some contents are stated as follows:

-          Enterprises (non-state enterprises) can self-determined the cost to form the fund but less 10% of CIT assessable income.

-          The fund is only used for  Technology and science development investment activities as stated in article 7, article 8, article 9, article 10, article 11 of this Circular. Enterprises use the fund, not in compliance with purpose, they must pay to State budget the CIT amount to the fund not in compliance with purpose and the incurred interest.

-          Payments from the fund must be enclosed with invoices, documents as regulations.

-          Payments conducted by Technology and science development fund are not recognized to deductible expense when determining CIT taxable income.

-          During 05 years, from the date fund, total used amounts are less than 70% of the prepared fund including transfer (if any), enterprises must pay to State budget the CIT of the fund rest and the interest incurred from that CIT.

-          Annually, enterprises must prepare report form 02 of appendix issued together with this Circular submitted to tax authority, Department of Technology and science and Department of Finance. The submission deadline is as the same as the time of CIT finalization report.

This Circular takes effect from 01 Sep 2016 and applied from CIT tax period of 2016.