The Ministry of Science and Technology (MoST) is drafting a circular to establish criteria for enterprises implementing electronic equipment manufacturing projects to qualify for corporate income tax incentives.

The MoST is currently seeking public feedback on this draft through the ministry's official online portal.

According to the draft, enterprises that wish to receive corporate income tax incentives must meet the specific criteria where revenue from electronic equipment manufacturing accounts for at least 70% of the enterprise's total revenue.

For large enterprises, the company must have a research and development department with at least 10 employees holding university degrees or higher, including at least five Vietnamese nationals.

For small and medium-sized enterprises, the company must have a research and development department with at least three employees holding university degrees or higher, including at least one Vietnamese national.

Total expenditure on scientific research, technology development and innovation must be at least 3% of the average net revenue over the preceding three consecutive fiscal years; if the enterprise has been operating for less than three years, the calculation will be based on the entire operational period since establishment, but no less than one full fiscal year.

For foreign-invested enterprises implementing electronic equipment manufacturing projects and wishing to receive corporate income tax incentives, the draft stipulates that such enterprises must meet the criteria mentioned above.

If a foreign-invested enterprise does not meet one of the specified criteria, it must fulfill one of the additional criteria as follows:

(1) The enterprise must transfer technology to at least one Vietnamese enterprise within five years from the date of receiving the investment registration certificate, the investment approval decision, or a written agreement with the competent state authority.

(2) The enterprise must have Vietnamese firms involved in the value chain and meet both of the following conditions.

At least 20% to 30% of the enterprises involving or performing assembly contracts, providing materials, components, and services directly for the electronic equipment manufacturing project are Vietnamese ones.

At least 20% of the product's cost must be generated by Vietnamese enterprises participating in the value chain.

The MoST is currently seeking public feedback on this draft through the ministry's official online portal.

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