Businesses have the opportunity to deduct 200% of R&D costs when calculating taxes

The National Assembly's draft Resolution on a number of specific mechanisms and policies, especially for private economic development, is under review and is expected to be submitted to the National Assembly for approval at the 9th Session, which will last until June 30.

For activities supporting science , technology, innovation, digital transformation and human resource training, the Government proposes that enterprises are allowed to deduct up to 20% of their taxable income to establish a fund for the development of science, technology, innovation and digital transformation of enterprises.

Accordingly, enterprises can use this fund to self-deploy or order external research and development of science and technology, innovation according to the product contracting mechanism.

In addition, enterprises are allowed to deduct expenses to determine taxable income for expenses for scientific and technological research and development (R&D) and innovation activities of enterprises at 200% of the actual costs of these activities when calculating corporate income tax (higher than the current regulation of 100%).

The government proposes large tax incentives for R&D activities (Photo: Manh Quan).

In addition, the draft proposes that the State support the costs of building or renting and purchasing digital platforms and shared accounting software to provide free of charge to small and micro enterprises, business households and individual businesses according to Government regulations.

In the report examining the draft Resolution sent to the National Assembly Standing Committee, the Economic and Financial Committee said that with the proposal that enterprises are allowed to deduct 200% of R&D costs when calculating taxes, there were opinions suggesting not to stipulate this content in the draft Resolution and not to stipulate a rigid level of 200% because the draft Law on Corporate Income Tax (amended) has been built in a more open and flexible direction for the Government to regulate appropriately and controllably according to specific field contents.

In the appraisal report of the Ministry of Justice, the Ministry said that the draft Law on Science, Technology and Innovation is also expected to regulate these contents. The Ministry of Justice proposed that the Government review and regulate them consistently in documents, avoiding overlapping and duplicate regulations.

In response to the Ministry of Justice’s comments, the Ministry of Finance said that the Draft Resolution closely followed the provisions of Resolution No. 68 to institutionalize breakthrough and outstanding mechanisms and policies to develop the private economy. Law projects currently being submitted or about to be submitted to the National Assembly will be reviewed and amended to ensure consistency with the policies stipulated in this Draft Resolution.

Source: https://dantri.com.vn/kinh-doanh/doanh-nghiep-co-co-hoi-duoc-tru-200-chi-phi-rd-khi-tinh-thue-20250516111720005.htm