This Circular details Clause 5, Article 40 of the Law on Digital Technology Industry on criteria for enterprises implementing electronic equipment manufacturing projects to enjoy corporate income tax incentives.
The Circular applies to agencies, organizations and enterprises related to electronic equipment manufacturing projects in Vietnam.
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According to regulations, enterprises implementing electronic equipment manufacturing projects that enjoy corporate income tax incentives must meet one of the following criteria:
Enterprises are eligible for incentives if they use semiconductor chip products in projects that meet one of two conditions:
One is to use semiconductor chip products with designs owned by Vietnamese organizations, enterprises or Vietnamese individuals.
Ownership is established through self-design or hiring others, including Vietnamese people, to design or purchasing the design from other entities.
Second, use semiconductor chip products manufactured or packaged and tested at factories and production lines in Vietnam.
Enterprises must simultaneously satisfy the following two requirements:
Firstly, the enterprise must have a scientific research, technology development and innovation department with at least 10 employees with university degrees or higher. Of which, at least 50% of the employees in the scientific research, technology development and innovation department are Vietnamese citizens.
For small and medium enterprises according to the Law on Support for Small and Medium Enterprises, it is not mandatory to have a department for scientific research, technology development and innovation, but there must be at least 3 employees with university degrees or higher to carry out this activity. Of which, at least 50% of the employees doing scientific research, technology development and innovation are Vietnamese citizens.
Second, the enterprise must have total expenditure for scientific research, technology development and innovation activities of the enterprise reaching at least 2% of average net revenue in 03 consecutive fiscal years or from 200 billion VND/year or more in 03 consecutive fiscal years; in case the enterprise has been operating for less than 03 years, the average calculation is over the entire operating time since its establishment, but not less than 01 full fiscal year.
The products of the electronic equipment manufacturing project in Vietnam have designs (including requirements specifications, system architecture, detailed designs, schematic diagrams, printed circuit layouts and related technical documents) owned by the enterprise itself. Ownership is established through self-design or hiring others, including Vietnamese people, to design or purchasing the design from other entities.
Enterprises are eligible for incentives when they simultaneously meet two criteria:
Firstly, there must be at least 30% of Vietnamese enterprises in the total number of enterprises participating in and implementing assembly contracts, providing raw materials, supplies, components, and services to directly serve electronic equipment manufacturing projects;
Second, technology transfer must be carried out to at least one Vietnamese organization or enterprise within five years from the date of issuance of the Investment Registration Certificate or the Decision on Investment Policy Approval or a written agreement with a competent state agency. The form and content of technology transfer shall comply with the provisions of law on technology transfer.
Circular No. 33/2025/TT-BKHCN takes effect from January 1, 2026.
Source: https://mst.gov.vn/tieu-chi-de-doanh-nghiep-dien-tu-duoc-huong-uu-dai-thue-thu-nhap-doanh-nghiep-197251126151149208.htm
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