Vietnam Tax Update March 2019

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Our March 2019 Tax and Accounting update looks at recent Decrees, and has our regular review of recent Official Letters released by the Tax Authorities. On 1 February 2019, the Vietnamese Government issued Decree 13/2019/ND-CP regulating policies for Science and Technology Enterprises (“S&T”).


The Decree stipulates the conditions and authorisations to grant S&T Certificates, preferential and supporting policies for S&T enterprises.

The Decree is applicable to enterprises specialising in scientific and technological activities, and the S&T Enterprise Certificate is the basis for implementing preferential and supporting policies for S&T enterprises.

Conditions for enterprises to obtain S&T Enterprise Certificates

To be granted an S&T Enterprise Certificate, enterprises are required to meet the following conditions:

a) Established and operating under the Enterprise Law;

b) Being able to create or apply scientific and technological results which are evaluated, appraised and recognized by competent agencies; and

c) Generating revenue from the production and sales of products developed from scientific and technological results, equating to a minimum of 30% of the total enterprise revenue.

Newly-established enterprises, operating for less than 5 years, that meet the conditions in a and b (above) can be certified as “Scientific and Technological Enterprises.”

The Departments of Science and Technology are authorized to grant the S&T Enterprise Certificates in general, except for certain cases specified in the Decree where Certificates are granted by the Department of Market Development.

Tax Incentives for S&T enterprises

S&T enterprises meeting the above requirements, are entitled to:

• CIT exemption for 4 years; and

• 50% CIT reduction for the next 9 years.

In addition, there are reductions for land rental, water surface rental and credit incentives for S&T enterprises.

The Decree is effective from 20 March 2019.

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On 1 February 2019, the Vietnam Government issued Decree 14/2019/ND-CP adjusting and supplementing Decree 108/2015/ND-CP regarding Special Consumption Tax (“SCT”) laws.

Significant amendments in the Decree include:

• Adding further items exempted from SCT including aircraft used for the purpose of spraying pesticides, firefighting, filming, taking photos and measuring maps (Clause 1, Article 1).

• Procedures, required documents and SCT refund process for temporarily imported and re-exported goods now follow Article 34 of Decree 134/2016/ND-CP (Clause 2, Article 1).

• Procedures, required documents and SCT refund process for goods imported for production and the processing of those goods follow Article 36 of Decree 134/2016/ND-CP (Clause 2, Article 1).

• Where import declarations include both import tax and SCT to be refunded, the application for import tax refund and SCT refund are combined in one application (Clause 2, Article 1).

• Supplementing the conditions for SCT deductions (Clause 3, Article 1).

The Decree takes effect from 20 March 2019.

DAAC Company

Author Since:  22 March, 2019