On 07/11/2022, the Minister of Finance issued Circular No. 67/2022/TT-BTC guiding tax obligations when enterprises set up and use the Funds for Scientific and Technological development (referred to as Funds). In particular, there are provisions on tax obligations when enterprises do not use or use 70% of the annual fund deduction.
Within five years after being set up, if a scientific and technological development fund is not used, has been used below 70%, the enterprise must pay the State budget the enterprise income tax on the deducted income but do not use or use not enough 70% of the annual fund deduction, at the same time, interest arising from that corporate income tax must be paid. Interest arising from the amount of corporate income tax payable is determined according to the provisions of Point b Clause 2 Article 4 of Circular 67/2022/TT-BTC. In case of receiving fund transfer, the term of 05 years for receiving fund transfer is determined from the period of calculation of corporate income tax to receive fund transfer.
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The interest rate arising on the recovered corporate income tax calculated on the unused fund is the interest rate of one-year treasury bonds applied at the time of recovery and the interest calculation period is two years as prescribed in Clause 2, Article 17 of the Law on Corporate Income Tax No. 14/2008/QH12.
Funds used include: Funds spent for the right purposes have been settled according to regulations; the amount of money that has been advanced and has full invoices and documents but is not eligible for settlement to carry out the Fund's activities; terms transferred from the Funds of the corporation to the member enterprise, of the parent company to the subsidiary or vice versa; and the amount paid to the National Science and Technology Development Fund or Science and Technology Development Funds of Ministries, Provinces and Cities (if any) as prescribed by the Ministry of Science and Technology.
The transfer between the Funds of the parent company, the corporation and the Funds of the subsidiary, member enterprise and vice versa only applies to subsidiaries or member enterprises in which the parent company owns 100% of the capital and does not include the following cases:
- Foreign-invested enterprises transferred to overseas parent companies;
- The parent company in Vietnam transfers to an overseas subsidiary.
Circular No. 67/2022/TT-BTC takes effect from 23/12/2022.
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