CIRCULAR

INSTRUCTIONS FOR USE OF ENTERPRISES’ SCIENCE AND TECHNOLOGY DEVELOPMENT FUNDS

Pursuant to the Law on Science and Technology dated June 18, 2013;

Pursuant to the Law on Technology Transfer dated June 19, 2017;

Pursuant to the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly regarding the fiscal and monetary incentives for the socio-economic recovery and development program;

Pursuant to the Government's Decree No. 95/2017/ND-CP dated August 16, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Science and Technology;

Pursuant to the Government’s Decree No. 95/2014/ND-CP dated October 17, 2014, prescribing the investment and financial mechanism for science and technology activities;

Pursuant to the Government's Decree No. 76/2018/ND-CP dated May 15, 2018, elaborating on and providing guidance on the implementation of a number of articles of the Law on Technology Transfer;

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Upon the request of the Director of the Planning and Financial Department and the Director of the Department of Legal Affairs;

Minister of Science and Technology herein promulgates the Circular, providing instructions for use of enterprises’ science and technology development funds.

Article 1. Scope and subjects of application

1. This Circular provides instructions on how to use enterprises’ science and technology development funds (hereinafter referred to as Funds).

2. This Circular shall apply to enterprises that are incorporated (hereinafter referred to as enterprises), state regulatory authorities, other relevant organizations and individuals.

Article 2. Authority and responsibilities of enterprises

1. Have the autonomy and self-responsibility for management and utilization of their funds for predetermined purposes in accordance with clause 3 of Article 63 in the Law on Science and Technology.

2. Announce the establishment of Funds to specialized authorities in charge of science and technology under the People’s Committees of provinces and centrally-affiliated cities where enterprises obtain their tax registration within 30 days from their establishment.

3. Formulate, approve regulations on proposing, determining, implementing and conducting acceptance testing of science and technology missions; Fund’s expenditure regulations of enterprises; and submit these regulations to their immediately superior tax authorities when submitting their reports on retention and utilization of the Fund’s budgets in the first budgeting phase in accordance with clause 2 of Article 10 in the Government’s Decree No. 95/2014/ND-CP dated October 17, 2014, prescribing investment and financial mechanisms for science and technology activities (hereinafter referred to as Decree No. 95/2014/ND-CP).

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5. Cooperate with state regulatory authorities in examining and inspecting the management and utilization of the Fund in accordance with law.

Article 3. Expenditures on implementation of science and technology missions

1. Performing science and technology missions at the national, ministry or provincial level.

Each Fund shall provide the counterpart fund, depending on the progress towards completion of national-, ministry- or provincial-level science and technology missions that are carried out by enterprises in their role as the presiding or cooperating agency according to scientific research and technological development agreements already in effect and explanatory documents on these missions that have been approved under law on science and technology.

2. Performing science and technology missions at the corporate level:

a) Based on science and technology regulations of each enterprise, its science and technology missions may be carried out using the designation, direct assignment or other method or approach specified in clause 2 of Article 28 in the Science and Technology Law;

b) Regulations on estimate of expenditures on science and technology missions at the corporate level and the lump-sum payment method (full lump-sum payment method applied during the entire process of creation of final products; or partial lump-sum payment) shall be applied to those science and technology missions specified in the science and technology regulations of each enterprise and fund expenditure regulations.  Enterprises may apply the regulations laid down in the Joint Circular No. 27/2015/TTLT/BKHCN-BTC dated December 30, 2015 of the Minister of Science and Technology and the Minister of Finance on lump-sum state budget expenditures on conduct of science and technology missions and other written documents stating replacement and modification thereof;

c) Budget for carrying out science and technology missions shall include expenditures on specific missions according to the approved cost estimate; science and technology regulations; fund expenditure regulations of each enterprise;

d) If any of science and technology products obtained from carrying out science and technology missions that are not funded by the state budget poses any threat to national interests, defence and security, environment or human health, before being introduced into production and life, the appraisal thereof shall be subject to the regulations laid down in the Circular No. 02/2015/TT-BKHCN dated March 6, 2015 of the Minister of Science and Technology, prescribing the evaluation and appraisal of products achieved from carrying out science and technology missions not funded by the state budget.    

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Article 4. Budget for science and technology development missions of enterprises

1. Equipping enterprises with physical infrastructure and technical utilities for their science and technology activities: Establish research and development organizations, centers for analysis, testing, experimentation, inspection, calibration or trial of products; enterprises’ information infrastructure, databases and statistics on science and technology activities; pay for the maintenance, servicing and repair of material infrastructure, technical utilities and equipment needed for scientific and technological activities; allow for other expenditures necessary for science and technology development missions; build quality management systems in place at enterprises as prescribed at point a of clause 3 of Article 10 in the Decree No. 95/2014/ND-CP.

Furnishing enterprises with physical infrastructure and technical utilities needed for science and technology activities shall be subject to regulatory provisions of law on investment; law on construction; law on management and utilization of state capital investments in production and business at enterprises, and other relevant legislation.

2. Purchasing rights of enjoyment and ownership: Technological know-how; technical knowledge about technological advances that are transferred in the form of technological plans, technological processes, technical designs, technical solutions, formulas, specifications, drawings, technical diagrams, computer programs, data; solutions to rationalizing production, innovating new technologies; patents, utility solutions; plant varieties; industrial designs; initiatives; relevant documents, research outcomes, domestic and foreign products needed for scientific and technological activities of enterprises as prescribed at point b of clause 3 of Article 10 in the Decree No. 95/2014/ ND-CP.

The purchase of the right to use and own the technologies on the List of technologies restricted from transfer according to the regulatory provisions of point b of clause 1 of Article 3 in the Government's Decree No. 76/2018/ND-CP dated May 15, 2018, elaborating and guiding the implementation of a number of articles of the Law on Technology Transfer, (hereinafter referred to as Decree No. 76/2018/ND-CP for short) shall be permitted only after competent state authorities issue technology transfer licenses as prescribed in Articles 28, 29 and 30 of the Law on Technology Transfer.

When purchasing rights of enjoyment or ownership related to technology transfer, prices and payment methods shall be determined in compliance with the regulatory provisions of Article 4 in the Decree No. 76/2018/ND-CP.

Expenses incurred that are directly related to the process of purchasing the right to own or use those specified in this clause shall be included in the value of the right of enjoyment and ownership of these items.

3. Purchasing machinery and equipment involved in the technology innovation mission that directly serve production and business activities in order to replace part or all of the technologies already being used with other more advanced technologies with the intention of improving productivity and product quality or developing new products available for use by enterprises.

Purchase of raw materials or input products shall be subject to the regulations laid down in point b of clause 3 of Article 3 in the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly, prescribing the fiscal and monetary incentives for the socio-economic recovery and development program.

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4. Payment of wages, salaries and costs of hiring of professionals or contracts with domestic or foreign science and technology organizations for implementation of science and technology missions of enterprises shall be subject to regulations laid down in point d of clause 3 of Article 10 in the Decree No. 95/2014/ND-CP.

5. Expenditures on science and technology personnel training activities

a) Science and technology personnel training sessions of enterprises shall be provided according to the training or mentoring curriculum and type specified in point dd of Article 10 in the Decree No. 95/2014/ND-CP, including:

- Research group-based training session;

- Science and technology professional training session;

- Postgraduate research;

- Training and mentoring session aimed at improving professional qualification, skills and knowledge of science and technology management, productivity, quality and corporate administration.

b) Training and mentoring activities are carried out by using the method of short-term and long-term domestic or overseas training; the method of practice and work at research institutions, science and technology organizations, domestic and foreign enterprises and corporations; the method of participation in science and technology missions.

c) Based on each enterprise's approved strategy and development plan, it shall have the burden of formulating and approving the science and technology personnel training plan and budgeting for its annual training sessions.

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a) Initiative-related activities shall be carried out in accordance with the regulatory provisions of the Initiative Charter promulgated together with the Government's Decree No. 13/2012/ND-CP dated March 2, 2012 and relevant legislation;

b) Expenditures on initiative-related activities shall be subject to the regulations of the Circular No. 03/2019/TT-BTC dated January 15, 2019 of the Minister of Finance, regulating sources, details and amounts of state budget funding for performing initiative-related activities.

7. Expenditures on science and technology cooperation activities with domestic and foreign organizations, individuals and enterprises, such as conducting surveys with the aim of searching for partners, and on domestic and foreign technology demands; expenses for joint research cooperation missions in the fields of science and technology that receive State incentives shall be subject to the provisions of point g of clause 3 of Article 10 in the Decree No. 95/2014/ND-CP.

8. Expenditures on assessment, testing, inspection, assessment, promotion and commercialization of new products and technologies; registration of intellectual property stipulated in point h of clause 3 of Article 10 in the Decree No. 95/2014/ND-CP shall be subject to relevant law.

9. Expenditures on offering grants or financial aid for carrying out missions specified in the “Support the national innovative startup ecosystem by 2025” project shall be subject to the Circular No. 45/2019/TT-BTC dated July 19, 2019 of the Minister of Finance, prescribing the financial management of implementation of the “Support the national innovative startup ecosystem by 2025” project.  

Article 5. Expenditures on implementation of science and technology transfer missions

1. Expenditures on implementation of projects in industries and sectors eligible for investment incentives, and areas eligible for investment incentives, which receive technology transferred from science and technology organizations shall be subject to Article 8 and 9 in the Decree No. 76/2018/ND -CP.

2. Expenditures on investment in and counterpart funds for innovation start-ups; technological innovation, technology incubation, science and technology business incubation, commercialization of products obtained from the scientific research and technological development activities; technology decoding, investment in material and technical infrastructure needed for technology decoding activities, and hiring of domestic and foreign organizations and individuals providing advisory and management services for investment activities of the science and technology development funds of enterprises under contracts between the parties shall be subject to Article 10 of Decree No. 76/2018/ND-CP, and clause 3 of Article 16 in the Government’s Decree No. 13/2019/ND-CP dated February 1, 2019 on science and technology businesses.

3. Expenditures on procurement and import of sample products, technologies, designs, equipment or systems that need to be decoded for technology decoding activities; hiring of experts offering consulting, search, technical support, and technical labor services needed for technology decoding activities through science and technology missions shall be subject to Article 13 in the Decree No. 76/ 2018/ND-CP.

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5. Expenditures on training courses or drills on enhanced capabilities of technology absorption and mastery shall be subject to Article 28 in the Decree No. 76/2018/ND-CP.

Article 6. Expenditures on Fund management activities

1. Enterprises may spend the Fund's available funds on the following activities directly serving the Fund's management activities:

a) Paying wages, salaries and social insurance, unemployment insurance, health insurance and other contributions for staff directly performing the Fund management duties as prescribed;

b) Paying for allowances to officeholders holding multiple offices in accordance with regulations;

c) Paying for offices (if any);

d) Paying for procurement and repair of stationery, office supplies and property;

dd) Paying for public services;

e) Paying business travel costs;

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2. Amounts of payment for Fund management activities and proportions of payment for Fund management activities to total expense of the Fund shall be subject to the enterprise’s decision and adhere to the principles of cost saving, efficiency and compliance with regulations.

Article 7. Requirements for eligibility to receive grants from the National Science and Technology Development Fund; Science and Technology Development Funds of Ministries; Science and Technology Development Funds of provinces and centrally-affiliated cities where enterprises obtain their tax registration (hereinafter referred to as National, Ministerial or Local Science and Technology Development Fund)

1. With respect to state enterprises already retaining funds from the Fund in accordance with law on taxes, if these retained funds are not used or less than 70% of these retained funds, even including budget transfers (if any), are used within 05 years from the year of fund retention or budget transfer receipt, they must remit the unused or remaining amounts into the National, Ministerial or Local Science and Technology Development Fund. The amount remitted into the National, Ministerial or Local Science and Technology Development Fund must make up at least 20% of the aforesaid unused or remaining amount.

The retained amounts and the used amounts shall be subject to law on taxes.

Other enterprises may contribute to Science and Technology Development Funds of provinces or centrally-affiliated cities where enterprises obtain their tax registration.

2. When being involved in science and technology missions that need grants from the National, Ministerial or Local Science and Technology Development Fund, enterprises already making payment or contribution to that Fund as referred to in clause 5 of Article 11 in the Decree No. 95/2014/ND-CP may submit their requests for such grants.

3. As the fund transferee, the National, Ministerial or Local Science and Technology Development Fund shall offer its grant equaling the transferred amount and additional grants where needed within its fund allocation capabilities. Offering additional grants shall be subject to regulations of the National, Ministerial or Local Science and Technology Development Fund.

4. Application and documentation requirements for grants that enterprises receive from the National, Ministerial or Local Science and Technology Development Fund

a) Steps:

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- Within the maximum period of 05 working days of receipt of application, the National, Ministerial or Local Science and Technology Development Fund shall check whether the complete and valid application is submitted and send the written notification of any possible amendment or supplement to the incomplete or invalid application;

- Within 35 working days of receipt of the complete and valid application, the National, Ministerial or Local Science and Technology Development Fund shall consider deciding whether enterprises are eligible to receive its grants in accordance with clause 3 of this Article.  In case of rejecting the application, the National, Ministerial or Local Science and Technology Development Fund must send the written response clearly stating reasons for such rejection.

b) How to submit application:

The application can be submitted at the office of the National, Ministerial or Local Science and Technology Development Fund; submitted online on the electronic public service portal in accordance with law; or submitted by post.

c) What and how many documents to be submitted:

- What documents to be submitted: Written request for grants from the National, Ministerial or Local Science and Technology Development Fund in proportion to amounts remitted into the Fund; Interpretation and estimate of costs likely to be incurred from carrying out science and technology missions;

- How many documents to be submitted: 01 application package.

Article 8. Entry into force and implementation

1. This Circular is entering into force in June 1, 2022 and applies during the period of utilization of the corporate-level Science and Technology Development Funds from the CIT computation period in 2022.

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3. Instructions about taxes, financial management and management of property formed by using the Fund shall be subject to regulations of the Ministry of Finance.

4. In case where legal normative documents cited in this Circular are amended or supplemented or replaced, new versions thereof or new ones shall apply./.

PP. MINISTER
DEPUTY MINISTER




Le Xuan Dinh

Thông tư 05/2022/TT-BKHCN hướng dẫn sử dụng Quỹ phát triển khoa học và công nghệ của doanh nghiệp do Bộ trưởng Bộ Khoa học và Công nghệ ban hành