On 11 January 2021, the Ministry of Finance issued Circular No. 03/2021/TT-BTC (“Circular 03”) providing guidance on Corporate Income Tax (“CIT”) exemption and CIT reduction policies applicable to scientific and technological enterprises (“STEs”). Circular 03 takes its effect from 1 March 2021. Accordingly, STEs shall be entitled to a CIT incentive package including exemption from CIT for four years and subsequently nine years with a 50% reduction in CIT.  However, incentive CIT rate of 10% would no longer be applied.

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