Do software manufacturing enterprises need confirmation from the Ministry of Information and Communications to enjoy corporate income tax incentives?

BaseClause 2 Article 5 Circular 13/2020/TT-BTTTT Regarding regulations on determining software product production activities that meet the process promulgated by the Minister of Information and Communications:

Implementation organization

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2. Organizations and enterprises participating in software product production activities specified in this Circular are responsible for:

a) Take responsibility for the authenticity of the information in the tax incentive proposal for software production activities and self-determine that software production activities meet the process.

b) Send and update information about software products, stages in software product production that meet the process, and deductible tax rates to the Ministry of Information and Communications (Department of Information Technology) for synthesis.

c) Ensure that its software product production activities and software products do not violate intellectual property laws and other relevant legal regulations.

Thus, businesses produce software Take responsibility for the authenticity of the information in the tax incentive proposal for software production activities and self-determine that software production activities meet the process.In other words, the Ministry of Information and Communications does not issue a certificate confirming that software product manufacturing activities meet the process to enjoy corporate income tax incentives.

To enjoy corporate income tax incentives, what procedures must software product production activities meet?

Based onArticle 4 Circular 13/2020/TT-BTTTT Determine software product production activities that meet the process:

Production activities of a software product of an organization or enterprise specified in Article 3 of this Circular are determined to be software product production activities that meet the process when for that product the organizationOrganizations and enterprises carry out at least one of two steps:

– Determine requirements: includes one or more operations such as:

Produce or perfect ideas about software product development;

Describe the characteristics (requirements) of the product and the contexts in which the product is used;

Propose, survey, and clarify requirements for software products; business analysis;

Develop complete requirements for software products;

Consulting on process adjustments;

Agree requirements, review requirements, control capabilities and facilities to confirm product compliance with requirements.

– Analysis and design, includes one or more operations such as:

Requirements specification (functional and non-functional requirements, problems to be solved);

Set up development problems;

Appropriate techniques are implemented to optimize the solution, analysis of software correctness and testability, analysis of the impact of software requirements on the operational environment, requirements are prioritized, approved and updated as necessary;

Data Modeling; functional modeling; information flow modeling;

Identify software solutions;

Solution design, software system design;

Data design, software architecture design, design of software component units and modules;

Design security and information security for software;

Designing customer experience interface.

Software product production activities are shown by one or more of the following documents, corresponding to each operation of the stages that the enterprise has performed:

Documents proving each operation of the Requirements Determination stage.

Documents proving each operation of the Analysis and design stage.

Documents proving the operations of the Programming and code writing stages.

Documents proving each operation of the Software Inspection and Testing stage.

Documents proving each operation of the product finishing and packaging stages.

Documents proving each operation of the Installation, transfer, usage instructions, warranty, and product maintenance stages.

If software manufacturing enterprises have problems in determining whether software product production activities meet the process, who can they contact?

Pursuant to Article 7 of Circular 13/2020/TT-BTTTT on implementation provisions

Execution Terms

1. This Circular takes effect from August 19, 2020.

2. This Circular replaces Circular No. 16/2014/TT-BTTTT dated November 18, 2014 of the Ministry of Information and Communications regulating the determination of software production activities.

3. During the implementation process, if any problems arise, organizations and businesses send documents to the Ministry of Information and Communications (Department of Information Technology) to be handled, resolved, guided or edited and supplemented accordingly.

4. Chief of Office, Director of Information Technology Department, Heads of agencies and units under the Ministry of Information and Communications, Directors of Departments of Information and Communications of provinces and centrally run cities and organizations and businesses are responsible for implementing this Circular./.

Accordingly, if software manufacturing enterprises have problems in determining whether software product production activities meet the process, they can send documents to the Ministry of Information and Communications (Department of Information Technology) to be handled, resolved, guided or edited and supplemented accordingly.