According to the transitional regulations at Article 42 of Decree No. 76/2018/ND-CP, with regard to technology transfer agreements signed before July 1st, 2018, it is required to register if they are extended. For the case of amendments, supplements to such transfer agreements, the registration is optional.
The application for registration of technology transfer is presented according to the form promulgated in Annex IV issued together with Decree No. 76/2018/ND-CP. The information in the application form to be declared includes:
+ Name of technology: it means name of a specific technology and must be presented in the most general manner.
+ The transferred technology’s field: to be determined according to Vietnam Standard Industrial Classification
+ Value of technology transfer: it is the fee to be paid under each agreement. If at each time point, there is a determined rate, it is required to base on transfer entity and content as well as specific time point in order to declare value of each transferred entity.
+ Quality and productivity of technology products: Quality standard is the criterion to be determined with regard to any product which is manufactured and sold in market; this criterion links with responsibilities of a technology transferor towards a technology transferee and therefore it should not be written generally. Productivity is the amount of products expected to be manufactured thanks to application of transferred technology.
- Provide partial funding for labor salaries and service charges as prescribed in Point c Clause 5 Section III Article 1 of the Decision No. 844/QD-TTg.
- Provide partial funding for digital space, online auxiliary services; pilot production, samples and technology as prescribed in Point b Clause 6 Section III Article 1 of the Decision No. 844/QD-TTg;
- Provide partial funding for short-term campboots at some foreign prestige business accelerators prescribed in Clause 8 Section III Article 1 of the Decision No. 844/QD-TTg.
- Provide assistance in connecting and introducing partners and completing procedures through Vietnamese science and technology representatives and commercial representatives in foreign countries for foreign market penetration as prescribed in Clause 9 Section III Article 1 of the Decision No. 844/QD-TTg.
“Startup” means an enterprise that is able to grow quickly by using intellectual property, technology and new business models and operates for no more than 05 years from date on which the first enterprise registration certificate is issued.
This provision does not refer to whether the transferred machinery and equipment are manufactured domestically or not. Accordingly, the machinery, equipment associated with the technology transfer contract shall be still subject to VAT, even they cannot be manufactured domestically.
In addition, if value of the transferred technology cannot be separated from value of the machinery, equipment, the value of the transferred technology shall be also subject to VAT.
1. An enterprise has the certificate of registration for scientific and technological operation, in which including scientific and technological services
2. Having written contracts of scientific and technological services
3. The services are prescribed in Clause 15 Article 10 of Circular No. 219/2013/TT-BTC
According to Clause 15 Article 10 of Circular No. 219/2013/TT-BTC, scientific and technological services which are eligible to apply 5% VAT are the activities that serve or assist in scientific research and technology development; the activities related to intellectual property; transfer of technologies, technical regulations and standards related to measurement, product quality, goods, nuclear and radiation safety, and atomic energy; services of communications, consultancy, training, dissemination and application of scientific and technological achievements in socio-economic fields under contracts of scientific and technological services, not including online games and internet-based entertainments.
Accordingly, part from advanced technology, new technology and high technology, clean technology now is also prioritized for transfer. “Clean technology” refers to the technology that generates less environmental pollutants as defined in the law on technical standards and regulations, and uses less non-renewable resources than existing technology.
Transferable technologies now are added accompanying machinery and/or equipment of technical know-how and technological know-how, technological solutions
However, this new Law also adds certain technologies banned from transferring, such as:
- Technologies that are no longer popularly used and transferred in developing countries and fail to satisfy national technical standards and regulations;
- Technologies that use toxic chemicals or generate hazardous waste that fails to satisfy the national technical standards and regulations on environment;
- Technologies that use or create radioactive substances that fail to satisfy the national technical standards and regulations.
This Law shall come into force from July 1st, 2018 and replaces the Law on technology transfer No. 80/2006/QH11 dated November 29th, 2006.