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Circular 40/2009/tt-Btc: Guidelines For Determining Taxable Income Difference Due To The Revaluation Of Assets

Original Language Title: Thông tư 40/2010/TT-BTC: Hướng dẫn xác định thu nhập chịu thuế đối với khoản chênh lệch do đánh giá lại tài sản

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Circulars define taxable income difference due to the revaluation of assets pursuant to the law on Enterprise Income Tax of 14/2008/QH12 June 3, 2008;
Pursuant to Decree No. 124/2008/ND-CP on December 11, 2008 of the Government detailing and guiding the implementation of some articles of the law on Enterprise Income Tax;
Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government functions, tasks, powers and organizational structure of the Ministry of finance;
The Ministry of finance to specific instructions determining income under the enterprise income tax for the difference due to the revaluation of assets as follows: article 1. Object scope.
1. the applicable object is the active organization of production, sales of goods and services that are taxable under the provisions of the law on enterprise income tax (hereinafter referred to as enterprise).
2. Scope of the difference is due to the revaluation of assets of the enterprise according to the regulations.
Article 2. Tax base.
1.100% capital of State enterprises made revaluation of fixed assets (LOAN) to convert into a joint stock company, the LOAN value is recorded to depreciate under the value revaluation and the difference between LOAN value revaluation and the remaining value of the LOAN recorded on the accounting books are recorded an increase in the State's stake in the business.
2. enterprises perform revaluation of assets pursuant to which to transfer the property when divided, split, merge, merging, transformation business (except in cases referred to in article 2 point 1 above), then the business assets Revaluation have to count enterprise income tax (TNDN) as follows : a) variances due to re-evaluate LOAN to which to transfer the thing when split, split, merge, merging, transformation of enterprises, the difference due to re-evaluate LOAN are included in other income when determining the income subject to tax, in particular as follows:-difference due to re-evaluate LOAN capital contribution allocated to fade into other income when determining the income subject to tax in the property business reviews bring. The allocation difference gradually due to re-evaluate LOAN on the other income of the enterprises have assets reviews bring capital contribution is calculated by the number of remaining years depreciation of LOAN in the business get capital.
-Disparity due to re-evaluate LOAN to property transfer thing when split, split, merge, merging, transformation of enterprises counted once on other income when determining the income subject to tax in the enterprise have the property revaluation to move.
b) variances due to reassess the value of land use has a time limit to which to transfer the thing when split, split, merge, merging, transformation business case, land use right was for the depreciation in value of land use right according to the prescribed regimes, the difference due to reassess the value of land use rights are included in other income When determining the income subject to tax according to the principles stated in point 2a article 2 above.
Variances due to reassess the value of long-term land use rights to which to transfer the thing when split, split, merge, merging, transformation business cases, franchisees the right to use the land has brought the value of land use in production and business activities, but not for the depreciation in value of land use right according to the prescribed regimes, the difference due to reassess the value of temporary land use right is not a computer tax. The case after which the enterprise resumed the transfer of land use right or continue to bring land use right away, which for other business units to get capital to declare and pay tax.
Business case the transfer of land use right, continue to bring land use right away, which for other units for land revaluation when raising capital, things moved when chia, split, merge, merging, transformation of enterprises, the price of land is determined as follows :-for the Earth is the LOAN in an are depreciation (the land-use term) when the transfer price shall be determined is the value of land use rest (rest value = value thereon reviews back when raising capital, things moved when chia, split, merge, merging, transformation of enterprises-part depreciation has been calculated into the cost of the business).
-For land is the LOAN in an not depreciation when the price of capital transfer of land use rights is calculated according to the value of the land use right before the reviews back to capital contribution recorded on the minutes, the minutes of the thing.
For example, A business that has 1,000 m2 of land use and land price recorded on long bookkeeping is 5 billion. After that DN had A 1,000 m2 of land contributed to B business to business activities. The two sides agreed on and have the minutes of revalued land use which is 10 billion. So when A DN capital contribution must have a capital contribution and which clearly value the land use right before the reviews back to raising capital is 5 billion; the value evaluation of land use right as capital contribution is 10 billion. Variances due to reassess the value of long-term land use rights to which franchisees the right to use the land no depreciation for the value of land use, the difference due to reassess the value of temporary land use rights not corporate income tax.
Case DN B does not put this into the land use activities that continue to DN C or continue to bring land use right away, which is for the DNC at a price of 12 billion, the DN B must declare and pay tax. The price of land use to determine the taxable income is calculated by deducting the value of land use before the reviews back to capital contribution recorded on the minutes which is 5 billion.
c) difference due to reassess the land use right to capital contribution to the project to build infrastructure, to sell the difference due to the revaluation of land use based on other income when determining the income subject to tax in property business reviews bring. For long-term land use rights is the difference between value and value evaluation of land-use rights on the books and accounting records; With regard to land use have limited time is the difference between value and value evaluation of land use right or left.
d) When raising capital, the transfer of the property right has two minutes of which the minutes property transfer thing which clearly remaining value on the accounting of assets prior to re-evaluate and reassess the value of the property, the number of remaining years depreciation of LOAN (for LOAN are depreciation) attached to the record of the origin of the property.
3. enterprises receive capital contribution, LOAN transfer property received as divided, split, merge, merging, transformation of enterprises are depreciate according to price reviews back for your business LOAN offer, which (except for the value of land use rights depreciation not prescribed).
Article 3. The Organization made.
This circular effect after 45 days from the date of signing and be applied to the corporate income tax from 2009.
The case of the Socialist Republic of Vietnam has participated in the signing of the Treaty or treaties to which international treaties or agreements which have rules about handling the variances due to re-evaluate other assets with content guidelines in this circular shall follow the provisions of international treaties.
In the process, if there are difficulties and obstacles, the proposal reflects the units of the Ministry of finance to be timely settlement instructions./.