Pursuant to the law on Enterprise Income Tax in 2008;
Pursuant to Decree No. 124/2008/ND-CP on December 11, 2009 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 regulations on functions, tasks, powers and organizational structure of the Ministry of finance;
The Ministry of Finance shall guide the management mode, use and depreciation of fixed assets for the enterprises as follows: a. GENERAL PROVISIONS article 1. Object, scope: 1. This circular apply to established businesses and activities in Vietnam under the provisions of the law.
Depreciation of fixed assets calculated as prescribed in this circular are used to determine the cost unless the enterprise income tax.
2. The depreciation and herewith was made for each of the fixed assets (hereinafter abbreviated as LOAN) of the business.
Article 2. The wording used in this circular are interpreted as follows: 1. tangible fixed assets: the labour data is primarily having physical form satisfying the criteria of tangible fixed assets, participating in many business cycle but still retains the original physical form as homes architecture, materials, machinery, equipment, vehicles ...
2. intangible fixed assets: are the assets that do not have a physical form, showing the value amounts have been invested satisfy the standards of intangible fixed assets, participating in many of the business cycle, as a number of costs directly related to land use; the cost of the rights issue, with the invention, patent, copyright ...
3. Fixed assets financial lease: is the LOAN that the company's rental business leasing. The end of the lease, lessees are choosing to buy back your property rent or continue to rent according to the conditions agreed in the lease financing. The total amount of rent a property type specified in the lease financing at least equal to the value of the property at the time of signing the contract.
Every LOAN go rent if not satisfy the regulations mentioned above are considered fixed assets operating lease.
4. Fixed assets are similar: the same LOAN is in the same business field and equivalent value.
5. the original fixed assets:-the price of tangible fixed assets is the whole of the costs that businesses have to spend to have tangible fixed assets as of the time of the bringing of property into a status of ready to use.
-The price of fixed assets intangible is the whole of the costs that businesses have to spend to have the intangible fixed assets as of the time of bringing the property into use as intended.
6. reasonable value of fixed assets is the value of the property can be exchanged between the parties has full understanding of the bartering.
7. time use of fixed assets: is the time expected business fixed assets used in production operations, business or determined according to the number of expected product volume, produced from the use of fixed assets under the current rules, in normal conditions in line with the technical-economic parameters of the fixed assets and other factors related to the operation of the fixed assets.
8. fixed assets: depreciation is the decrease in value and use value of fixed assets due to engage in production and business activities, due to the erosion of the natural, due to the technical progress ... in the process of operation of fixed assets.
9. The value accumulated depreciation of fixed assets: total is worth the wear and tear of fixed assets as of the time of the report.
10. fixed assets: depreciation is the calculation and allocation of an original system of fixed assets to the cost of production, business during the use of the fixed assets.
11. The number of estimated depreciation of fixed assets: is the total depreciation was quoted on production costs, the business through the business of fixed assets as of the time of the report.
12. the remaining value of the fixed assets: is the difference between raw reviews of LOAN after the minus (-) accumulated depreciation of (or value accumulated depreciation) of the LOAN as of the time of the report.
13. Repair of fixed assets: is the maintenance, maintenance, replace the damaged incurred during operation in order to restore the operational capacity under standard operation status of fixed assets.
14. Upgrading of fixed assets: as active construction, renovation, additional equipment for LOAN to improve product quality, capacity, features the effect of LOAN compared to original levels or prolong use of the LOAN; introduced new production processes reduce the operational costs of the LOAN than before.
Part B of the REGULATIONS on the MANAGEMENT of FIXED ASSETS of article 3. Standards and awareness of fixed assets: 1. the labour data is the tangible assets have independent structure, or is a system composed of many individual asset Department joined together to perform one or several functions that if lack of any one Division would then both systems cannot be If all three at the same time satisfying the standards below shall be deemed to be fixed assets: a. be sure of obtaining economic benefit in the future from the use of that property;
b. the time used on the 1 year or more;
c. Raw property prices must be determined in a reliable manner and valued at 10,000,000 (ten million) or more.
The case of a system consisting of many individual property sections linked together, where each component has a different time used and if missing a part that both systems still perform its primary functions but due to regulatory requirements, the use of fixed assets requires separate management of each Division of the property, each of the parts of the property that if three simultaneously satisfying the same standards of fixed assets is considered as a fixed tangible assets independently.
For working cattle and/or for the product, then each of the animals satisfy simultaneously the three criteria of fixed assets is considered as a LOAN.
For perennial gardens, the garden, or Fragments of trees simultaneously satisfying three standards of the LOAN is considered a LOAN.
2. Standards and recognize the intangible fixed assets: All actual costs that businesses have spent the same time satisfying all three criteria specified in point 1 above, which do not form the LOAN are considered invisible LOAN.
These expenses do not simultaneously satisfy all three criteria stated in paragraph 1 of article 3 of this circular shall be accounted directly or be gradually allocated to business expenses of the business.
Separately the costs incurred during the deployment phase are recorded as intangible LOAN generated from internal business if satisfied at the same time seven conditions: a. feasible technically to ensure the completion and bringing intangible assets into use according to the intended or for sale;
b. business plan to finish intangible assets for use or for sale;
c. enterprise with the ability to use or sell the intangible asset;
d. intangible assets that should generate economic benefits in the future;
timer is full of resources for technical, financial and other resources to complete the deployment phase, the sale or use of intangible assets;
e. have the ability to determine a sure way the entire costs of the deployment phase to create intangible assets;
g. estimated to have enough time to use the standards and values as specified for intangible fixed assets.
The cost of establishing the business, employee training expenses, advertising expenses incurred before the establishment of the enterprise, the cost for the period of the study, the cost of shifting the location of business advantage, not the intangible fixed assets that are allocated progressively into business costs in time must not exceed 3 years from when the business began operations.
Article 4. Determine the raw cost of fixed assets: 1. Determine the raw price of tangible fixed assets: a. LOAN shopping: tangible Resources reviews tangible LOAN stores (including the purchase of the new and old): is the actual purchase price is charged plus (+) taxes (not including the taxes refundable), the costs directly related to pay out up to now put into fixed assets Thai is ready for use as: loan interest arising in the course of investment in fixed assets procurement; the cost of transportation, unloading; the cost of upgrading; cost of installation, test run; stamp fees and other costs directly related to the other.
Tangible LOAN case deferred purchase, installment LOAN is the original purchase price paid immediately at the time of purchase plus (+) taxes (not including the taxes refundable), the costs directly related to spend time putting the LOAN into a ready to use such as: shipping costs , unloading; the cost of upgrading; cost of installation, test run; transcript fee (if any).
Where to buy LOAN tangible is homes, architectural objects attached to land use rights land use rights values must be determined and recorded as intangible, while LOAN LOAN home is tangible, material things, the original architecture is the actual purchase price plus (+) pay the expenses directly related to bringing tangible LOAN into use.
The case after purchasing tangible LOAN is homes, architectural objects attached to land use, business lifted or abolished to new construction, the value of land use rights must be determined and recorded as intangible LOAN; raw reviews of new construction LOAN is defined as the price of settlement construction work as defined in the investment management regulation and the current building. Those assets lifted or cancellations are processed according to the accounting rules for liquidation of fixed assets.
b. the LOAN purchase tangible in the form of the Exchange:
LOAN purchase price in the form of resources in Exchange for a LOAN of similar or not tangible assets is the logical value of the LOAN and on tangible or reasonable value of LOAN offers to Exchange (after adding the account to pay extra or minus the receivables on) plus (+) taxes (not including taxes be refunded) , the associated costs are directly paid to take LOAN into a ready to use, such as: the cost of shipping, unloading; the cost of upgrading; cost of installation, test run; transcript fee (if any).
Original LOAN in the form of purchased tangible in Exchange for a LOAN of similar tangible, or may form due to be sold in Exchange for ownership of a similar property is worth the rest of the LOAN offer tangible Exchange.
c. tangible fixed assets built or manufactured: raw reviews LOAN tangible building self worth works settlement when put into use. LOAN case has put to use but have not made the settlement enterprise resource accounting reviews by price and temporary adjustments after payment completed.
Original LOAN self produced tangible is the actual cost of the LOAN plus (+) the tangible cost of installation test run, other costs directly related to the time of the bringing of tangible LOAN into a ready to use (except the internal interest, the value of product recovered during the test run production, testing, the cost is not justified as the material waste, labor or other expenses in excess of the quota provisions in construction or manufacturing).
d. Resource reviews tangible fixed assets due to construction: raw reviews LOAN due to basic construction investment form according to the method of delivery of the bid is the price finalizing construction work as defined in the investment management regulation and the current building plus (+) stamp fee, the costs directly related to the other. Cases of LOAN by the construction was put to use but have not made the settlement enterprise resource accounting reviews by price and temporary adjustments after payment completed.
For fixed assets was the working cattle or for product, perennial gardens, the original is full the actual costs spent for the animals, gardens that formed at the time put into exploitation, use.
đ. tangible fixed assets to be financed, are to be donated, courtesy, because excess detection: raw reviews tangible fixed assets to be financed, are to be donated, courtesy, because excess detection is the value according to the assessment of the Board or professional valuation organization.
e. tangible fixed assets are granted; be moved to: raw reviews LOAN are granted, was moved to include the remaining value of the LOAN on the accounting numbers in the level, or value transfer units according to the assessment of professional valuation organization according to the provisions of the law, plus (+) the direct costs that the party receiving the assets to pay out up to put into a LOAN Thai is ready to use as rental valuation organization costs; the cost of upgrade, installation, test run ... g. tangible fixed assets received the capital contribution, LOAN capital: get back, get back is equity value by the members, shareholders agreed valuation; or business and the capital contribution agreement; or professional valuation organization according to the provisions of the law and were members, shareholders approved.
2. Determine the original fixed assets intangible fixed assets a. intangible stores: raw reviews LOAN invisible stores is the actual purchase price is charged plus (+) taxes (not including taxes be refunded) and the costs directly related to pay out up to put the property into use.
Invisible stores LOAN cases in the form of installment, deferred, LOAN rates origination is the purchase price of the property by the method of pay immediately at the time of purchase (not including deferred interest).
b. intangible fixed assets purchased in the form of swap: raw reviews invisible form purchase LOAN in Exchange for a LOAN of similar or no intangible assets is reasonable value of the LOAN and on invisible, or the reasonable value of the property offer exchange (after adding the account to pay extra or minus the receivables on) plus (+) (no taxes including the tax is refundable), the costs directly related to pay out up to put the property into use as intended.
Original LOAN purchase intangible form in Exchange for a LOAN of similar invisible, or can form due to be sold in Exchange for ownership of a similar property is the value of remaining invisible LOAN offer in Exchange.
c. intangible fixed assets are granted, are to be donated, courtesy, be moved to: raw reviews LOAN granted, invisible are courtesy, be awarded a reasonable value is initially the plus (+) the costs directly related to spend up to putting the property into use.
Original LOAN was moved to is the price indicated on the bookkeeping of the enterprise have the property transfer. The enterprises receiving the property transfer is responsible for resource accounting, depreciation in value, the value of remaining property according to the rules.
d. intangible fixed assets generated from business Insider: raw reviews LOAN invisible was created from internal business is the costs directly related to the sewn construction, test production must spend up to give LOAN to use as intended.
Separately the costs incurred internally to businesses with trademarks, rights released, client list, the cost incurred in the research phase and similar items do not meet the standards and identify invisible LOAN be accounted into the costs of doing business in the States.
preferred LOAN are land use:-the business case was given the land charge land use: raw LOAN price is land use was identified as the whole of the amount spent to have a legitimate land use plus (+) the costs for compensating clearance , leveling, stamp fees (not including the costs spent for the construction works on the land); or is the value of land use get.
-Land rental business cases, the land lease is calculated on business expenses, not recorded as intangible LOAN. Specifically: + If the business paid land rent for the whole period shall be allocated to the cost of business gradually according to the number of years of land lease.
+ If the land rental business to pay the annual rent, the accounting on business expenses in the period respectively of land rents paid annually.
e. LOAN of original invisible is copyright, industrial property rights, rights to plant varieties according to the provisions of intellectual property Law: is the entire actual costs that business spending to get copyrights, industrial property rights, rights to plant varieties according to the provisions of the law on intellectual property.
g. LOAN rates Origination is the software programs: raw reviews LOAN of the software programs that are identified as the whole of the real costs that business has dropped off to have the software program in the case of software programs is a Division can separate with related hardware , integrated circuit layout design semiconductors according to provisions of the law on intellectual property.
3. Fixed assets financial rental: raw reviews LOAN finance reflected in the rental unit is the value of the property at the time of rental property rental start or the present value of the minimum lease payments (in the case of rental property's value is higher than the current value of the minimum lease payments) plus (+) with the direct costs incurred ban the first relates to the financial lease activity.
4. Original fixed assets of the business was changed only in the following cases: a. re-evaluate LOAN value in the case of:-according to the decision of the authorized State agencies.
-Implementation of business reorganization, business ownership transition, transformation business: split, split, merger, consolidation, sale, stock, securities, leasing, converting the company into a limited liability company, joint stock company converted into a limited liability company.
-Use of property to invest outside the business.
b. upgrade investment LOAN.
c. dismantling one or some parts of the LOAN for which the parts are managed according to the standard of 1 LOAN tangible.
When changing the original LOAN, the business must establish a clearly changing bases and redefine the original target, the remaining value on the accounting books, the number of accumulated depreciation, time use of the LOAN and the conduct of prescribed accounting.
Article 5. The principle of fixed asset management: 1. Every LOAN in business must have a separate profile (including the report on the delivery of LOAN, contract, invoice and LOAN purchase vouchers, other related papers). Each LOAN must be classified, numbered and have the card, be monitored in detail under each object record LOAN and are reflected in the window track LOAN.
2. Each LOAN must be managed according to the resource price, the number of accumulated depreciation and residual value on bookkeeping: the remaining value on the accounting books of LOAN = Raw price of fixed assets accumulated depreciation-the number of LOAN 3. For those without using the LOAN, pending liquidation but not all depreciation, business must perform to manage, track, according to the current rules and depreciation according to the provisions of this circular.
4. enterprises should make the management of the fixed assets depreciation was out but still involved in active trading as the conventional LOAN.
Article 6. Classification of fixed assets of enterprises: based on the purpose of use of the fixed asset, the business conduct of classification of fixed assets according to the following criteria: 1. Fixed assets used for business purposes is the fixed asset management by enterprises, used for the business purposes of the business.
a. tangible fixed assets, corporate taxonomy is as follows: category 1: homes, architectural treasures: the fixed assets of enterprises was formed after the construction process as a working Office, shed, water tower, fences, yards, the decoration for homes , roads, bridges, railways, airport runways, bridge, wharf, dry dock and be strong momentum.
Type 2: machines, devices: is the entire machinery and equipment used in the business activities of the business as specialized machinery, equipment, work in the field of oil and gas drilling rigs, cranes, wire transmission technology, the single machines.
Category 3: vehicles, transmission equipment: is the type of means of transport include rail transport, waterways, roads, aviation, pipeline and transmission equipment such as information systems, electrical systems, water pipes, conveyor belts.
Type 4: device management tools: is the equipment, instruments used in the management of the business activity of the business such as computers serving management, electronic equipment, devices, measuring tools, quality control, drying, vacuum cleaners, termite.
Type 5: perennial gardens, working cattle and/or for the product: is the perennial garden as the garden garden garden, tea, coffee, rubber, fruit orchards, lawns, green carpet ...; working cattle and/or for products like the elephant herd, Flock, herd, cows ...
6 type: The type of other fixed assets: as all of the other fixed assets not yet listed in the above types such as pictures, art works.
b. intangible fixed assets: land use, rights, patents, inventions, works of literature, art, science, the product, the results of the performance art, sound recordings, video recordings, broadcasts, satellite signals carry an encrypted program, industrial designs, layout designs of integrated circuit semiconductor , trade secrets, trademarks, trade names, geographical indications and plant varieties and breeding material.
2. Fixed assets for the purpose of benefits, career, security, defense is the fixed asset management by enterprises used for welfare purposes, career, security, national defense and in business. The fixed assets are also classified according to the provisions of point 1 above.
3. Fixed assets preserve, keep, keep households is the fixed assets preserve business households, hold for other units or store state households as defined by competent State bodies.
4. Depending on the requirements of each business, businesses classified in more detail the fixed assets of the business in each group accordingly.
Article 7. Repair, upgrade investment fixed assets: 1. corporate expenses spent to upgrade investment fixed assets are reflected rising raw reviews of LOAN, not accounting the costs this into the cost of production and business in the States.
2. The repair costs of fixed assets are not counted increased LOAN rates origination which is direct or accounting allocation fade into business expenses in the period, but must not exceed 3 years.
For the fixed asset that the repair cycle, the enterprise was quoted before the repair costs according to annual costs. If the number of actual repair of fixed assets is greater than the number quoted as estimating the business be added to the cost of this disparity. If the number of actual repair of fixed assets is less than the already extracted then the difference is cost accounting business in the States.
3. The costs related to LOAN invisible arise after the original record was judged a sure way, increase the economic benefits of the intangible LOAN versus the initial activity, reflected rising LOAN prices plateau. Other costs related to LOAN invisible arose after recorded originally on the cost accounting of production and business.
Article 8. For rent, mortgage, pledge, assignment, liquidation sale LOAN: 1. Every active lease, pledge, mortgage, sale concessions, liquidation of fixed assets is in accordance with the provisions of the current law.
2. for fixed assets rented: a. LOAN activity: rental-rent businesses are responsible for the management, use the LOAN under the provisions of the lease. LOAN lease costs are accounted into the costs of doing business in the States.
-Rental business, as the owner, to track, manage the rental LOAN.
b. with respect to LOAN finance: rental-rent business to track, manage, use fixed assets go rent as fixed assets owned by the business and must fulfill the obligations pledged in the lease of fixed assets.
-Rental business, as the owner, to follow up and implement the provisions of the lease of fixed assets.
c. in the case of the lease of the property (including rent and financial lease activities) regulations go party responsible for rental property repairs during the rental cost of repair of the LOAN going into accounting allowed rental costs or allocated fade into business expenses but the time must not exceed 3 years.
4. With regard to sale and rent back transactions of fixed assets:-the business case of selling and renting back your property fixed is active, rental business must make provisions for business fixed property rental activities. The difference arises when the price agreement, fixed assets rent lower than or higher than reasonable values are right on accounting income in the period incurred or allocated progressively to the costs according to the provisions.
-Business case sale and rent back of fixed assets is the financial lease, business must make provisions for business go to hire financial fixed assets. The difference between between property sales revenue with the remaining value on the accounting books are on income accounting as prescribed.
Part C REGULATIONS on DEPRECIATION of FIXED ASSETS article 9. LOAN depreciation principles: 1. All existing LOAN businesses must depreciate, except the following: LOAN-LOAN has amortized value runs out but are still used in production and business activities.
-LOAN not yet lost out depreciation.
-Other LOAN management by enterprises that are not in the ownership of the business (excluding LOAN financial hire).
-LOAN not management, tracking, accounting in the accounting of the business.
-LOAN used in welfare activities serve the workers of the enterprise (excluding the LOAN serves for workers employed in the enterprise such as: houses between ca, home to eat between ca, home to change clothes, the toilet, the water tank, clean the garage, rooms or clinics for patients , airport shuttle workers, vocational training, housing for workers due to investment in the construction business).
-LOAN is a home and land in the case of acquired the House and land in the State has been granted long-term land use rights land use rights values do not have to calculate the depreciation.
-LOAN from sources of non-refundable aid after competent authorities handed the business to serve scientific research.
-Invisible LOAN is land use.
2. The cost of depreciation of fixed assets as defined in point 2.2 part C section IV circular No. 130/2008/TT-BTC dated 26/12/2008 of the Ministry of Finance shall guide the implementation of some articles of the corporate income tax law No. 14/2008/QH12 and guiding the implementation of Decree No. 124/2008/ND-CP on 11/12/2008 detailing the Government's implementation of some articles of the The enterprise income tax law shall not be calculated into reasonable expenses when calculating the corporate income tax.
3. in case of LOAN used in the active service of welfare for workers of enterprises specified in clause 1 article 9 of this circular has joined the business activities of enterprises based on the duration and nature of use of the fixed assets to perform computer and depreciation on the cost of business enterprises and informed direct tax Manager to track management.
4. LOAN yet depreciation ceases to be lost, damaged but not beyond repair, fix the business, identify the cause, the liability of the collective, individual cause. The difference between the value of the property remaining with indemnification and recovery values are (if any), corporate financial reserve fund used to compensate. Case reserve fund not enough financial offset, then the difference is charged to businesses lack reasonable expenses of the business when determining corporate income tax.
5. LOAN operations for rental businesses to depreciate for the rental LOAN.
6. rental LOAN business in the form of financial lease (finance LOAN) LOAN depreciation must go as hire business owned LOAN under the current rules. The case right at the beginning of rental property, rent LOAN business of finance lease commitments do not buy property in the financial lease rental, the rental business is leasing LOAN depreciation according to the time limit in the rental contract.
7. in case of revaluation value LOAN has run out of capital contribution to depreciation, things moved when split, merge, merging, transformation of enterprises, the LOAN must be the professional valuation organization determine the value but not lower than 20% of the original property. The time of depreciation for this property is the time of the official business receive delivery of the property taken into use and depreciation period from 3 to 5 years. Specific time due to business decisions but must register with the tax authorities before implementation.
8. The 100% state capital business make the business valuation to holdings according to the discount cash flow method (DCF CHILD) then the odds increase of State capital between the actual value and the value indicated on the bookkeeping cannot be recorded as intangible LOAN and gradually is allotted to the cost of production and business in the States but the time not more than 10 years. Start time allocated to the cost of official business point is transformed into a joint stock company (with the business registration certificate).
9. The excerpt or only depreciation LOAN be made starting from the day (according to the number of days of the month) that LOAN increases or decreases. Business accounting implementation increases, reduced LOAN according to the current rules on business accounting.
Article 10. Determine time used tangible fixed assets: 1. for fixed assets is also new (not used), enterprises must base on the time frame used fixed assets stipulated in annex 1 attached to this circular to determine the time of use of the fixed assets.
2. In respect of fixed assets used, time use of fixed assets are determined as follows: time use of LOAN = LOAN's reasonable value x time use of new LOAN of the same type defined by Annex 1 (attached to this circular) price of the LOAN of the same type 100% new (or of an equivalent LOAN on the market) in which : reasonable value of LOAN is the purchase price or the actual Exchange (in the case of sale, swap), the remaining value of the LOAN or the value according to the reviews of professional valuation organization valuation (in this case was for, which was to be donated, courtesy, granted, was moved to) and other cases.
3. Change the time using the fixed property: a. business case want to determine the time of use of the fixed assets used for new and different time frame using specified in annex 1 attached to this circular, enterprises have to plans to change the time using the fixed assets on the basis of a clear explanation of the following content :-the technical lifetime of the LOAN according to the design;
-Current status LOAN (LOAN period was over, the use of the property, the actual condition of the property);
-The impact of the increase, rising depreciation LOAN to business results and capital repayment of credit institutions.
b. the competent approval change of time of use of the fixed assets:-the Finance Ministry approval for State companies, including: the parent company of the corporations, the State Corporation; the subsidiary by the State holds 100% of the Charter capital; the company shares held by the State 51% or over in the economy, the State Corporation.
-Department of finance approval for independent State company which belongs to the Department, the provincial people's Committee, the businesses of different economic components has its headquarters.
On the basis of option change the time using the fixed assets have been approved, within 20 days from the date of approval, business must register with the tax authorities directly managed to track management.
c. only business is to change the time using the LOAN once for a property. The extended use of the secured LOAN does not exceed the technical longevity of LOAN and do not alter the results of the business from interest rates into the hole or vice versa in the year decided to change. Business case change the time using the incorrect LOAN regulations, the Ministry of finance, tax authorities directly managed the business requirements identified in accordance with the regulations.
4. The case of the impact factors (such as upgrading or scrapped one or some parts of fixed assets) to lengthen or shorten the time use identified earlier of fixed assets, the enterprise proceeded to redefine the time use of fixed assets according to the three above criteria at the time of completion of business arising at the same time to set the minutes stating the grounds to alter the time of use, the authority to decide according to the rules in article 10 paragraph 3 b of this circular.
Article 11. Determine the time using intangible fixed assets: 1. Businesses determine time used fixed assets intangible but must not exceed 20 years.
2. for LOAN are land use has a time limit, the time used is the time limit for permitted use of land according to the regulations.
3. for LOAN invisible is copyright, intellectual property rights, rights to plant varieties, the time used is the duration of protection was recorded on the degree of protection according to the regulations (do not count the duration of protection be renewed).
Article 12. Determine time used fixed assets in some special cases: 1. for projects under construction-business forms-transfer (B.O.), time use of fixed assets are determined from the time of the bringing of fixed assets in use until the end of the project.
2. for business cooperation contract (B.C. C) have the foreign party to the contract, after the end of the term of the contract of transfer foreign party does not reimburse the State of Vietnam, the time used fixed assets transferred is determined from the time of the bringing of fixed assets in use until the end of the project.
3. With regard to the production line has a peculiarity of direct military and defense missions, security at the defense companies, security companies, pursuant to the provisions of this circular, the Ministry of defence, the Ministry of public security decided to use the time frame of this property.
Article 13. The method of depreciation of fixed assets: 1. Contents of the straight line depreciation method; the depreciation method under the declining balance be adjusted; the depreciation method under the number, volume products are specified in Appendix 2 attached to this circular.
2. The base meets the conditions specified for each method of depreciation of fixed assets, enterprises are choosing the appropriate depreciation methods for individual fixed assets categories of business: a. depreciation method straight line: fixed assets involved in business activities that are depreciation according to the straight line depreciation method.
Active business has high economic efficiency is fast depreciation but must not exceed 2 times the level of depreciation is determined by the straight line method to quickly innovate technology. Fixed assets involved in business activities was quick depreciation as machinery and equipment; the working tools of measurement, testing; the equipment and means of transport; management tools; cattle, perennial gardens. When made fast depreciation, enterprises must ensure profitable business. Business case fast depreciation exceeding twice the level prescribed in the time frame using the fixed assets referred to in annex 1 attached to this circular, then the excess depreciation deductions fast (more than 2 times) don't count on reasonable expenses when calculating the tax revenue in the period.
b. method of depreciation by declining balance be adjusted: depreciation method under the declining balance have adjusted are applicable to enterprises in the field of technology requires change, grow fast.
LOAN participation in business activities are depreciation according to the declining balance method are adjusted to the same time satisfying the following conditions:-the fixed asset investment Is new (not used);
-Is the type of machinery and equipment; the working tools of measurement, experiments.
c. the method of depreciation according to the quantity, volume product: fixed assets involved in business activities that are depreciation according to this method is the type of machinery, equipment that meets the following conditions simultaneously:-directly related to the production of the product;
-To determine the total volume of products manufactured according to the designed capacity of fixed assets;
-Capacity to use practice averagely, in a fiscal year not lower 50% of design capacity.
3. enterprises perform sign LOAN depreciation method that applies the options business with tax authorities directly managed before depreciation. The case of the selection of the business not on the basis of the conditions of the regulations within 30 days from the date the tax authorities directly managed get the register method of depreciation of fixed assets of enterprises (as postmarked), tax authorities have the responsibility to inform in writing the enterprise to change the depreciation method as appropriate.
4. the depreciation method applied to each LOAN that business has selected and registration should be made consistent throughout the process of using the LOAN unless there is a change in how to use the property to benefit for business or when there are significant changes in the way the estimated recovery of economic benefits for enterprises.
Special circumstances need change depreciation methods, business must clearly explain the change of how to use the LOAN and changes in how the estimated recovery of economic benefits for the enterprise for LOAN to change the method of depreciation of fixed assets each and are only allowed to change the depreciation method must not exceed two times during use and must have the written opinion of the tax authorities direct management.
Part D IMPLEMENTATION article 14. This circular is effective as from 1/1/2010 and replaces decision No 206/2003/QD-BTC dated December 12, 2003 by the Minister of finance regarding the issuance of management mode, use and depreciation of fixed assets.
Article 15. The case of the personal LOAN business meets the regulations on the management of fixed assets in this circular shall be fixed asset depreciation to determine a reasonable cost unless the personal income tax.
Article 16. The unit of the Ministry of finance, within the scope of the function, its mission has the responsibility to implement, organize and guide the business done right this mode./.
