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6th May 2013
Ernst & Young - Tax Alert - New Rules on Depreciation of Fixed Assets - May 2013

On 25 April 2013 the Ministry of Finance (MOF) issued Circular 45/2013/TT-BTC (Circular 45) providing a regime on management, use and depreciation of fixed assets. Circular 45 shall take effect from 10 Jun 2013 and apply from the fiscal year 2013 onwards.

Generally, most contents of Circular 45 are based on the guidance provided in Circular 203/2009/TT-BTC. However, there are certain additional salient points some of which are noted below.

Higher fixed assets’ historical cost threshold

Circular 45 increases the historical cost threshold from VND10 million to VND30 million.

As a result, Circular 45 provides that for fixed assets which are currently monitored, managed and depreciated under Circular 203/2009/TT-BTC and now do not qualify fixed assets, the residual value of these assets is allocated into the production cost of the enterprise for a maximum period of 3 years from the effective date of Circular 45.

Intangible fixed assets being land use rights

The assets are that houses and land for selling or trading by the real estate enterprises are not accounted for as fixed assets and are not amortized.

Click here for English version and here for Vietnamese version.

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