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9th May 2013
Deloitte Vietnam - Tax Alert - Update on New Circular on Fixed Assets

Circular 45/2013/TT-BTC guiding the regime of management, usage and depreciation of fixed assets (“FAs”)

On 25 April 2013, the Ministry of Finance issued Circular 45/2013/TT-BTC (“Circular 45”) guiding the regime of management, usage and depreciation of FAs in order to replace Circular 203/2009/TT-BTC (“Circular 203”). Circular 45 shall be effective starting from 10 June 2013 and is applicable to fiscal year 2013 onwards.

The majority of provisions on management, usage and depreciation of FAs under Circular 45 remain unchanged in comparison with those per Circular 203. However, there are a few updates as follows:

Criteria for being qualified as Fixed Assets

  • Minimum historical cost for qualification as fixed assets has increased to VND30million in comparision with VND10million as regulated in Circular 203.
  • Under Circular 45, the land use right (“LUR”) qualified as intangible FA is now more comprehensively classified as:
- LUR (of either finite or infinite term), which is granted by the State on the basis of collected land using fee (“LUF”), or legally transferred;
- LUR of land leased before the effective date of the Law on Land in 2003, of which the lease for the entire rental period has been fully paid in advance and the remaining pre-paid period is at least five (05) years.
  • In addition, Circular 45 also provides additional cases where LUR shall not be qualified as an intangible FA, such as LUR of land granted by the State without a collection of LUF; one-time full land leasing payment for the entire period (rental period starts after the effective date of 2003 Law on Land or no certificate for LUR is granted);

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