Chương III Thông tư 45/2013/TT-BTC: Quy định về trích khấu hao tài sản cố định

Chapter III:

REGULATION ON DEPRECIATION OF FIXED ASSETS

Article 9. Principles of depreciation of fixed assets:

1. All of the enterprise’s current fixed assets must be depreciated excluding the following fixed assets:

- Fixed assets have been fully depreciated but are still used in production and business activities.

- Fixed assets are lost during depreciation.

- Other fixed assets managed but not owned by enterprise.

- Fixed assets are not managed, monitored and recorded in the enterprise’s accounting books.

- Fixed assets are used in welfare activities to serve the enterprise’s employees (excluding the fixed assets to serve employees working at enterprises such as mid-shift rest house, shift, mid-shift canteen, dressing house, toilet, clean water tank, garage, medical room or station for health examination, the employee shuttle bus, training facilities, vocational training and housing for employees built by enterprise).

- Fixed assets from the non-refundable aid after the competent agencies have handed them over to enerprises in service of their scientific research.

- Intangible fixed assets are long-term land use right with land use fee or receiving the legal long-term land use right.

2. The depreciation of fixed assets included in the rational costs when calculating the Enterprise Income Tax  shall comply with the provisions in the legal documents on enterprise income tax

3. In case the fixed assets used in welfare activities to serve the enterprise’s employees specified in Clause 1, Article 9 of this Circular are engaged in the production and business activities, the enterprise shall base on the time and unitilization nature of these fixed assets to perform the depreciation in the enterprise’s business cost and notify the tax agency directly managing for monitoring and management.

4. Fixed assets are lost or damaged during depreciation and may not be repaired or remedied. The enterprises shall determine the cause and responsibility for compensation of the organization or individual causing the loss or damage. The difference between the Residual value of the asset with the compensation of organization or individual causing the loss or damage, the compensation of insurance agency and the value recovered (if any), the enterprises shall use the financial reserve fund for compensation. In case the financial reserve fund is not sufficient for compensation, the enterprises may include the deficit in their rational costs when determining the enterprise income tax

5. Enterprises leasing the operating fixed assets must depreciate the leased fixed assets.

6. Enterprises leasing the fixed assets in the form of financial leasing (referred to as fixed assets from financial leasing) must depreciate the leased fixed assets as the fixed assets owned by enterprises under the current regulations. In case right at the starting time of asset lease, the enterprise leasing the fixed assets from financial leasing shall commit not to repurchase the leased assets in the contract of financial leasing, the enterprise leasing may depreciate the fixed assets from financial leasing under the leasing term in the contract.

7. In case of re-evaluation of value of fixed assets fully depreciated for capital contribution, transfer upon split, consolidation, merger, these assets shall be evaluated by professional evaluation organizations but not lower than 20% of primary price of such assets. The time of depreciation for these assets is the time the enterprises officially take over the assets and put them into use and the time of depreciation is from 3 to 5 years. The specific time shall be decided by the enterprises but they must notify the tax authorities before implementation.

For the enterprises implementing equitization, the time of depreciation of the above fixed assets is the time the enterprises are granted the business registration certificates converted into joint stock companies.

8. Enterprises with 100% state capital implementing the evaluation of enterprises for equitization by the method of discounted cash flow method (DCF), the increasing difference of the state capital between the actual value and the value in acounting books is not recognized as intangible assets and amortized into the production cost in the period but the time shall not exceed 10 years. The starting time of amortization into the costs is the time the enterprises are officially converted into joint-stock companies (with business registration certificate).

9. The depreciation or stoppage of depreciation of fixed assets is implemented from the start date (by a number of days of a month) on which the fixed assets increase or decrease. The enterprises shall record the increase or decrease of fixed assets under current regulations on enterprise accounting system.

10. For capital construction works completed and put into use, enterprises have recorded the increase of fixed assets by provisional price due to unrealized settlement. Upon settlement of capital construction works completed with the difference between the provisional value and settlement value, the enterprises shall adjust the primary price of fixed assets by settlement value ​ approved by competent authorities. The enterprises shall not adjust the rate of depreciation deducted from the time the fixed assets completed and put into use to the time of settlement approval. The depreciation costs after the settlement time are determined on the basis of taking the settlement value of fixed assets approved minus (-) the number depreciated  the time of settlement approval of fixed assets and divided (: ) by remaining time of depreciation of fixed assets as prescribed.

11. For fixed assets monitored, managed and depreciated by enterprises under Circular No. 203/2009/TT-BTC but now ineligible for the primary price of fixed assets in accordance with Article 3 of this Circular, the residual value of these assets shall be amortized into the enterprise’s costs of business and production. The time of amortization shall not exceed three years from the effective date of this Circular.

Article 10. Determination of time of depreciation of tangible fixed assets :

1. For new fixed assets (not used), the enterprises must depend on the time frame of depreciation of fixed assets specified in Appendix 1 issued together with this Circular to determine the time of depreciation of fixed assets.

2. For fixed assets used, the time of depreciation of fixed assets is determined as follows:

In which: The rational value of fixed assets is the purchase price or actual exchange ( in case of sale and purchase and exchange), the Residual value of the fixed assets or the value by assessment of a valuation organization ( in case of being given, offered, donated, allocated or transferred) and other cases.

3. Change of time of depreciation of fixed assets:

a) In case the enterprises wish to determine the time of depreciation of other new and used fixed assets compared with the time frame of depreciation as prescribed in Annex 1 issued together with this Circular, they must plan the change of time of depreciation of fixed assets on the basis of clear explanation of the following contents:

- Technical life service of fixed assets by design;

- Present condition of fixed assets ( time used of fixed assets, asset generation, actual condition of asset);

- The impact of the increase or decrease in depreciation of fixed assets on the result of business and repayment capital to credit institutions.

- For assets formed from B.O.T and B.C.C investment projects, the enterprises have to supplement the Contract signed with the investors.

b) Competence to approve the Plan for change of time of depreciation of fixed assets:

- The Ministry of Finance shall approve the Plan in case:

+ The parent companies of the economic groups, corporations and state companies holding 51% of the charter capital or more decided to establish by Ministries, sectors and Prime Minister.

+ Subsidiaries with their parent company, economic groups and corporations holding 51% of the charter capital or more.

- Service of Finance of centrally-affiliated provinces and cities shall approve for Corporations, independent companies established by the People's Committees of centrally-affiliated provinces and cities, the enterprises of other economic sectors having their head offices in the area.

On the basis of the Plan for change of time of depreciation of fixed assets approved by the competent authorities, within 20 days after the approval date of the Plan, the enterprises shall notify the directly managing tax agency for monitoring and management.

c) Enterprises may change the time of depreciation of fixed assets once for an asset. The extension of time of depreciation of fixed assets shall not exceed the technical life service of fixed assets and does not change the enterprises’ business results from the profit to loss or vice versa in the year making a decision on the change. In case the enterprises change the time of depreciation of fixed assets not in accordance with regulation, the Ministry of Finance and directly managing tax agency shall request the enterprises to re-determine the change as prescribed.

4. In case of impact factors (such as upgrading or removal of one or several parts of fixed assets) to extend or shorten the utilization time previously determined of the fixed assets, the enterprises shall re-determine the time of depreciation of fixed assets according to the three criteria mentioned above at the time of completion of generated operation and make a record stating the grounds for changing the time of depreciation for submission to the competent authority for decision in accordance with Item b, Clause 3 of this Article.

Article 11. Determination of time of depreciation of intangible fixed assets:

1. The enterprises shall determine the time of depreciation of intangible fixed assets by themselves but not exceeding 20 years

2. For the intangible fixed assets which are the value of land use right with term, the leased land use right. The time of depreciation is the time permitted for land use of enterprises.

3. For the intangible fixed assets which are copyright, intellectual property right, plant variety right, the time of depreciation is the term of protection indicated on the degree of protection as prescribed (excluding the extended term of protection).

Article 12. Determination of the time of depreciation of fixed assets in several special cases:

1. For investment projects in the form of Build - Operate - Transfer (BOT) and Business Cooperation Contract (BCC), the time of depreciation of fixed assets shall be determined from the time to put the fixed assets into use until the end of the project. In case the above projects have generated irregular revenue in the years of project implementation but the calculation of depreciation on the above principles affects the enterprises’ business result, they shall make a report to the Ministry of Finance for consideration of the increase or decrease in depreciation as provided for in Clause 3, Article 10 of this Circular.

2. For production lines with military particularity specific and directly involved in tasks of national defense and security in national defense and security companies, based on the provisions of this Circular, the Ministry of Defense and the Ministry of Public Security shall decide the time frame for depreciation of these assets.

Article 13. Method of depreciation of fixed assets:

1. Methods of depreciation:

a) Straight-line depreciation method.

b) Adjusted reducing balance method

c) Method of depreciation based on volume

2. Based on the capacity to meet the applicable conditions specified for each method of depreciation of fixed assets, the enterprises may choose method of depreciation appropriate with each type of enterprises’ fixed asset:

a) The straight-line depreciation method is the method of depreciation by the rate of stability calculation of each year into the enterprises’ costs of business and production of the fixed assets involved in the business operation.

The enterprises operating with high economic efficiency may accelerate their depreciation, but not more than 2 times of the depreciation rate by the straight-line method for rapid technological innovation. The fixed assets involved in business activities and accelerated their depreciation are machinery and equipment, experimental and measuring instruments, equipment and means of transport, management tools, animals, perennial orchards. When performing accelerated depreciation, the enterprises must ensure profitable business. In case the enterprises accelerate their depreciation exceeding 2 times of the rate specified in time frame for use of fixed assets provided for in Appendix 1 attached to this Circular, the excess of accelerated depreciation (over 2 times) is not included in the reasonable costs upon calculation income tax in the period.

b) Adjusted reducing balance method:

This method applies to the enterprises in areas with technology requiring rapid changes and development.

The fixed assets involved in business operations are depreciated by the adjusted reducing balance method must meet the following conditions:

- Being new fixed assets (not used);

- Being machinery, equipment, experimental and measuring instruments.

c) Method of depreciation based on volume:

The fixed assets involved in business operations are depreciated by this method are types of machinery and equipment meeting the following conditions:

- Directly related to product making;

- Determining the total number and volume of products made by design capacity of fixed assets;

- The actual capacity per month in the fiscal year is not less than 100% of design capacity.

The contents of the methods of  depreciation are prescribed in detail in Appendix 2 issued together with this Circular.

3. The enterprises shall decide the method of depreciation, the time of deduction of the fixed assets as prescribed in the Circular and inform the directly managing tax agency prior to implementation.

4. Method of depreciation applicable to each fixed asset which the enterprise has chosen and notified the directly managing tax must be implemented consistently during the process of utilization of fixed assets. In special case of changing method of depreciation, the enterprises must clearly explain the changes in the way of using the fixed assets to bring economic benefits to the enterprises. Each fixed asset is allowed to change only one method of depreciation during the utilization and must be notified in writing to the directly managing tax office.