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MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 23/2023/TT-BTC
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Hanoi, April 25,
2023
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CIRCULAR
GUIDANCE ON REGIME
FOR MANAGEMENT AND CALCULATION OF DEPRECIATION OF FIXED ASSETS OF AGENCIES,
ORGANIZATIONS OR UNITS AND FIXED ASSETS HANDED TO ENTERPRISES BY THE STATE
WITHOUT CACULATION OF THE STATE CAPITAL PORTION OF SUCH ENTERPRISES
Pursuant to the Law on Management and Use of
Public Property dated June 21, 2017;
Pursuant to the Government’s Decree No.
14/2023/ND-CP dated April 20, 2023 on functions, tasks, powers and
organizational structure of the Ministry of Finance;
Pursuant to the Government’s Decree No.
151/2017/ND-CP dated December 26, 2017 on guidelines for certain Articles of
the Law on Management and Use of Public Property;
At the request of the General Director of
Department of Public Asset Management;
The Minister of Finance
promulgates Circular on guidance on regime for management and calculation
of depreciation of fixed assets of agencies, organizations or units and fixed
assets handed to enterprises by the State without caculation of the state
capital portion of such enterprises
Chapter I
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Article 1. Scope
1. This Circular provides for regime for
management and calculation of depreciation of fixed assets of agencies,
organizations or units and fixed assets handed to enterprises by the state
without caculation of the state capital portion of such enterprises. To be
specific:
a) Fixed assets of regulatory agencies,
public service providers, units of people's armed force, agencies of the
Communist Party of Vietnam, Vietnamese Fatherland Front and
social-political organizations.
b) Fixed assets which are office buildings, public
service facilities of social-political and professional organizations, social
organizations, social-professional organizations and other organizations
established in accordance with the regulations in Clause 1, Article 69, Clause
2, Article 70 of the Law on Management and Use of Public Property.
c) Fixed assets handed to the enterprises by the
State without calculation of the state capital portion of such enterprises.
2. This Circular does not regulate:
a) Fixed assets under operating lease; fixed assets
that are being kept on behalf of the State or other organizations and
individuals.
b) Special and specialized fixed assets of the
units of people's armed force specified in Clause 1, Clause 2, Article 64 of
the Law on Management and Use of Public Property. The regime for
management and calculation of depreciation of such fixed assets shall comply
with regulations of the Minister of National Defense and the Minister of Public
Security.
c) Infrastructure assets which serve national and
public interests invested and managed by the State, and handed
over to infrastructure supervisors in accordance with the
Law on Management and Use of Public Property.
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1. This Circular applies to:
a) Regulatory agencies, public service providers,
units of people's armed force, agencies of the Communist Party of Vietnam,
Vietnamese Fatherland Front and organizations assigned to manage fixed
assets specified in Points a and b Clause 1 Article 1 of this Circular.
b) Enterprises assigned to manage fixed assets
specified in Points c Clause 1 Article 1 of this Circular.
2. Social-political organizations, social
organizations, social-professional organizations and other organizations
established according to the law shall be encouraged to apply regulations
specified in this Circular, with the aim to manage and calculate the
depreciation of fixed assets which are not specified in Clause 1, Article 69,
Clause 2, Article 70 of the Law on Management and Use of Public Property.
Chapter II
GENERAL REGULATIONS ON MANAGEMENT OF FIXED ASSETS
Article 3. Standards of fixed assets
1. Identification of assets:
a) An independent asset is an asset.
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c) If a system composed of multiple separate parts
linked together of which the useful life cycle is different remains able to
perform its main functions in case of lack of any of such part, but it and its
parts need to be separately managed, each part is identified as
an asset.
d) Each drought animal and/or each producing
animal is identified as an asset.
dd) Each independent and perennial garden or each
perennial plant is identified as an asset.
e) Land use right for each land plot or the area
assigned to an agency, organization or unit in each land plot is identified
as an asset.
g) Intellectual property right
registered and established according to each copyright registration
certificate, copyright-related right registration certificate, protection title
for industrial property, or plant varieties patent is identified as an asset.
h) Each software is an asset.
i) Brand of each public service provider is
an asset.
2. Assets specified in Clause 1 of this Article
(except for assets specified in Clause 3 of this Article) shall be identified
as fixed assets if they meet 02 standards below:
a) The useful life is 01 (one) year or more.
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3. Assets specified in Clause 1 of this Article of
public service providers that have guaranteed recurrent
expenditure and investment expenses, assets of public service providers
which require its depreciation to be included in the service price according to
the law and assets of public service providers used in business, lease, joint
venture and association without establishment of new legal entity according to
the law shall be identified as fixed assets when they meet 02 standards below:
a) The useful life is 01 (one) year or more.
b) They meet standards of historical costs of
fixed assets according to regulations applicable to enterprises.
Article 4. Classification of fixed assets
1. Classification according to physical properties:
a) A tangible fixed asset is an asset that
has a physical form, independent structure, or is a system composed of multiple
separate parts connected together to perform one or certain functions. To be
specific:
- Type 1: Buildings and constructions: offices,
warehouses, auditoriums, clubs, cultural buildings, sport stadiums, museums,
kindergartens, workshops, classes, lecture halls, dormitories, hospitals,
convalescent homes, guest houses, houses, public houses, other buildings and
constructions.
- Type 2: Architectural structures: warehouses,
storage tanks, parking lots, drying grounds, sports grounds, swimming pools,
bore wells, dug wells, fences and other architectural structures.
- Type 3: Cars, including: official state cars,
cars that serve general works, specialized cars, cars that serve state
reception and other cars.
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- Type 5: Machinery and equipment: Popular official
machinery and equipment, equipment that serves general activities; specialized
machinery and equipment and other machinery and equipment.
- Type 6: Perennial plants, draught animals and/or
animals that serve production.
- Type 7: Other tangible fixed assets
b) An intangible fixed asset is an asset that does
not have a physical form and its formation is invested by an agency,
organization, unit or enterprise or through an operation process. To be
specific:
- Type 1: Land use rights.
- Type 2: Copyright and
copyright-related right.
- Type 3: Industrial proprietorship.
- Type 4: Rights to plant varieties.
- Type 5: Software.
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c) Special fixed asset is an asset of which cost of
formation or real value is not determined, however, it is subject to strict
management (such as: antique, exhibit in museum, monument, ranked historical
relic, ancient document or rare document), fixed asset which is the brand of a
public service provider.
According to actual condition and management
requirements for assets specified in this point, Ministers, heads of
ministerial-level agencies, governmental agencies, other central agencies
(hereinafter referred to as “ministers and heads of central agencies”), the
People's Committees of provinces and central-affiliated cities (hereinafter
referred to as “the People's Committees of provinces”) shall promulgate the
list of special fixed assets under the management by ministries and central or local
agencies (using form No. 02 in Appendix 02 hereto) in order to exercise unified
management.
2. Classification according to origins of assets:
a) Fixed assets formed from procurement.
b) Fixed assets formed from investment in
construction.
c) Fixed assets provided or transferred.
d) Fixed assets that are giveaways or promotional
products (including cases where providers exchange old assets for new assets
after a period of use according to policies of manufacturers/providers).
dd) Fixed assets not listed in the account book.
e) Fixed assets that public service providers can
receive after expiration of the duration of joint venture or association
according to regulations in Clause 6 Article 47 of Decree No. 151/2017/ND-CP
dated December 26, 2017 of elaboration of some Articles of Law on Management
and Use of Public Property (hereinafter referred to as “Decree No.
151/2017/ND-CP”)
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Article 5. Rules for management of fixed assets
1. All current fixed assets of agencies,
organizations, units or enterprises shall be managed strictly regarding their
physical states and values. Such management shall comply with the law on
management and use of public property and other related laws. The indicator of
historical cost, depreciation, the residual value of fixed asset, or the
brand value of a public service provider allocated to joint venture or
association expense is an integer; in case the indicator is a decimal number,
it shall be rounded by adding 01 to the integer part.
2. Agencies, organizations, units and enterprises
shall:
a) Tag their existing fixed assets in accordance
with applicable accounting regulations. Each fixed asset is an asset recorded
in the accounting book.
b) Carry out annual stocktaking of fixed assets;
adjust accounting data if there is a difference.
c) Submit reports on management and use of fixed
assets in accordance with regulations of law on management and use of public
property.
3. In case fixed assets are still usable after
their depreciation is fully calculated or their value is completely depreciated
according to the law, agencies, organizations, units or enterprises shall
continue to manage and monitor such fixed assets according to regulations of
law.
In case of fixed assets that their depreciation is
fully calculated or their value is completely depreciated but their
historical costs must be changed according to regulations in Clause 1
Article 9 of this Circular, such fixed assets shall be depreciated and their
depreciation shall be calculated according to regulations of the law for the
remaining useful life after their historical costs are changed (if any).
4. Historical cost and the residual value of a
fixed asset specified in this Circular shall be used as follows:
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b) The historical cost of the fixed asset that has
been identified in Articles 6, 7 and 8 of this Circular and the residual value
of the fixed asset that has been identified in Article 16 of this Circular
shall not be used in cases where the asset is sold or leased, the land use
right is transferred and its value is determined to make capital contribution
in joint venture and association and to use the fixed asset to participate in
investment project in the form of public-private partnership.
Chapter III
HISTORICAL COST, DEPRECIATION AND RESIDUAL VALUE OF
FIXED ASSET
Article 6. Determination of historical costs of
tangible fixed assets
Historical costs of tangible fixed assets specified
in point a, Clause 1, Article 4 hereof (except for special fixed assets
specified in point c, Clause 1, Article 4 hereof) shall be determined as
follows:
1. The historical cost of a fixed asset formed from
procurement is determined according to the following formula:
Historical cost of a fixed asset formed from
procurement equals (=) (Price on invoice - Discounts or reductions or charges
imposed on sellers (if any)) plus (+) (Costs of transport, loading,
installation and test run minus (-) Revenues from products and refuses during
test run) plus (+) Taxes (exclusive of tax deduction, tax refunds), other fees
and charges according to the regulations on fees and charges plus (+) Other
costs (if any).
Where:
a) Discounts or fines imposed on sellers (if any)
may only be deducted from the value on the invoice if the value on invoice
includes such discounts or fines.
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2. The historical cost of a fixed asset formed from
the investment in construction is the recorded value approved by a competent
authority or a competent person in accordance with the regulation on
construction investment. Some special cases:
a) If an asset is put into use (after the completion
of investment in construction) without the recorded value approved by a
competent agency or a competent person, it shall be recorded as a fixed asset
into the accounting book by the agency, organization, unit or enterprise from
the date on which the asset is accepted and handed over, and then it is put
into use. The historical cost recorded in the accounting book is the
temporarily calculated historical cost. The temporarily calculated historical
cost in this case is selected according to the following priority order:
- Recorded value;
- Value determined according to the Acceptance
Record A-B;
- Total investment or estimated value of the
project that has been approved or estimated value of the project that has been recently adjusted (if the project cost
estimate is adjusted)
If the recorded value is approved by a competent
agency or a competent person, the agency, organization, unit or enterprise
shall modify the temporarily calculated historical cost according to the
recorded value which is approved to adjust modify the accounting book and apply
accounting according to regulations.
b) If the project includes multiple different items
or assets (entities to be recorded as fixed assets in the accounting book)
which are not estimated and recorded respectively, the value estimated and
recorded by a competent agency or a competent person shall be allocated for
each item or asset so that such value will be recorded in the accounting book
according to an appropriate standard (area, specific quantity of each asset or
item).
If the project includes multiple different items or
assets (entities to be recorded as fixed assets in the accounting book) which
are estimated but not recorded, the value recorded by a competent agency or a
competent person shall be allocated for each item or asset in order that such
value will be recorded in the accounting book according to an appropriate
standard (area, quantity and specific
estimated value of each asset or item).
c) If the project includes multiple different items
or assets (entities to be recorded as fixed assets in the accounting book)
which are invested and accepted respectively, items or assets whose investment
in construction is completed and which are accepted and handed over shall be
recorded the accounting book from the date in which such items or assets are
handed over.
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3. The historical cost of a fixed asset, which is
provided or transferred, shall be determined as follows:
Historical cost of the provided or transferred
fixed asset equals (=) cost stated in the record on transfer and receipt of
assets plus (+) (Costs of transport, loading, installation and test run minus
(-) Revenues from products and refuses during test run) plus (+) fees and
charges according to the regulations on fees and charges plus (+) Other costs
(if any)
Where:
a) Historical cost stated in the record on transfer
and receipt of asset shall be determined as follows:
a.1) If the asset has been recorded in the
accounting book, the historical cost in the record on transfer and receipt of
the asset is the historical cost of a fixed asset which has been recorded in
the accounting book of the agency, organization, unit or enterprise that owns
the transferred or assigned asset.
The agency, organization, unit or enterprise that
owns the transferred asset or is assigned to make a plan to handle the asset
shall revaluate such asset and the remaining depreciation period (for asset
which is not recorded in the accounting book) before reporting its value to a
competent agency or a competent person that can make the decision to provide
and transfer such asset. Where:
- If the transferred or assigned asset is a fixed
asset at the agency, organization, unit or enterprise specified in Clause 1
Article 2 of this Circular and it is not recorded in the accounting book, the
re-evaluation of the value of such asset shall comply with regulations in
Points a.2, a.3 and a.4 of this Clause.
- If the transferred or assigned asset is not a
fixed asset at the agency, organization, unit or enterprise specified in Clause
1 Article 2 of this Circular, the re-evaluation of the value of such asset
shall comply with regulations of relevant laws.
a.2) If the asset has not been recorded in the
accounting book but there is a dossier to determine the purchase
price or construction price of the asset and the time when the asset is put
into use, the historical cost in the record on transfer and receipt of
the asset shall be determined according to regulations in Clauses 1 and 2 of
this Article.
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Historical cost in
the record on transfer and receipt of the asset
=
Purchase price of
the new and similar asset or construction price of the new asset with the
similar technical standard at the time in which the asset is put into use
Where:
- The purchase price of the new and similar asset
which is applied to the asset other than building, construction or
architectural structure is the price of the new and similar asset that is being
sold in market at the time in which the asset is put into use.
- The construction price of the new asset with the
similar technical standard which is applied to building, construction or
architectural structure (including the building, construction or architectural
structure formed from procurement) shall be determined according to the
following formula:
Construction price
of the new asset
=
Unit price of the
newly constructed asset which has the similar technical standard as
promulgated by the Administrative Ministry (or as specified in the
regulations of the local area where the asset is located) at the time in
which the asset is put into use
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The area, volume/
quantity of the asset
+
Value of other
structures in association with work/item (ceiling, floor, etc.) as determined
by the Administrative Ministry (or as specified in the regulations of the
local area where the asset is located) at the time in which the asset is put
into use
a.4) If the asset has not been recorded in the
accounting book and there is not any ground for determination of the historical
cost of the fixed asset according to regulations in Points a.2 and a.3 of this
Clause, the agency, organization, unit or enterprise that owns the asset or is
assigned to make a plan to handle the asset shall hire an organization eligible
for valuation to revaluate the residual value of such asset and the remaining
depreciation period in order to determine the historical cost in the record on
transfer and receipt of the asset according to the following formula:
Historical cost in
the record on transfer and receipt of the asset
=
Residual value
according to revaluation
X
Depreciation
period of the similar asset according to regulations (year)
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The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clause 1,
Article 13 of this Circular.
b) Other costs (if any) are reasonable costs related
to the receipt of fixed assets which are provided or transferred. They are
paid by the receiving agencies, organizations, units or enterprises before the
fixed assets are put into use. If a general cost involves multiple fixed
assets, it shall be distributed among the assets according to appropriate
criteria (quantity and value)
4. The historical cost of a fixed asset, which is
giveaway or promotional product, is determined as follows:
Historical cost of the fixed asset which is given
or promoted equals (=) Value of such asset plus (+) (Costs of transport,
loading, installation and test run minus (-) Revenues from products and
refuses during test run) + Taxes (exclusive of tax deduction, tax refunds);
other fees and charges according to the regulations on fees and charges +
Other costs (if any)
Where:
a) Value of an asset which is giveaway is
determined according to the regulation on assets under ownership of the public
and handling of such assets.
b) Value of a promoted asset is determined by the
agencies, organizations, units or enterprises that receive such asset, based on
the market price of the similar asset or the asset which has similar technical
standards or similar origin.
c) Other costs (if any) are reasonable costs
related to the receipt of fixed assets that are giveaways or promotional
products. Such costs are paid by the receiving agency, organization, unit or
enterprise before the fixed assets are put into use. If a general cost involves
multiple fixed assets, it shall be distributed among the assets according to
appropriate criteria (quantity and value)
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Historical cost of
a fixed asset, which is detected as an extra asset
=
Historical
cost specified in the stocktaking record
+
Fees and charges
according to the regulations on fees and charges
+
Other costs (if
any)
Where:
a) Historical cost stated in the stocktaking record
shall be determined as follows:
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a.2) If there is not a dossier to determine the
purchase price or construction price of the asset but there are grounds for
determination of the time when the asset is put into use and the purchase price
of the new and similar asset or the construction price of the new asset with
the similar technical standard at the time in which the asset is put into use,
the historical cost in the stocktaking record shall be determined according to
the following formula.
Historical cost
specified in the stocktaking record
=
Purchase price of
the new and similar asset or construction price of the new asset with the
similar technical standard at the time in which the asset is put into use
Where:
- The purchase price of the new and similar asset
which is applied to the asset other than building, construction or
architectural structure is the price of the new and similar asset that is being
sold in market at the time in which the asset is put into use.
- The construction price of the new asset with the
similar technical standard which is applied to building, construction or
architectural structure (including the building, construction or architectural
structure formed from procurement) shall be determined according to the following
formula:
Construction price
of the new asset
=
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X
The area, volume/
quantity of the asset
+
Value of other
structures in association with work/item (ceiling, floor, etc.) as determined
by the Administrative Ministry (or as specified in the regulations of the
local area where the asset is located) at the time in which the asset is put
into use
a.3) If there is not any ground for determination
of the historical cost of the fixed asset according to regulations in Points
a.1 and a.2 of this Clause, the agency, organization, unit or enterprise that
owns the asset shall hire an organization elibigble for valuation to revaluate
the residual value of such asset and the remaining depreciation period in order
to determine the historical cost in the stocktaking record according to the
following formula:
Historical cost
specified in the stocktaking record
=
Residual value
according to revaluation
X
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Remaining
depreciation period of the asset according to revaluation (year)
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clause 1,
Article 13 of this Circular.
b) Other costs (if any) are reasonable costs that
the agencies, organizations, units or enterprises have paid during the process
of stocktaking, determination of the historical cost, the residual value of
fixed assets for the purpose of recording in the accounting book (including the cost of hiring an organization eligible for valuation
with a view to revaluating the residual value, and the remaining depreciation
period of such assets as prescribed at Point a.3 of this Clause) If
a general cost involves multiple fixed assets, it shall be distributed among
the assets according to appropriate criteria (quantity and value)
6. If the public service provider performs joint
venture or association in the form of establishment of new legal entity, the
historical cost of the fixed asset that the public service provider can receive
after expiration of the duration of joint venture or association specified in
Clause 6 Article 47 of Decree No. 151/2017/ND-CP shall be determined as
follows:
a) If the asset of the public service provider is
divided in kind, the historical cost of a fixed asset is the historical cost of
the fixed asset which is recorded in the accounting book of the legal entity
established form joint venture or association.
If the fixed asset is not recorded in the
accounting book of the legal entity established from joint venture or
association, the public service provider shall hire an organization elibigble
for valuation to revaluate the residual value and the remaining depreciation
period of the asset in order to determine the historical cost of the fixed
asset according to the following formula:
Historical cost of
the fixed asset
=
Residual value
according to revaluation
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Depreciation
period of the similar asset according to regulations (year)
Remaining
depreciation period of the asset according to revaluation (year)
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clause 1,
Article 13 of this Circular.
b) If the asset is tangible and indivisible and the
public service provider repurchases the asset of its partner, the legal entity
established from joint venture or association shall hire an organization
elibigble for valuation to revaluate the residual value of such asset according
to market price (as the basis for determination of the repurposing price of the
partner’s asset) and the remaining depreciation period of the asset, thereby
determining the historical cost of the fixed asset according to the following
formula:
Historical cost of
the fixed asset
=
Residual value
according to revaluation
X
Depreciation
period of the similar asset according to regulations (year)
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The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clause 1,
Article 13 of this Circular.
c) If the partner voluntarily transfers ownership
of its asset without reimbursement to the State and the transferee for
management and use, the historical cost of the fixed asset shall be determined
in the similar way to the historical cost of the asset of the public service
provider that is divided in kind according to regulations in Point a of this
Clause.
7. If the public service provider performs joint
venture or association without establishment of new legal entity and the
parties which participate in joint venture or association contribute their
assets or their capital to investment in construction or procurement of assets
for the purpose of joint venture or association, the historical cost of the
fixed asset that the public service provider receives after expiration of the
duration of joint venture or association according to regulations in Clause 6
Article 47 of Decree No. 151/2017/ND-CP shall be determined as follows:
a) If the public service provider contributes its
asset
a.1) With regard to an asset contributed to joint
venture or association by the public service provider, the public service
provider shall continue to use the historical cost recorded in the accounting
book for the purpose of accounting of the fixed asset during the duration for
joint venture or association and after expiration of the duration of joint
venture or association.
a.2) With a fixed asset formed during the process
of joint venture or association, the public service provider is not required to
apply accounting. When the duration of joint venture or association expires,
the historical cost of the fixed asset of the public service provider shall be
determined according to regulations in Point b of this Clause.
b) If the public service provider and the parties
participating in joint venture or association contribute their capital to
investment in construction or procurement of assets for the purpose of joint
venture or association, during the time of joint venture or association, the
public service provider is not required to apply accounting to the fixed asset
form from the process of joint venture or association but the public service
provider shall monitor such asset. When the duration of joint venture or
association expires, the historical cost of the fixed asset of the public
service provider shall be determined as follows:
b.1) If the asset of the public service provider is
divided in kind, the historical cost of the fixed asset shall be determined
according to the following formula:
Historical cost
of the fixed asset
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Purchase or
construction price of the asset
+
Fees and charges
according to the regulations on fees and charges
+
Other costs (if
any)
Other costs (if any) are reasonable costs related
to the receipt of fixed assets. Such costs are paid by the public service
provider before the fixed asset are put into use. If a general cost involves
multiple fixed assets, it shall be distributed by the public service provider
among the fixed asset according to appropriate criteria (quantity and value).
b.2) If the non-monetary asset cannot be divided
and the joint-venture or association contract specifies that the public service
provider must pay the price according to market price to the partner when
repurchasing the partner's asset, the public service provider and the partner
shall reach an agreement on hiring an organization elibigble for valuation to
revaluate the residual value of such asset according to market price (as the
basis for determination of the repurpase price of the partner’s asset) and the
remaining depreciation period of the asset, thereby determining the historical
cost of the fixed asset according to the following formula:
Historical
cost of the fixed asset
=
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X
Depreciation
period of the similar asset according to regulations (year)
Remaining
depreciation period of the asset according to revaluation (year)
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clause 1,
Article 13 of this Circular.
b.3) If the non-monetary asset cannot be divided
and the partner voluntarily transfers ownership of its asset without
reimbursement to the State and the transferee for management and use, the
historical cost of the fixed asset shall be determined in the similar way to
the historical cost of the asset of the public service provider that is divided
in kind according to regulations in Point b.1 of this Clause.
Article 7. Determination of historical costs of
intangible fixed assets
Historical costs of the intangible fixed assets
specified in point b, clause 1, Article 4 hereof (except for special fixed
assets specified in Point c Clause 1 Article 4 hereof) shall be determined as
follows:
1. The historical cost of an intangible fixed asset
that is the land use right shall be determined as follows:
a) The historical cost of an intangible fixed asset
is the land use right. In certain cases, the value of such right shall be
determined to include in the value of asset as specified in Clause 1 Article
100 of the Government's Decree No. 151/2017/ND-CP. The value of the land use
right is determined according to Clauses 1, 2 and 3 of Article 102 of the
Decree No. 151/2017/ND-CP plus (+) taxes (exclusive of tax deduction, tax
refund) and other fees and charges specified in the law on fees and charges.
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2. The historical cost of intangible fixed asset
formed from investment or procurement is determined as the entire cost paid by
the agency, organization, unit or enterprise for possession of
such asset. With regard to land use right obtained from the
receipt of transfer, the historical cost of the fixed asset shall be determined
according to regulations in Clause 1 of this Article. In case an
intangible fixed asset is formed through an investment project without the
recorded value approved by a competent agency or a competent person and it is
required to adjust the recorded value under recommendations and conclusions of
the competent authority after inspection and audit, the determination and
adjustment in the historical cost of the intangible fixed asset shall comply
with regulations in Clause 2 Article 6 of this Circular.
3. The historical cost of an intangible fixed
asset, which is provided or transferred, shall be determined as follows:
Historical cost
of the intangible fixed asset, which is provided or transferred
=
Historical
cost in the record on transfer and receipt of the asset
+
Costs of
installation and test run (if any)
+
Fees and charges
according to the regulations on fees and charges
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Other costs (if
any)
Where:
a) Historical cost stated in the record on transfer
and receipt of asset shall be determined as follows:
a.1) With regard to an asset that has been recorded
in the accounting book, the historical cost in the record on transfer and
receipt of the asset is the historical cost of a fixed asset which has been
recorded in the accounting book of the agency, organization, unit or enterprise
that owns the transferred or assigned asset.
The agency, organization, unit or enterprise that
owns the transferred or assigned asset shall revaluate such asset and the
remaining depreciation period (for asset which is not recorded in the
accounting book) before reporting its value to a competent agency or a
competent person that can make the decision to provide and transfer such asset.
Where:
- If the transferred or assigned asset is the land
use right, the historical cost in the record on transfer and receipt of the
asset shall be determined according to regulations in Clause 1 of this Article.
- If the transferred or assigned asset is an
intangible fixed asset (except for land use right) at the agency, organization,
unit or enterprise specified in Clause 1 Article 2 of this Circular and it is
not recorded in the accounting book, the re-evaluation of the value of such
asset shall comply with regulations in Points a.2 and a.3 of this Clause.
- If the transferred or assigned asset is not the
land use right or an intangible fixed asset at the agency, organization, unit
or enterprise specified in Clause 1 Article 2 of this Circular, the
re-evaluation of the value of such asset shall comply with regulations of
relevant laws.
a.2) If the asset has not been recorded in the
accounting book but there are grounds (documents or invoices) for determination
of costs for formation of the intangible fixed asset, the historical cost in
the record on transfer and receipt of the asset shall be the entire costs for
formation of the intangible fixed asset
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Historical
cost in the record on transfer and receipt of the asset
=
Residual value
according to revaluation
X
Remaining
depreciation period of the similar asset according to regulations (year)
Remaining
depreciation period of the asset according to revaluation (year)
The depreciation period of the asset shall be
determined according to regulations of ministers, heads of central agencies,
the provincial-level People's Committees as prescribed at Clause 2, Article 13
of this Circular.
b) Other costs (if any) are reasonable costs
related to the receipt of fixed assets which are provided or transferred.
They are paid by the receiving agencies, organizations, units or enterprises
before the fixed assets are put into use. If a general cost involves
multiple fixed assets, it shall be distributed among the assets according to
appropriate criteria (quantity and value)
4. The historical cost of an intangible fixed
asset, which is giveaway or promotional product, is determined as follows:
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=
Value of the fixed
asset, which is giveaway or promotional product
+
Costs of
installation and test run (if any)
+
Taxes (exclusive
of tax deduction, tax refund) other fees and charges according to regulations
on fees and charges
+
Other costs (if
any)
Where:
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b) Value of a promoted asset is determined by the
agency, organization, unit or enterprise that receives such asset according to
the market price at the time of promotion.
c) Other costs (if any) are reasonable costs
related to the receipt of fixed assets which are giveaways or promotional
products. Such costs are paid by the receiving agency, organization, unit or
enterprise before the fixed assets are put into use. If a general cost involves
multiple fixed assets, it shall be distributed among the assets according to
appropriate criteria (quantity and value)
5. The historical cost of an intangible fixed
asset, which is detected as an extra asset, is determined as follows:
Historical
cost of an intangible fixed asset, which is detected as an extra asset
=
Historical
cost specified in the stocktaking record
+
Fees and charges
according to the regulations on fees and charges
+
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Where:
a) Historical cost stated in the stocktaking record
shall be determined as follows:
a.1) If the intangible fixed asset is the land use
right, the historical cost in the stocktaking record shall be determined
according to regulations in Clause 1 of this Article.
a.2) Other intangible fixed assets (except for land
use right)
- If there are grounds (documents or invoices) for
determination of costs for formation of the intangible fixed asset, the
historical cost in the stocktaking record shall be the entire costs for
formation of such intangible fixed asset
- If there is not any ground (documents or
invoices) for determination of the cost for formation of the intangible fixed
asset, the agency, organization, unit or enterprise that owns the asset shall
hire an organization eligible for valuation to revaluate the residual value and
the remaining depreciation period of the asset in order to determine the historical
cost in the stocktaking record according to the following formula:
Historical cost
specified in the stocktaking record
=
Residual value
according to revaluation
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Remaining
depreciation period of the asset according to regulations (year)
Remaining
depreciation period of the asset according to revaluation (year)
The depreciation period of the asset shall be
determined according to regulations of ministers, heads of central agencies,
the provincial-level People's Committees as prescribed at Clause 2, Article 13
of this Circular.
b) Other costs (if any) are reasonable costs that
the agencies, organizations, units or enterprises have paid during the process
of stocktaking, determination of the historical cost, the residual value of
fixed assets for the purpose of recording in the accounting book (including the
cost of hiring an organization eligible for valuation with a view to
revaluating the residual value, and the remaining depreciation period of the
asset as prescribed at Point a.2 of this Clause) If a general cost involves
multiple fixed assets, it shall be distributed among the assets according to
appropriate criteria (quantity and value)
Article 8. Determination of historical costs of
special fixed assets
Historical costs of special fixed assets specified
in Point c Clause 1 Article 4 of this Circular shall be determined according to
conventional value. The conventional value of a special fixed asset is
VND 10.000.000.
Article 9. Changes of historical costs of fixed
assets
1. The historical cost of a fixed asset shall be
changed in the following cases:
a) The value of fixed asset is revaluated according
to the decision of the Prime Minister.
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c) One or certain parts of the fixed asset are
dismantled (in case the value of the fixed asset that has been dismantled is
recorded in the historical cost of the fixed asset).
d) One or certain parts of the fixed asset are
installed.
dd) The fixed asset is partially lost or seriously
damaged due to natural disasters, force majeure events or other unexpected
impacts (except where the asset has been restored through public property
insurance).
e) The value of land use right is adjusted in the
cases specified in Point a, Clause 1, Article 7 hereof and according to the
regulations in Points a, b and c Clause 1, Article 103 of the Decree No.
151/2017/ND-CP.
2. If there is change of the historical cost of a
fixed asset in cases specified in Points a,b,c, d and dd Clause 1 of this
Article, the agency, organization, unit or enterprise shall make a record that
specifies clear explanations about such change and the historical cost of the
fixed asset before and after change. If there is change of the historical cost
of a fixed asset in case specified in Point e Clause 1 of this Article, the
agency, organization, unit or enterprise shall make a record according to
regulations in Clause 2 Article 103 of Decree No. 151/2017/ND-CP. At the same
time, they shall re-establish the standard for the historical cost of the fixed
asset as the basis for determination of depreciation, the residual value of
such asset in order to modify the accounting book and apply accounting
according to regulations of this Circular.
Article 10. Determination of historical costs of
fixed assets in case of change of such historical costs
1. In case of re-evaluation of the value of a fixed
asset during the process of stocktaking according to the decision of the Prime
Minister specified at Point a, Clause 1, Article 9 of this Circular, the
historical cost of the fixed asset shall be re-determined according to
instructions of an agency or a person that has competency in stocktaking and
re-evaluation.
2. In case of upgradation or expansion of a fixed
asset according to the project approved by a competent agency or
person specified at Point b, Clause 1, Article 9 of this Circular, the historical
cost of the fixed asset shall be determined according to the
formula: the historical cost of the asset equals (=)
the historical cost that is recorded plus
(+) the added value due to upgradation and expansion of the fixed asset. The
added value due to the upgradation and expansion of the fixed asset is the
recorded value approved by a competent agency or person in accordance with
regulations of the law on investment, the law on construction and relevant
laws.
3. In case of dismantlement of one or several parts
of the fixed asset specified at Point c, Clause 1, Article 9 of this Circular,
the historical cost of the fixed asset shall be re-determined according to the
formula: the historical cost of the fixed asset equals (=) the historical cost that is recorded minus ( -) the value of the dismantled part of
the fixed asset plus (+) reasonable costs related to the dismantlement paid by
the agency, organization, unit or enterprise until the time of completion of
the dismantlement.
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a) If there is a dossier to determine the purchase
price, recorded value/estimated value of the dismantled part of the fixed
asset, the value of the dismantled part of the fixed asset shall be determined
according to the purchase price, the recorded value/estimated value of the
dismantled part of such fixed asset.
b) If there is not any dossier specified in point a
of this Clause but it is possible to distribute the historical cost of the
fixed asset to the dismantled part of the fixed asset according to the
appropriate criteria (the area, quantity, purchase price, estimated value…),
the value of the dismantled part of such fixed asset shall be determined
according to the distributed value.
c) If there is not any dossier specified in point a
of this Clause and it is impossible to distribute the historical cost of the
fixed asset to the dismantled part of the fixed asset according to point b of
this Clause, the value of the dismantled part of the fixed asset shall be the
purchase price of the new part of the fixed asset in market at the time in
which the asset is put into use.
If it is impossible to determine the purchase price
of the new part of the fixed asset in market at the time in which the asset is
put into use, the agency, organization, unit or enterprise that owns the asset
shall hire an organization elibigble for valuation to determinate the value of
the dismantled part of the fixed asset as the basis for determination of the
historical cost of the fixed asset after dismantlement.
4. In case of installation of one or several parts
of the fixed asset specified at Point d, Clause 1, Article 9 of this Circular,
the historical cost of the fixed asset shall be re-determined according to the
formula: the historical cost of the fixed asset equals (=) the historical cost
that is recorded minus plus (+) the added value due to installation of one or
several parts of the fixed asset plus (+) reasonable costs related to the
installation paid by the agency, organization, unit or enterprise until the
time of completion of the installation.
The added value due to installation of one or
several parts of the fixed asset is the equivalent value of the installed part
of the fixed asset, which is determined according to cases specified in Article
6 of this Circular.
5. With regard to a fixed asset which is partially
lost or seriously damaged due to natural disasters, force majeure events or
other unexpected impacts specified in point dd Clause 1 Article 9 of this
Circular, the agency, organization, unit or enterprise that owns the asset
shall hire an organization elibigble for valuation to revaluate such asset and
the remaining depreciation period of the asset to state in the record of change
of the historical cost of the fixed asset. The historical cost of the
fixed asset in this case is the value of the fixed asset according to
revaluation.
6. In case of adjustment in the value of land use
right specified in point e Clause 1 Article 9 of this Circular, the historical
cost of the asset shall be re-determined according to the formula: the
historical cost of the asset equals (=) the value of the land use right, which
is determined according to Clauses 1, 2 and 3 of Article 102 of Decree No.
151/2017/ND-CP under indicators (land price, the area, land use purpose) after
change plus (+) taxes (exclusive of tax deduction, tax refund) and other fees
and charges specified in the law on fees and charges.
Article 11. Scope of depreciation calculation of
fixed assets
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2. Fixed assets of public service providers shall
be depreciated, including:
a) Fixed assets of public service providers that
have guaranteed recurrent expenditure and investment expenses.
b) Fixed assets of public service providers which
require its depreciation to be included in the service price according to the
law.
c) Fixed assets of public service providers which
are not specified in points a and b of this Clause shall be used in business,
lease, joint venture and association without establishment of new legal entity
according to regulations of law.
3. It is not required to calculate the depreciation
of the following assets:
a) Fixed assets are the land use rights which must
be determined to be included in the value of such assets as specified in
Article 100 of the Decree No. 151/2017/ND-CP.
b) Special fixed assets specified in Point c,
Clause 1 Article 5 hereof.
c) Fixed assets that are still usable after their
depreciation is being fully calculated or their costs are being completely
depreciated (including fixed assets that public service providers can receive
after expiration of the duration of joint venture or association).
d) Fixed assets that are not usable though their
depreciation is not fully calculated and their costs are not completely
depreciated.
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Article 12. Rules for calculating depreciation
of fixed assets
1. Rules for calculating depreciation of fixed
assets
a) The depreciation of fixed assets shall be
calculated once every year in December before the accounting book is closed
b) The depreciation of the fixed assets specified
in point c, Clause 2, Article 11 hereof shall be calculated and such assets
shall also be depreciated according to the regulations in Article 15 hereof.
c) The depreciation of the fixed asset that the
agency, organization, unit or enterprise can receive from another agency,
organization, unit or enterprise according to the decision of a competent
agency or person in a year shall be calculated at the receiving agency,
organization, unit or enterprise in such year.
2. Rules for depreciating fixed assets
a) Rules for depreciating the fixed assets specified
in points a and b, Clause 2 and Article 11 hereof shall be applied in
accordance with regulations for enterprises.
b) With regard to the fixed assets specified in
point c, Clause 2, Article 11 hereof, the depreciation shall be carried out
from the date on which such assets are put into use in the following
activities: business, lease, joint venture and association. The depreciation of
such assets shall be stopped after the date on which such assets stop being
used for the above activities.
c) The depreciation cost shall be allocated for
each professional activity, business, lease, joint venture or association in
order to record the cost of each corresponding activity.
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1. The depreciation period and rate of tangible
fixed assets shall be determined according to the regulations in Appendix 01
hereto, except for the following cases:
a) If the tangible fixed assets are used in the
area where the weather and environmental conditions can affect their depreciation,
in necessary cases, the depreciation period and rate of such assets shall be
stipulated differently from the regulations in Appendix 01 hereto. Ministers,
Heads of central agencies and the People's Committees of provinces shall
provide specific regulations on such depreciation period and rate. The
depreciation rate shall not be adjusted for more than or less than 20% of the
depreciation rate specified in Appendix 01 hereto.
b) In case of a fixed asset whose historical cost
is changed and which is upgraded and expanded according to the project approved
by a competent agency or person specified at Point b, Clause 1, Article 9 of
this Circular, the depreciation period of the fixed asset equals (=) the actual
period which the asset is used before change (+) the remaining depreciation
period of the fixed asset after upgradation and expansion. The remaining
depreciation period of the fixed asset after upgradation and expansion shall be
determined according to the following formula:
Remaining depreciation period of the fixed asset
after upgradation and expansion equals (=) (the historical cost of the fixed
asset after change minus (-) the accumulated depreciation, the depreciation
deducted of the fixed asset calculated as at December 31 of the year in which
the historical cost is changed) divided by (:) the annual depreciation expense
of the fixed asset from the year in which the historical cost is changed, which
is determined according to regulations in Point a, Clause 6 Article 14 of this
Circular.
c) In case of a fixed asset whose historical cost
is changed and which is partially lost or seriously damaged due to natural
disasters, force majeure events or other unexpected impacts specified at Point
dd, Clause 1, Article 9 of this Circular, the depreciation period of the fixed
asset equals (=) the actual period which the asset is used before change (+)
the remaining depreciation period of the fixed asset according to revaluation.
d) Regarding a fixed asset whose historical cost is
adjusted or changed according to regulations in Points a and d Clause 2 Article
6 and Points c and d Clause 1 Article 9 of this Circular:
d.2) If the historical cost of the fixed asset is
adjusted or changed after the asset has been fully depreciated, 01 year (the
year in which the historical cost of the fixed asset is adjusted or changed)
shall be added to the depreciation period in order to settle any increase or
decrease in asset's value due to change or adjustment of the historical cost.
2. Ministers, heads of central agencies and the
People's Committees of provinces shall elaborate the list, the depreciation
period and rate of intangible fixed assets (except for brands of public service
providers) under management by ministries, central agencies and localities
(according to Form No. 01 specified in Appendix 02 issued with this Circular).
The depreciation period of an intangible fixed
asset shall not be less than 04 years and more than 50 years.
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Article 14. Methods for calculating the
depreciation of fixed assets
1. The annual depreciation expense of each fixed
asset (except for cases specified in Clauses 2,3,4,5,6 and 7 of this Article)
shall be determined according to the following formula:
Annual
depreciation expense of each fixed asset
=
Historical cost of
the fixed asset
X
Depreciation rate
(% per year)
The depreciation rate shall be determined according
to regulations in Appendix No. 01 issued together with this Circular,
regulations of ministers, heads of central agencies, the provincial-level
People's Committees as prescribed at point a, Clauses 1 and 2, Article 13 of
this Circular.
2. In case of the transferred asset specified in
Clause 3 Article 6 and Clause 3 Article 7 of this Circular, the depreciation of
such fixed asset shall be determined as follows:
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a.1) With regard to cases specified at Point a.1
Clause 3 Article 6, Point a.1 Clause 3 Article 7 of this Circular, the annual
depreciation expense of the asset shall be determined according to the formula
specified in Clause 1 of this Article; the accumulated depreciation shall be
determined according to the formula specified in Clause 8 of this Article;
a.2) With regard to cases specified at Point a.2,
Point a.3 Clause 3 Article 6, Point a.2 Clause 3 Article 7 of this Circular,
the depreciation expense which is also the accumulated depreciation of the
asset, calculated until the year in which the decision on provision or transfer
of the asset is submitted to the competent agency or person shall be determined
according to the formula:
Depreciation expense of the fixed asset equals (=)
annual depreciation expense of the fixed asset, which is determined by the
formula according to regulations in Clause 1 of this Article multiplied by (X)
(depreciation period of the similar asset according to regulations (year) minus
(-) remaining depreciation period of the asset according to regulations (year)
or remaining depreciation period of the asset according to revaluation (year))
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clauses 1 and 2,
Article 13 of this Circular.
a.3) With regard to cases specified at Point a.4,
Clause 3 Article 6, Point a.3 Clause 3 Article 7 of this Circular, the
depreciation expense which is also accumulated depreciation of the asset,
calculated until the year in which the decision on provision or transfer of the
asset is submitted to the competent agency or person shall be determined
according to the formula:
Depreciation
expense of fixed asset
=
Historical cost of
the fixed asset
-
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a.4) If the year in which the fixed asset is
assigned or transferred is not the year in which the decision on assignment or
transfer of the fixed asset is submitted to a competent agency or person, the
agency, organization, unit or enterprise to which the asset is transferred or
is assigned to make a plan to handle the asset shall add to the asset receipt
record the depreciation accrued over the period from the year in which the
decision on provision or transfer of the fixed asset is submitted to a
competent agency or person to the year in which the asset is transferred or
assigned The depreciation expense of a year shall be determined by the formula
specified in Clause 1 of this Article.
b) The agency, organization, unit or enterprise
that receives the transferred or assigned asset shall calculate the
depreciation of such asset from the year in which the asset is received and put
into use. The annual depreciation expense of the asset shall be determined by
the formula specified in Clause 1 of this Article.
3. With regard to a fixed asset, which is detected as an extra asset specified in Clause
5 Article 6, Clause 5 Article 7 of this Circular, the annual depreciation
expense of the asset from the first year in which the asset is recorded in the
accounting book at the agency, organization, unit or enterprise shall be
determined according to formula specified in Clause 1 of this Article.
In the first year in which the asset is recorded in
the accounting book at the agency, organization, unit or enterprise (the year
in which the asset is detected as an extra asset), the depreciation expense of
the asset shall be determined as follows:
Depreciation expense of the first year in which the
asset is recorded in the accounting book equals (=) annual depreciation expense
of the fixed asset, which is determined by the formula specified in Clause 1 of
this Article multiplied by (X) (depreciation period of the similar asset
according to regulations (year) minus (-) remaining depreciation period of the
asset according to regulations (year) or remaining depreciation period of the
asset according to revaluation (year))
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clauses 1 and 2,
Article 13 of this Circular.
4. With regard to a fixed asset that the public
service provider can receive after expiration of the duration of joint venture
or association in the form of establishment of new legal entity, a fixed asset
contributed to joint venture or association by the public service provider and
a fixed asset formed in the process of joint venture or association without
establishment of new legal entity specified in Clauses 6 and 7 Article 6 of
this Circular, the annual depreciation expense of the fixed asset from the
first year in which the asset is recorded in the accounting book at the public
service provider (after the year in which the joint venture or association
expires) shall be determined by the formula specified in Clause 1 of this
Article.
In the first year in which the asset is recorded in
the accounting book at the agency, organization, unit or enterprise, the
depreciation expense of the asset shall be determined as follows:
Depreciation expense in the first year in which the
asset is recorded in the accounting book equals (=) annual depreciation expense
of the fixed asset, which is determined by the formula specified in Clause 1 of
this Article multiplied by (X) (the depreciation period of the similar asset
according to regulations (year) minus (–) the remaining depreciation period of
the asset revaluation (year)) minus (-) the accumulated depreciation, the
depreciation deducted of the fixed asset at the public service provider (if
any)
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5. In case of a fixed asset whose historical cost
is changed and which is upgraded and expanded according to the project approved
by a competent agency or person specified at Point b, Clause 1, Article 9 of
this Circular, the annual depreciation expense of the fixed asset from the year
its historical cost is changed shall be determined as follows:
Annual
depreciation expense of the fixed asset
=
Historical cost of
the fixed asset after change
X
Depreciation rate
of the similar asset (% per year)
The depreciation rate of the similar asset shall be
determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clauses 1 and 2,
Article 13 of this Circular.
6. With regard to a fixed asset whose historical
cost is adjusted or changed according to regulations in Points a and d Clause 2
Article 6 and Points c and d Clause 1 Article 9 of this Circular:
a) The annual depreciation expense of the fixed
asset from the year in which the historical cost is adjusted or changed shall
be determined as follows:
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=
Historical cost of
the fixed asset after adjustment or change
X
Depreciation rate
of the similar asset (% per year)
The depreciation rate of the similar asset shall be
determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clauses 1 and 2,
Article 13 of this Circular.
In the last year of the depreciation period of the
fixed asset, the depreciation expense is the residual value of the fixed asset
by December 31 of the preceding year.
b) If the historical cost the fixed asset is
adjusted or changed after the period of its depreciation period expired
according to regulations, the depreciation expense of the year in which the
historical cost is adjusted or changed shall be determined as follows:
Annual
depreciation expense of the year in which the historical cost is adjusted or
changed
=
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-
Depreciation
accrued up to the year preceding the year in which the historical cost is adjusted
or changed
In the next years, it is not required to calculate
the depreciation of fixed asset.
7. In case of a fixed asset whose historical cost
is changed and which is partially lost or seriously damaged due to natural
disasters, force majeure events or other unexpected impacts specified at Point
dd, Clause 1, Article 9 of this Circular, the annual depreciation expense of
the fixed asset from the year in which the historical cost is changed shall be
determined as follows:
Annual
depreciation expense of the fixed asset
=
Historical cost of
the fixed asset after change
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8. The accumulated depreciation, the depreciation
deducted of each fixed asset shall be determined as follows:
Depreciation
accrued up to December 31 of year (n)
=
Depreciation
accrued up to December 31 of year (n-1)
+
The depreciation
expense of the fixed asset of year (n), which is determined according to
regulations in this Circular
9. The depreciation value of the fixed asset of the
last year of the depreciation period is the difference between the
historical cost and the accumulated depreciation, the depreciation deducted of
such fixed asset determined according to regulations in Clause 8 of this
Article.
Article 15. Regulations on
depreciation of fixed assets at public service providers
1. Fixed assets specified in points a and b, Clause
2, Article 11 hereof and those specified in point c, Clause 2, Article 11
hereof shall be used for activities, including business, lease, joint venture
and association. The public service provider shall carry out management and
apply depreciation method according to regulations for enterprises. In case it
is necessary to adjust the depreciation rate of fixed assets, different from
the depreciation rate according to regulations for enterprises, the adjustment
shall be made as follows:
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b) With regard to the fixed asset specified in
point b, Clause 2, Article 11 hereof, if the depreciation according to the
depreciation rate under regulations for enterprises affects the operation of
the public service provider, such provider shall make a report about this case
and send it to the higher management agency (if any)so that such agency submits
such report to the Minister and Head of central agency and the People’s
Committee of province for decision on adjustment of depreciation rate of the
fixed asset. Such adjustment aims to
comply with the road map for calculating the public service prices promulgated
by a competent agency or competent person according to regulations.
c) With regard to the fixed asset specified in
point c, Clause 2, Article 11 hereof, which are used for activities, including
business, lease, joint venture and association, if the depreciation of such
asset is required to be carried out according to the depreciation rate of the
equivalent fixed asset specified in this Circular, the unit using the asset
shall send a report about this case to the higher management agency (if any) so
that this agency submit this report to the competent agency or the competent
person that approves the scheme for using the asset in the purposes, including
business, lease, joint venture and association. This agency or person shall
consider deciding the adjustment in depreciation rate of the fixed asset.
2. With regard to the fixed asset specified in
point c, Clause 2, Article 11 hereof which is recently used in activities,
including business, lease, joint venture and association and activities
according to functions and tasks of the public service provider:
a) The public service provider shall calculate and
determine the annual total depreciation value of the fixed asset according to
its depreciation rate specified in Article 14 of this Circular.
b) According to the useful life, use frequency or
amount of finished works, the public service provider shall calculate and
allocate the depreciation cost and the total depreciation cost in the year
which are determined in point a of this Clause in order to be included in
expenses on provision of public service, businesss, lease, joint venture or
association for the depreciation cost; and record the depreciation costs of
fixed assets.
3. With regard to a fixed asset which is the brand
of the public service provider and is used for joint venture or
association:
a) The value of the brand of the public service
provider used as capital contributed to joint venture and association shall be
determined according to the guidelines of Vietnamese Valuation Standard System,
the law on intellectual property and relevant laws, in order serve as the basis
for the competent agency or the competent person to approve the value of the
brand of such provider.
b) The value of the brand of the public service
provider contributed as capital to joint venture and association shall be
allocated into annual/monthly expense on joint venture or association and
determined as follows:
Value of the
brand of the public service provider, which is allocated into annual/monthly
expense on joint venture or association
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The value of the
brand of the public service provider contributed as capital to joint venture
or association, which is determined according to regulations in point a of
this Clause
Duration of
capital contribution to joint venture or association under the Scheme for
using assets for joint venture or association approved by the competent
agency or person (year/month)
4. Management and use of the amount from
depreciation and the value of the brand of the public service provider
allocated into expense on joint venture or association:
The depreciation expense of the fixed asset
specified in Clause 1, Clause 2 hereof and the value of the brand of the public
service provider allocated into expense on joint venture and association
specified in Clause 3 of this Article shall be added to the Fund for Developing
Professional Activities of the public service provider. With regard to the
fixed assets that are purchased using borrowed or mobilized capital, the depreciation
of these assets shall be used for repaying both interest and principal; the
remaining amount (if any) shall be added into the Fund for Developing
Professional Activities of the public service provider.
Article 16. Residual value of fixed assets
1. The residual value of a fixed asset for the
purpose of recording in the accounting book shall be determined as follows:
Residual value of
the fixed asset calculated as at December 31 of the year (n)
=
Historical cost in
the year (n) of the fixed asset
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Depreciation
accrued up to December 31 of year (n)
2. With regard to a fixed asset that has been
revaluated specified at Point a.4 Clause 3, Point a.3 Clause 5, Point a, Point
b Clause 6, Point b.1 Clause 7, Article 6, Point a .3 Clause 3, Point a.2
Clause 5 Article 7 and Clause 5 Article 10 of this Circular, the residual value
of the fixed asset upon revaluation is the residual value of such fixed asset
after revaluation.
Chapter IV
IMPLEMENTATION CLAUSE
Article 17. Transitional clauses
1. If a fixed asset has been recorded in the
accounting book of the agency, organization, unit or enterprise before the
effective date of this Circular and the depreciation period and rate of such
fixed asset specified in Appendix 01 issued together with this
Circular or regulations of ministers, heads of central agencies or
provincial-level People's Committees have been changed compared to regulations
in Appendix 01 issued together with Circular. 45/2018/TT-BTC dated May 7, 2018
of the Minister of Finance or regulations of Ministers, heads of central
agencies, provincial People's Committees before the effective date of this
Circular, from fiscal year 2023, the annual depreciation expense of the asset
shall be determined as follows:
Annual
depreciation expense of the fixed asset
=
Residual value of
the fixed asset calculated as at December 31, 2022 according to the
accounting book
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Where:
Remaining
depreciation period of the asset (year)
=
Remaining
depreciation period of the similar asset according to regulations (year)
-
the actual period
which the asset is used (year)
The depreciation period of the similar asset shall
be determined according to regulations in Appendix No. 01 issued together with
this Circular, regulations of ministers, heads of central agencies, the
provincial-level People's Committees as prescribed at point a, Clauses 1 and 2,
Article 13 of this Circular.
The depreciation expense of the fixed asset of the
last year of the depreciation period is the difference between the
historical cost and the accumulated depreciation of such fixed asset
If the asset has been fully depreciated but it
still has the residual value, the depreciation expense of 2023 is the residual
value of the fixed asset by December 31, 2022.
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3. With regard to a fixed asset which obtains the
decision to be provided and transferred before the effective date of Circular
No. 45/2018/TT-BTC dated May 07, 2018 of the Minister of Finance (July, 02
2018) and is not recorded into the accounting book before such provision or
transfer or is not revaluated during the process of provision or transfer, the
receiving agency, organization, unit or enterprise shall revaluate such asset
according to regulations in Clause 3, Article 6 of this Circular to record it
into the accounting book and determine the annual depreciation expense
according to regulations in Clause 2, Article 14, hereof to apply accounting to
the fixed asset from fiscal year 2023.
4. From 2018 to 2022, if the agency, organization,
unit or enterprise has not adjusted the value of land use right according to
regulations in Article 103 of the Law on Management and Use of Public Property,
the agency, organization, unit or enterprise shall adjust the value of land use
right for accounting from the fiscal year 2023.
Article 18. Effect
1. This Circular comes into effect from June 10,
2023 and is applied from the fiscal year 2023.
2. This Circular replaces the Circular No.
45/2018/TT-BTC dated May, 07 2018 of the Minister of Finance on guidance on
regime for management and calculation of the depreciation of fixed assets of
agencies, organizations or units and fixed assets handed to enterprises by the
State without calculation of the state capital portion of such enterprises.
3. During the implementation of this Circular, if a
relevant document that is referred to in this Circular is amended or replaced,
the later one shall prevail./.
4. Ministries, Heads of ministerial agencies and
Governmental agencies, central authorities, the People's Committees of
provinces and central-affiliated cities shall direct management and calculation
of the depreciation of fixed assets of agencies, organizations or units and
fixed assets handed to enterprises by the State without calculation of the
state capital portion of such enterprises according to regulations in this
Circular.
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APPENDIX 01
(Enclosed with
the Circular No. 23/2023/TT-BCT dated April 25, 2023 of the Minister of
Finance)
DEPRECIATION
PERIOD AND RATE OF TANGIBLE FIXED ASSETS
NO.
LIST OF ASSETS
DEPRECIATION
PERIOD (year)
DEPRECIATION
RATE (% per year)
I
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- Villas and construction works at special level
80
1,25
- Level I
80
...
...
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- Level II
50
2
- Level III
25
4
...
...
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15
6,67
II
Architectural structures
- Warehouses, storage tanks, parking lots, drying
grounds, sport playgrounds, swimming pools
20
...
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- Drilled wells, dug wells, fences
10
10
- Other architectural structures
10
10
III
...
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1
Official state cars
- Car with 4 to 5 seats
15
...
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- Car with 6 to 8 seats
15
6,67
2
Cars serving general purposes
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15
6,67
- Car with 6 to 8 seats
15
6,67
- Car with 9 to 12 seats
15
...
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- Car with 13 to 16 seats
15
6,67
3
Specialized cars
...
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15
6,67
- Fire fighting vehicles
15
6,67
- Prison vans:
15
...
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- Mechanical street sweeper
15
6,67
- Sprinkler truck
15
6,67
...
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15
6,67
- Compactor truck
15
6,67
- Mobile repair vehicle
15
...
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- Truck laboratory
15
6,67
- Mail truck
15
6,67
...
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15
6,67
- Rescue vehicle
15
6,67
- Crane truck
15
...
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- Dual-control car
15
6,67
- Traffic inspector vehicle
15
6,67
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15
6,67
- Outside broadcasting truck
15
6,67
- Different types of trucks
15
...
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- Van
15
6,67
- Car with more than 16 seats
15
6,67
...
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15
6,67
4
Cars serving state reception
15
6,67
5
Other cars
15
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IV
Other transport vehicles (other than cars)
1
Road vehicles
10
10
2
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10
10
3
Waterborne vehicles
- Cargo ship
10
...
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- Passenger ship
10
10
- Rescue craft
10
10
...
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10
10
- Inland waterway passenger vessel
10
10
- Different types of ferry-boats
10
...
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- Different types of canoes, motor-boats
10
10
- Different types of boats or ships
10
10
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10
10
4
Airborne vehicles
10
10
5
Other transport vehicles
10
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V
Machinery and equipment
1
Popular office machinery and equipment
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5
20
- Laptop (or similar electrical equipment)
5
20
- Printer
5
...
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- Fax machine
5
20
- File cabinet
5
20
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5
20
- Paper shredder
5
20
- Photocopier
5
...
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- Office chairs and desks for people in high
positions
8
12,5
- Tables and chairs for conference rooms
8
12,5
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8
12,5
- Air conditioner
8
12,5
- Electric fans
5
...
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- Heater
5
20
- Other popular office machinery and equipment
5
20
2
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a
Machinery and equipment serving general
activities of agencies, organizations or units that are similar to the
popular types
As specified
at point 1, Section V of this Appendix
As specified
at point 1, Section V of this Appendix
b
Other types of machinery and equipment
serving the general activities of agencies, organizations or units
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- Projector
5
20
- Water filter
5
20
...
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5
20
- Televisions, video devices and other digital
devices
5
20
- Sound recorder
5
...
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- Camera
5
20
- Audio device
5
20
...
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5
20
- Other communication devices
5
20
- Refrigerator, cooler
5
...
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- Washing machine
5
20
- Internet and media devices
5
20
...
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5
20
- Data storage
and management equipment
5
20
- Other transmission equipment
5
...
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- Surveillance camera
5
20
- Elevator
8
12,5
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8
12,5
- Safe
8
12,5
- Tables and chairs for meeting halls
8
...
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- File cabinet
or display cabinet
8
12,5
- Other
machinery and equipment serving general activities
8
12,5
3
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- Specialized machinery
and equipment that are similar to the popular types and serve general activities of agencies,
organizations or units
As specified at
point 1, point 2b Section V of this Appendix
As specified at
point 1, point 2b Section V of this Appendix
- Specialized machinery and equipment in fields
of culture and art (sound equipment, lighting, speakers, microphones, lights,
etc.)
5
...
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- Other specialized machinery and equipment
8
12,5
4
Other machinery and equipment:
8
12,5
VI
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1
Different types of animals
8
12,5
2
Perennial plant, perennial garden, (industrial
garden fruit garden and ornamental plants)
25
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3
Lawn, tree, ornamental plant, ornamental garden
8
12,5
VII
Other tangible fixed assets
8
12,5
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(Enclosed with
the Circular No. 23/2023/TT-BCT dated April 25, 2023 of the Minister of
Finance)
Form No. 01
Depreciation period and rate of
tangible fixed assets
Form No. 02
List of special fixed assets
Form No. 01
Ministry/province.......................
DEPRECIATION
PERIOD AND RATE OF TANGIBLE FIXED ASSETS
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LIST
DEPRECIATION
PERIOD (year)
DEPRECIATION
RATE (% per year)
I
...............................................
- A1 asset
...
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- B1 asset
- C1 asset
...
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...............................................
- A2 asset
- B2 asset
...
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- C2 asset
III
...............................................
...
...
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- A3 asset
- B3 asset
- C3 asset
...
...
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....
...............................................
Form No. 02
Ministry/province.......................
LIST OF SPECIAL
FIXED ASSETS
...
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LIST
I
...............................................
- A1 asset
- B1 asset
- C1 asset
...
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...............................................
- A2 asset
- B2 asset
- C2 asset
III
...............................................
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- A3 asset
- B3 asset
- C3 asset
....
...............................................