Management Rights, Utilization, and Depreciation of Fixed Assets in Registration

According to Circular 49, the management, use, and depreciation of fixed assets in business activities of the Vietnam Register shall be carried out in accordance with Article 25 Law on Management and Utilization of State Capital Invested in Production and Business Activities at Enterprises. Specifically:

- The Vietnam Register is responsible for developing, promulgating, and implementing Regulations on the management and use of fixed assets of the Vietnam Register;- Depending on the management requirements for each type of fixed asset, the asset management regulation issued by the Vietnam Register must clearly stipulate the coordination between departments and the responsibilities of each department and individual involved in monitoring and managing the use of assets of the Vietnam Register.

Additionally, the Vietnam Register has the right to lease, pledge, and mortgage fixed assets as prescribed in Article 26 Decree 91/2015/ND-CP, specifically:

- The Director of the Vietnam Register decides on asset lease contracts with a value less than 50% of the charter capital recorded in the nearest quarterly or annual financial statement of the Vietnam Register at the time of the decision to lease the assets, but the remaining value of the leased assets shall not exceed the capital of a group B project as specified in the Public Investment Law;- The authority to decide on the use of enterprise assets for mortgage and pledge to secure loans shall be in accordance with Article 23 Law on Management and Utilization of State Capital Invested in Production and Business Activities at Enterprises;- The use of assets for leasing, mortgaging, and pledging must strictly comply with the provisions of the Civil Code and other relevant laws.

Regarding the depreciation of fixed assets: The Vietnam Register is allowed to depreciate assets according to the guidelines issued by the Ministry of Finance, which stipulate the depreciation of fixed assets of enterprises.

More details can be found in Circular 49/2018/TT-BTC effective from July 6, 2018.

- Thanh Lam -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE