Vietnam: Determining the primary price of tangible fixed assets from purchase (latest)

According to Article 4 of the Circular No. 45/2013/TT-BTC of the Ministry of Finance of Vietnam, the original cost of tangible fixed assets from purchase (new or old purchase): the purchase price actually paid plus (+) taxes (excluding refundable taxes) and directly related costs to be paid by the time putting the fixed assets into a state of ready for use such as interest incurred during the procurement of fixed assets; transportation costs, loading and unloading; costs of upgrade, installation, testing, registration fee and other directly related expenses.

Thus:

Determining the primary price of tangible fixed assets in other cases:

- In case the tangible fixed assets purchased by deferred payments or installment payments, the primary price of fixed assets is the purchase price paid at the time of purchase plus (+) taxes (excluding refundable taxes) and directly related costs to be paid by the time putting the fixed assets into a state of ready for use, such as the cost of shipping, loading and unloading, upgrade, installation, testing, registration fee (if any).

- In case of purchasing tangible fixed assets which are housing and structures associated with land use rights:

+ The value of land use rights must be separately identified and recognized as intangible assets if they meet the qualifications specified in the e Clause 2 of Article 4 of Circular No. 45/2013/TT-BTC.

+ The tangible fixed assets are buildings, structures, the primary price is the purchase price actually paid plus (+) the costs directly related to the introduction of tangible fixed assets into use.

- In case after purchasing tangible fixed assets which are housing and structures associated with land use rights, the enterprises shall remove or demolish for new construction:

+ The value of land use right must be separately identified and recorded as intangible fixed assets if meeting the standards under provision specified in Clause 2 Article 4 of Circular No. 45/2013/TT-BTC;

+ The primary price of fixed assets newly built is determined as settlement price of the construction as prescribed in the current Regulations on management of investment and construction. These properties removed or demolished are recorded under current regulations for disposal of fixed assets.

View more details at Circular No. 45/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from June 10, 2013.

Thu Ba

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