Circular 23/2023/TT-BTC: What are the useful life and depreciation rate of fixed assets in Vietnam?
What are the useful life and depreciation rate of fixed assets in Vietnam according to Circular 23/2023/TT-BTC?
On April 25, 2023, the Ministry of Finance issued Circular 23/2023/TT-BTC on managing and calculating the depreciation of fixed assets of agencies. Accordingly, the useful life and depreciation rate of fixed assets are as follows:
NO. | FIXED ASSETS | USEFUL LIFE (year) | DEPRECIATION RATE (%yr) |
I | Houses, constructions | ||
- Villas, special level constructions | 80 | 1,25 | |
- Level I | 80 | 1,25 | |
- Level II | 50 | 2 | |
- Level III | 25 | 4 | |
- Level IV | 15 | 6,67 | |
II | Architecture | ||
- Storage, tanks, parking lots, drying grounds, playgrounds, sports fields, swimming pools | 20 | 5 | |
- Boreholes, dug wells, fences | 10 | 10 | |
- Other architectural objects | 10 | 10 | |
III | Cars | ||
1 | Cars for work titles | ||
- 4 to 5 seater vehicles | 15 | 6,67 | |
- 6 to 8 seater vehicles | 15 | 6,67 | |
2 | Cars for general work | ||
- 4 to 5 seater vehicles | 15 | 6,67 | |
- 6 to 8 seater vehicles | 15 | 6,67 | |
- 9 to 12 seater vehicles | 15 | 6,67 | |
- 13 to 16 seater car | 15 | 6,67 | |
3 | Specialized cars | ||
- Ambulance | 15 | 6,67 | |
- Fire engines | 15 | 6,67 | |
- Convict transport vehicles | 15 | 6,67 | |
- Street sweeper | 15 | 6,67 | |
- Sprinkler vehicles | 15 | 6,67 | |
- Garbage trucks | 15 | 6,67 | |
- Garbage Truck | 15 | 6,67 | |
- Mobile repair vehicles | 15 | 6,67 | |
- Laboratory equipment vehicles | 15 | 6,67 | |
- Telegraph transceiver | 15 | 6,67 | |
- Electric repair vehicles | 15 | 6,67 | |
- Trailers, rescue and rescue vehicles | 15 | 6,67 | |
- Crane car | 15 | 6,67 | |
- Driving range | 15 | 6,67 | |
- Traffic Inspectorate | 15 | 6,67 | |
- Vehicles fitted with satellite receivers and transmitters | 15 | 6,67 | |
- Mobile Broadcasting Vehicles | 15 | 6,67 | |
- Trucks of all kinds | 15 | 6,67 | |
- Pickup truck | 15 | 6,67 | |
- Vehicles with over 16 seats of all kinds | 15 | 6,67 | |
- Other special-use vehicles | 15 | 6,67 | |
4 | Cars serving the state reception | 15 | 6,67 |
5 | Other cars | 15 | 6,67 |
Download the schedule of useful life and depreciation rate of fixed assets 2023.
Circular 23/2023/TT-BTC takes effect from June 10, 2023 and will be applied from fiscal year 2023.
What are the useful life and depreciation rate of fixed assets in Vietnam?
Vietnam: What is the scope of depreciation and amortization for fixed assets in Vietnam?
According to the provisions of Article 11 of Circular 23/2023/TT-BTC, existing fixed assets at agencies, organizations and units and fixed assets assigned by the State to enterprises for management must calculate depreciation, except for the following cases:
- Fixed assets at public non-business units subject to depreciation include:
+ Fixed assets at public non-business units to cover recurrent expenditures and investment expenses by themselves.
+ Fixed assets at public non-business units are subject to full depreciation of fixed assets in service prices as prescribed by law.
+ Fixed assets at public non-business units other than those specified at Points a and b of this Clause may be used for business, lease, joint venture or association activities without forming a new legal entity. according to regulations of the Law.
- Exception for depreciation or amortization for:
+ Fixed assets are land use rights in cases where the value of land use rights must be determined for calculation into the property value specified in Article 100 of Decree 151/2017/ND-CP.
+ Specific fixed assets specified at Point c, Clause 1, Article 4 of this Circular.
+ Fixed assets that have been fully depreciated or fully depreciated but are still usable (including fixed assets received by public non-business units after the term of joint venture or association expires) .
+ Fixed assets that have not been fully depreciated or fully depreciated but have been damaged and cannot be used.
- For fixed assets that are trademarks of public non-business units used in joint venture or association activities, the brand value of public non-business units to contribute capital to joint ventures or associations shall be allocated annual joint venture and association expenses as prescribed in Clause 3, Article 15 of this Circular.
What are the principles of depreciation and amortization of fixed assets in Vietnam?
The principles for calculating the depreciation of fixed assets are specified in Article 12 of Circular 23/2023/TT-BTC as follows:
- The calculation of depreciation of fixed assets is done once a year in December, before closing the accounting books.
- Fixed assets specified at Point c, Clause 2, Article 11 of this Circular shall calculate depreciation and amortization of fixed assets according to the provisions of Article 15 of this Circular.
- For fixed assets that agencies, organizations, units or enterprises receive from other agencies, organizations, units or enterprises under decisions of competent agencies or persons in the year, the calculation Depreciation in that year shall be carried out at the agency, organization, unit or enterprise receiving the property.
The principle of depreciation of fixed assets is as follows:
- The principles of depreciation of fixed assets for fixed assets specified at Points a and b, Clause 2, Article 11 of this Circular comply with regulations applicable to enterprises.
- For fixed assets specified at Point c, Clause 2, Article 11 of this Circular, the depreciation of fixed assets shall be made from the date the fixed assets are used for business, leasing, related purposes. business, association and stop depreciating fixed assets from the date of ending the use of fixed assets for business, leasing, joint venture or association purposes.
- Depreciation expenses of fixed assets must be allocated to each non-business activity, each business activity, lease, joint venture, association to account for the expenses of each respective activity.
LawNet