Do Enterprises Need to Notify the Tax Department When Deciding on a Depreciation Method for Fixed Assets?

According to the provisions of Clause 3, Article 13 of Circular 45/2013/TT-BTC, which regulates the method of depreciation of fixed assets as follows:

The enterprise shall decide on the method and duration of depreciation of fixed assets (FAs) according to the provisions of this Circular and notify the directly managing tax authority before implementation.

Thus, if the enterprise decides on the method of depreciation, it must notify the directly managing tax authority before implementation.

Note: The method of depreciation applied to each FA that the enterprise has selected and notified to the directly managing tax authority must be consistently implemented throughout the usage period of the FA. In special cases where it is necessary to change the method of depreciation, the enterprise must clearly explain the change in the method of utilization of the FA to bring economic benefits to the enterprise. Each fixed asset is only permitted to change the method of depreciation once during its usage period and must notify the directly managing tax authority in writing.

Sincerely!