Cost allocation time for liquefied petroleum gas (LPG) cylinders valued at under VND 10 million/piece in Vietnam

Cost allocation time for LPG cylinders valued at under VND 10 million/piece in Vietnam (Internet image)

Article 5 of Circular 118/2010/TT-BTC stipulates that since LPG cylinders valued at under VND 10 million/piece is a special tool or device to be used for over one year, the cost allocation time for them in Vietnam is as follows:

- To have their cost accounted as reasonable expenses for determining enterprise income tax-liable incomes, in addition to required invoices and documents. LPG cylinders must retain their original design and have been inspected for technical safety by competent agencies with still valid inspection results.

- For (reusable and refillable) LPG cylinders with a volume of up to 300 ml/piece, their costs shall be allocated once in the fiscal year when they are put into use.

- For cylinders with a volume of over 300 ml/piece:

+ For metal (steel) and mixed (steel and composite) LPG cylinders, their costs shall be allocated between 5 and 10 years.

+ Particularly for non-metal (composite) LPG cylinders with high quality and long use time, their costs may be allocated for a longer time, but not more than 15 years.

The allocation of LPG cylinder costs under this Article applies only to owners of LPG cylinders. Bottled LPG gas traders shall register the cost allocation time for LPG cylinders with tax agencies directly managing them.

More details can be found in Circular 118/2010/TT-BTC, effective from September 24, 2010.

Nguyen Phu

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