Vietnam: Private intermediate-level schools are eligible for accelerated depreciation of fixed assets

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Private intermediate-level schools are eligible for accelerated depreciation of fixed assets (Illustration)

According to Article 18 of the regulations issued with Circular 39/2012/TT-BGDDT, the assets of private vocational intermediate-level schools include:

- Assets invested by organizations and individuals;

- Assets increased due to the results of the school's activities;

- Assets donated, gifted, or sponsored.

Annually, private vocational intermediate-level schools have the responsibility to maintain and regularly repair their assets, create plans and allocate reasonable funds for additional investments, renew equipment, major repairs, new constructions, and gradually modernize technical infrastructure to serve training and scientific research. Annually, the school's assets must be inventoried and audited according to the provisions of law. Private vocational intermediate-level schools may apply rapid depreciation policies for fixed assets to recover capital, but the depreciation deduction must not exceed the maximum allowable limit prescribed by law for enterprises.

Particularly, the assets of private vocational intermediate-level schools formed from the contributions of organizations and individuals belong to private ownership. Shareholders own shares in the school corresponding to their contribution ratio. Assets donated, gifted, sponsored, or increased from the school's activities are jointly owned by the private vocational intermediate-level school. Private or jointly owned assets are protected by the State as per legal regulations. The representative of the jointly owned assets of the private vocational intermediate-level school is elected by the collective staff, core teachers, and contributing members, operating on the principles of collectivity and majority voting. This representative of the jointly owned assets has all the rights as other individual contributing shareholders, being entitled to attend and vote on all matters in the general shareholders' meeting.

For details, see Circular 39/2012/TT-BGDDT, effective from December 20, 2012.

Le Vy

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