Hoàng Quyên
On April 25, 2023, the Minister of Finance of Vietnam promulgated Circular No.
23/2023/TT-BTC on guidelines on regulations on the management and calculation of the depreciation of fixed assets of agencies, organizations, and units and fixed assets assigned by the State to enterprises for management, excluding state capital components at enterprises.
Fixed asset identification standards
According to Article 3 of Circular No. 23/2023/TT-BTC, an asset is identified as a fixed asset when it meets the following requirements:
- The useful life is 1 year or more.
- The cost is 10.000.000 VND or higher.
Assets of public service providers will only be identified as fixed assets when they meet the following requirements:
- The useful life is 1 year or more.
- The requirement for costs of fixed assets applied to enterprises is met.
4 fixed assets not subject to depreciation calculation
According to Clause 3 Article 11 of Circular No. 23/2023/TT-BTC, the following 4 fixed assets are not subject to depreciation calculation:
- Fixed assets that are land use rights which must be determined to be included in the value of such assets as prescribed in Article 100 of Decree No. 151/2017/ND-CP.
- Specific fixed assets according to regulations
- Fixed assets that are still usable after their depreciation is being fully calculated or their costs are being completely depreciated.
- Fixed assets that are not usable though their depreciation is not fully calculated and their costs are not completely depreciated.
(Circular No. 23/2023/TT-BTC has removed rented fixed assets and fixed assets being kept on behalf of the State)
Circular no. 23/2023/TT-BTC of the Ministry of Finance of Vietnam comes into force as of June 10, 2023 and replaces Circular No. 45/2018/TT-BTC.
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