On 2016 October 13, Ministry of Finance issued Circular No. 147/2016/TT-BTC, amending and supplementing some certain articles of Circular No. 45/2013/TT-BTC on management, usage and depreciation of fixed asset. Accordingly, some notable changes are shown as follows:
- For building complex: the companies owns the building complex used for both of normal operation and leasing/sale purpose, such the companies are required to separate the areas for leasing/sale purpose, and not to record as the companies’ fixed asset and its depreciation. In the case of the impossibility of separation, the companies are not allowed to record the whole building complex as their fixed asset and claim the depreciation.
- For the investment project under the form of Build – Operation – Transfer (BOT): in Bussiness Cooperation Contract (B.C.C), the useful life of fixed assets is equal to the payback period of the investors. The proporation of depreciation is also corresponding to the proporation of annual revenue compared to payback period (the same to depreciation method based on quantity of products). Previously, the depreciation is at the commencement date of usage of the asset till the last day of the project. This circular will be effective from 28 November 2016 and applied for the fiscal year of 2016.
