| THE MINISTRY OF FINANCE ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No. 40/2010/TT-BTC | Hanoi, March 23, 2010 |
CIRCULAR
GUIDING THE DETERMINATION OF TAXABLE INCOMES FOR DIFFERENCES RESULTING FROM ASSET REVALUATION
THE MINISTRY OF FINANCE
Pursuant to June 3, 2008 Law No. 14/2008/ QHI2 on Enterprise Income Tax;
Pursuant to the Government's Decree No. 124/2008ND-CP of December 11, 2008, detailing and guiding a number of articles of the Law on Enterprise Income Tax;
Pursuant to the Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, power and organizational structure of the Ministry of Finance;
The Ministry of Finance specifically guides the determination of enterprise income tax-liable incomes for differences resulting from asset revaluation as follows:
Article 1. Subjects and scope of application
1. This Circular applies to organizations producing or trading in goods or providing services and earning taxable incomes under the Law on Enterprise Income Tax (below referred to as enterprises).
2. This Circular regulates differences resulting from the revaluation of assets of enterprises under regulations.
Article 2. Tax bases
1. For a wholly state-owned enterprise that revaluates its fixed assets under regulations for its transformation into a joint-stock company, the value of its fixed assets recorded for depreciation is the revaluated value and the positive difference between the revaluated value and the residual book value of the fixed assets shall be recorded as an increase of state capital portion at the enterprise.
