THE MINISTRY OF FINANCE

Circular No. 45/2013/TT-BTC of April 25, 2013, guiding the management, use and depreciation of fixed assets
Pursuant to November 29, 2005 Law No.60/2005/QH11 on Enterprises;
Pursuant to June 3, 2008 Law No.14/2008/QH12 on Enterprise Income Tax;
Pursuant to the Government’s Decree No. 124/2008/ND-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. 122/2011/ND-CP of December 27, 2011, amending and supplementing Decree No. 124/2008/ND-CP of December 11, 2008;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the director of the Department of Enterprise Finance;
The Minister of Finance promulgates the Circular to guide the management, use and depreciation of fixed assets.
Chapter I
GENERAL PROVISIONS
Article 1. Subjects and scope of application
1. This Circular applies to enterprises lawfully established and operating in Vietnam.
2. The calculation of depreciation under this Circular applies to each fixed asset of enterprises.
Article 2. Terms used in this Circular are construed as follows:
1. Tangible fixed assets are primary means of labor in physical forms, which satisfy the standards of tangible fixed assets, are involved in many business cycles but still retain their original physical forms, such as buildings, architectural objects, machinery, equipment, means of transport, etc.
2. Intangible fixed assets are assets not in physical forms, which represent an invested value and satisfy the standards of an intangible fixed asset, are involved in many business cycles, such as some costs directly related to used land; costs of issuance right, patent, copyright, etc.
3. Financial leased fixed assets are fixed assets which an enterprise leases from a financial leasing company. At the end of the leasing term, the lessee has the option to purchase the leased assets or continue the lease under the terms agreed in the financial leasing contract. The total rental for an asset type specified in the financial leasing contract must be at least equal to the value of that asset at the time of signing the contract.
All leased fixed assets that do not satisfy the above-mentioned requirements are considered operating leased fixed assets.
4. Similar fixed assets are those with similar utilities in the same business area and with equivalent values.
5. Historical cost of fixed assets
- Historical cost of tangible fixed assets includes all costs that an enterprise has to pay to have the tangible fixed assets by the time of putting the assets into a state ready for use.
- Historical cost of intangible assets includes all costs that an enterprise has to pay to have the intangible assets by the time of putting the assets into use as expected.
6. Reasonable value of fixed assets is the value of assets which can be exchanged between knowledgeable parties in the parity exchange.
7. Wear and tear of fixed assets is the incremental decrease in the use value and value of fixed assets due to involvement in production and business activities, natural erosion, technical advances, etc. during the operation of fixed assets.
8. Accumulated wear and tear of fixed assets is the total of worn-out value of fixed assets by the reporting time.