Circular 28/2017 / TT - BTC on the complement of circular 45/2013 / TT - BTC on recording and depreciation of multipurpose composite asset was issued.
Circular 28 excluded provisions that companies can depreciate only the
part related to combined assets for business, sale or lease purposes owned
by the company.
In the new circle, when a company has complex assets, it is necessary to
distinguish them according to purpose such as business, sale or lease.
Then the following provisions apply.
· For business and lease purposes objectives (excluding finance leases),
they are subject to depreciation as fixed assets.
· For sales purposes, it can not be subject to depreciation.
· If classification is not possible for each purpose, it is not recorded
as fixed assets and depreciation can not be made over the entire useful
life.
· For common parts of buildings, classify for each purpose and apportion
by proportion.
This circular will come into effect on May 27, 2017 and will be applied
in subsequent tax years after FY 2016.