Official letter 2562/CTHNA-TTHT about depreciation costs of fixed assets:
Based on the above provisions, depreciation costs of fixed assets are included in deductible expenses when determining taxable income for corporate income tax as guided as follows: For factories in operation that are then temporarily suspended for repair and continue to be used after repair: In case workshop 01 of the Company is being used for production and business activities, it must be temporarily suspended for repair, complete the repair process and put into operation (the suspension period for repair does not exceed 09 months), then depreciation costs during the suspension period for repair of workshop 01 are deducted from expenses when determining taxable income for corporate income tax if the above expenses meet all the conditions specified in Clause 1, Article 6 of Circular 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance (amended and supplemented in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance).
For the case of repairing a factory that is not in use, and then being repaired and then not in use again (workshop No. 02 and workshop No. 03): Workshops No. 2 and 3 of the Company will stop operating from November 2021; The Company will carry out repairs and maintenance of the above two workshops from January 2024 to August 2024 (8 months). In case after repair, the above two workshops continue to not be put into use, the depreciation cost of fixed assets of the two workshops during the period of temporary suspension of operation (including repair time) when determining taxable income for CIT due to not serving the production and business activities of the Company, according to the provisions of Article 6 of Circular 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance (amended and supplemented in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance).
