Circular No. 16/2005/TT-BTM

The Trade Ministry issued this Circular on August 16 to supplement its Circular No. 22/2000/TT-BTM of December 15, 2000, with respect to the calculation of accumulated depreciation value in the import of machinery, equipment, means of transport for creation of fixed assets of foreign-invested enterprises

The Trade Ministry issued this Circular on August 16 to supplement its Circular No. 22/2000/TT-BTM of December 15, 2000, with respect to the calculation of accumulated depreciation value in the import of machinery, equipment, means of transport for creation of fixed assets of foreign-invested enterprises.

Under this Circular, in cases where the import of machinery, equipment and means of transport has been stated in the economic and technical expositions, but the investment capital allocated for the import does not suit with the actual import, enterprises shall be allowed to use accumulated depreciation capital to calculate capital amounts used for the import.

For cases of importing machinery, equipment and means of transport for production expansion, enterprises may use accumulated depreciation capital to calculate capital amounts used for the import after getting certification of production expansion from investment-licensing agencies.

In cases where machinery and equipment are imported for technology replacement or renewal, enterprises may use accumulated depreciation capital for the import.

Enterprises, when importing machinery, equipment and means of transport for creation of fixed assets with accumulated depreciation capital, shall have to strictly comply with plans on the use of accumulated depreciation funds already registered with tax offices and must not calculate such amounts into the investment capital already committed.

(Source: Vietnam Law)