Circular No. 162/2014/TT-BTC regulates the management system and depreciation of fixed assets in state agencies, public service units, and organizations using state budget funds.

CIRCULAR

Article 24provides for the management regime and depreciation of fixed assets in

 state agencies, public service units, and

 organizations using state budget funds

___________________

On the basis of Law on State Budget dated December 16, 2002;

On the basis of Law on Management and Use of State Assets dated June 3, 2008;

On the basis of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Assets;

On the basis of Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Agency,

The Minister of Finance issues the Circular providing for the management regime and depreciation of fixed assets in state agencies, public service units, and organizations using state budget funds.

PART I

GENERAL PROVISIONS

Article Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

1. This Circular provides for the management regime and depreciation of fixed assets in state agencies, public service units, political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations using state budget funds.

2. Based on the provisions of this Circular, the Minister of National Defense and the Minister of Public Security shall specify in detail the management regime and depreciation of fixed assets in people's armed forces units as appropriate.

Article 2. Applicability

The management and depreciation of fixed assets provided for in this Circular apply to state agencies, public service units, political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations using state budget funds (hereinafter referred to collectively as agencies, organizations, and units).

Chapter II

PROVISIONS ON FIXED ASSET MANAGEMENT

Article 3. Provisions on criteria for identifying fixed assets

1. Criteria for identifying tangible fixed assets

Tangible fixed assets are those with physical form, having an independent structure or being a system consisting of multiple separate parts interconnected to perform one or several specific functions, satisfying both of the following criteria:

a) Having a useful life of one year or longer;

b) Having an original cost of ten million dong or more.

2. Criteria for identifying intangible fixed assets

Intangible fixed assets are those without physical form that agencies, organizations, and units have invested costs to establish such as: land use rights; application software; intellectual property rights as prescribed in the Intellectual Property Law, satisfying both of the criteria set forth in Clause 1 of this Article.

Article 4. Special Fixed Assets

1. Those assets (excluding buildings and structures) with a book value from VND 5 million to less than VND 10 million and a useful life of more than one year are defined as special fixed assets.

2. Assets that are easily damaged or broken (such as glass, pottery, porcelain, etc.) used for scientific research and experiments with a book value of VND 10 million or more are defined as special fixed assets.

3. Based on the provisions of Clause 1 and Clause 2 of this Article and the actual characteristics of the assets used in the industry or field; the Minister, Head of a ministry equivalent to a ministry, agency under the Government, other central-level agencies, People's Committees of provinces and centrally-administered cities shall issue a list of special fixed assets (according to Model 3 attached to this Circular) within their jurisdiction to ensure uniform management.

Article 5. Special Fixed Assets

1. Assets whose actual value cannot be assessed but which require strict physical management such as antiques; exhibits displayed in museums; mausoleums; historical sites classified as such, etc., are defined as special fixed assets.

2. Based on actual conditions and management requirements for the assets specified in Clause 1 of this Article; the Minister, Head of a ministry equivalent to a ministry, agency under the Government, other central-level agencies, People's Committees of provinces and centrally-administered cities shall issue a list and nominal value of special fixed assets (according to Model 4 attached to this Circular) within their jurisdiction to ensure uniform management.

3. Book value of special fixed assets: Determined according to the nominal value as prescribed in Clause 2 of this Article to record in accounting books.

Article 6. Classification of Fixed Assets

1. Classification according to the nature and characteristics of assets, including:

a) Tangible fixed assets

- Type 1: Buildings, including: Office buildings, warehouses, conference halls, clubhouses, cultural houses, sports training and competition venues, museum preservation houses, kindergartens, classrooms, lecture halls, dormitories, clinics, convalescent homes, guesthouses, residences, public service buildings, public utility buildings, other buildings.

- Type 2: Architectural structures, including: Storage tanks, reservoirs, parking lots, drying yards, playgrounds, sports fields, stadiums, swimming pools, shooting ranges, dams, dykes, culverts, canals, irrigation channels, ports, shipyards, drilled wells, dug wells, fences, other architectural structures.

- Type 3: Transportation equipment, including:

+ Road transportation equipment (cars, motorcycles, bicycles, other road transportation equipment);

+ Waterway transportation equipment, including: Cargo ships; passenger ships; water patrol, rescue, and salvage vessels; inland cargo ships; inland passenger ships; various types of ferries; various types of motor boats and canoes; various types of junks and boats; other waterway transportation equipment.

+ Air transportation equipment (aircraft);

+ Rail transportation equipment;

+ Other transportation equipment.

- Type 4: Office machinery and equipment, including: Desktop computers; laptop computers; various types of printers; various types of projectors; fax machines; document shredders; photocopiers; various types of water filtration systems; dehumidifiers and vacuum cleaners; televisions, video players, other digital signal receivers; tape recorders; cameras; various types of audio equipment; telephone switchboards, fixed telephones, walkie-talkies, mobile phones; other communication equipment; refrigerators, air coolers; washing machines; air conditioners; water pumps; safes; office desk and chair sets; reception desk and chair sets; meeting room and auditorium desks and chairs; filing cabinets and shelves for storing documents or displaying artifacts; network and communication equipment; various types of office electronic equipment; electronic devices for data management and storage; other office equipment.

- Type 5: Transmission equipment, including: Gas transmission equipment, electrical transmission equipment, water transmission equipment, other types of transmission equipment.

- Type 6: Power machinery and equipment.

- Type 7: Specialized machinery and equipment.

- Type 8: Measuring and testing equipment.

- Type 9: Long-lived plants and working animals and/or those producing products.

- Type 10: Other tangible fixed assets.

b) Intangible fixed assets

- Type 1: Land use rights.

- Type 2: Copyrights.

- Type 3: Industrial property rights.

- Type 4: Rights over plant varieties.

- Type 5: Application software.

- Type 6: Other intangible fixed assets.

2. Classification according to the source of formation of assets, including:

a) Fixed assets formed through purchase;

b) Fixed assets formed through construction investment;

c) Fixed assets transferred in.

d) Fixed assets donated.

đ) Fixed assets formed from other sources.

3. The list of tangible fixed assets at Appendix 1 issued together with this Circular.

Article 7. Subjects Recorded in Fixed Asset Accounting Books

1. Assets used independently and identified as a single subject for fixed asset accounting books.

2. A system consisting of multiple individual asset parts interconnected to perform one or several specific functions, such that the absence of any part renders the entire system non-functional, shall be determined as a subject recorded in fixed asset accounting books.

3. A system comprising multiple individual asset parts interconnected, where each component has a different usage period and independent operational function, and requires separate management of each asset part, each part shall be determined as a subject recorded in fixed asset accounting books.

4. Working animals and/or those producing products, each animal valued at 10 million VND or more, shall be determined as a subject recorded in fixed asset accounting books.

5. Independent land plots containing orchards, valued at 10 million VND or more (excluding land use rights value); or individual long-lived trees, each valued at 10 million VND or more, shall be determined as a subject recorded in fixed asset accounting books.

Article 8. Determination of the Original Cost of Fixed Assets

The determination of the original cost of fixed assets as stipulated in Articles 3 and 4 of this Circular is as follows:

1. Tangible Fixed Assets

a) The original cost of tangible fixed assets formed from purchases shall be determined by the following formula:

b) The original cost of tangible fixed assets formed from construction investment is the settled value approved by the competent authority in accordance with current laws on construction investment.

- In cases where the asset has been put into use (after completion of construction investment) but has not yet been settled and approved by the competent state agency, the entity shall record and account for the fixed asset from the date of the Acceptance Certificate. The recorded original cost is a provisional cost. In this case, the provisional cost shall be selected in the following order of priority:

+ Proposed settlement value;

+ Value determined by the A-B Acceptance Certificate;

+ Approved project budget estimate value.

- Upon approval of the settlement by the competent authority, the entity shall adjust the provisional cost recorded in the accounting books to the approved settlement value.

c) The original cost of tangible fixed assets transferred in shall be determined as follows:

d) The original cost of tangible fixed assets received as gifts shall be determined as follows:

2. Intangible Fixed Assets

a) The original cost of intangible fixed assets being land use rights is as follows:

For land granted by the State with payment of land use fee; land received through lawful transfer of land use rights; land leased with payment of lease fee for the entire lease period, the original cost shall be the land use fee paid to obtain the land grant with payment of land use fee, or the amount paid when receiving lawful transfer of land use rights, or the total lease fee paid for the entire lease period plus (+) taxes, fees, and charges (excluding taxes that are refundable).

For land granted by the State without payment of land use fee, the original cost shall be determined according to the Government's regulations on determining the value of land use rights to be included in the asset value of organizations granted land without payment of land use fee, plus (+) taxes, fees, and charges (excluding taxes that are refundable).

b) The original cost of intangible fixed assets (copyrights, industrial property rights, plant variety rights under the Intellectual Property Law) is the total costs incurred by the entity to acquire copyrights, industrial property rights, and plant variety rights as stipulated by the Intellectual Property Law.

c) The original cost of intangible fixed assets (application software) is the total costs incurred by the entity to acquire application software.

d) The original cost of other intangible fixed assets is the total costs incurred by the entity to acquire such intangible fixed assets.

Article 9. Changing the Original Cost of Fixed Assets

1. The original cost of fixed assets may be changed in the following cases:

a) Reassessing the value of fixed assets according to the decision of a competent state agency;

b) Implementing upgrades to fixed assets according to projects approved by competent state agencies;

c) Dismantling one or several parts of fixed assets.

2. When changes in the original cost of fixed assets occur, the agency, organization, or unit must prepare a Record detailing the basis for changing the original cost; simultaneously re-determine the original cost indicators, residual value, and accumulated depreciation of the fixed assets to adjust accounting records and perform accounting calculations in accordance with current regulations.

Article 10. Management of Fixed Assets

1. All existing fixed assets at agencies, organizations, and units must be strictly managed in terms of physical items and value in accordance with the legal provisions on management and use of state assets.

2. Agencies, organizations, and units have the responsibility to establish fixed asset cards, perform accounting for all existing fixed assets of the unit in accordance with the current accounting system; conduct annual inventory checks on existing fixed assets; report to the higher-level financial authority to unify the adjustment of data between the inventory results and accounting records (if necessary); report on the management and use of assets in accordance with legal provisions on management and use of state assets.

3. Fixed assets that have been fully depreciated but are still usable must continue to be managed in accordance with the law.

Chapter III

PROVISIONS ON THE CALCULATION OF DEPRECIATION OF FIXED ASSETS

Article 11. Principles for Calculating Depreciation of Fixed Assets

1. The following types of fixed assets do not need to be calculated for depreciation:

a) Fixed assets being land use rights;

b) Special fixed assets as specified in Article 5 of this Circular;

c) Fixed assets currently leased for use;

d) Fixed assets kept, stored, or preserved for the State;

đ) Fixed assets that have been fully depreciated but are still usable;

e) Fixed assets that have not been fully depreciated but are no longer usable.

2. The calculation of depreciation of fixed assets is carried out once a year in December, before closing the accounting books or at irregular intervals. The scope of fixed assets subject to depreciation includes all existing fixed assets (excluding those specified in Clause 1 of this Article) up to December 31 of the year in which depreciation is calculated.

For fixed assets participating entirely in production, business service activities, or used both for production, business service activities and functional tasks of the unit, the calculation of depreciation and provision for depreciation of fixed assets shall be implemented in accordance with Article 14 of this Circular.

3. In cases of transfer, division, merger, dissolution of agencies, organizations, or units, or comprehensive inventory and revaluation of fixed assets according to the State's policy, depreciation of fixed assets is calculated at the time of decision by the competent state agency.

Article 12. Determination of Useful Life and Depreciation Rate of Fixed Assets

1. The useful life and depreciation rate of tangible fixed assets are implemented in accordance with Appendix 1 issued together with this Circular.

If it is necessary to specify the useful life of motor vehicles as 10 years to suit the actual operating conditions of motor vehicles in difficult areas, then the Minister, Head of a Ministry equivalent to a ministry, or other central agency shall specify this after reaching a consensus with the Ministry of Finance; the People's Committee of provinces and centrally-administered cities shall specify this after reaching a consensus with the Standing Committee of the People's Council at the same level.

2. The Minister, Head of a Ministry equivalent to a ministry, or other central agency, the People's Committee of provinces and centrally-administered cities shall issue regulations:

a) List, useful life, and depreciation rate of intangible fixed assets within the management scope of the Ministry, sector, or locality (according to the Model in Appendix 2 issued together with this Circular).

The minimum useful life of an intangible fixed asset shall not be less than 4 years and shall not exceed 50 years.

If it is necessary to specify the useful life of intangible fixed assets under 4 years to suit the actual situation, then the Minister, Head of a Ministry equivalent to a ministry, or other central agency, the People's Committee of provinces and centrally-administered cities shall specify this after reaching a consensus with the relevant specialized management ministry.

b) Useful life and depreciation rate of special fixed assets within the management scope of the Ministry, sector, or locality (according to the Model in Appendix 3 issued together with this Circular).

Article 13. Method for Calculating Depreciation of Fixed Assets

1. The annual depreciation amount of each fixed asset shall be calculated according to the following formula:

Annually, based on determining the increase and decrease in depreciation occurring during the year, the agency, organization, or unit calculates the total depreciation of all fixed assets at the agency, organization, or unit for that year according to the formula:

2. For fixed assets whose original cost has changed, the agency, organization, or unit re-determines the original cost indicators, remaining value, and cumulative depreciation of those fixed assets to record in the accounting books. Based on the rate of depreciation of tangible fixed assets prescribed in Appendix No. 1 issued together with this Circular, the rate of depreciation of intangible fixed assets, and the rate of depreciation of special fixed assets as stipulated in Article 12 of this Circular, continue to calculate depreciation for the remaining years.

3. The amount of depreciation of fixed assets for the final year within the useful life of the fixed asset is determined as the difference between the original cost and the cumulative depreciation already implemented of that fixed asset.

Article 14. Provisions on Allocating Depreciation of Fixed Assets

1. Fixed assets of agencies, organizations, or units not participating in production, business service activities, joint ventures, or joint operations shall be subject to depreciation calculation according to this Circular; no allocation of depreciation.

2. All fixed assets of units used in production, business service activities, joint ventures, or joint operations without forming a new legal entity or leasing as prescribed by law must allocate depreciation of fixed assets. The allocation of depreciation of fixed assets is carried out as follows:

a) For fixed assets fully utilized in production, business service activities, joint ventures, or joint operations, the unit implements management, usage, and allocation of depreciation according to regulations applicable to enterprises. In cases where it is necessary to allocate depreciation according to the corresponding rate of depreciation of fixed assets prescribed in this Circular, the unit using the asset reports to the superior management authority for consideration and decision.

The depreciation rate and the amount of depreciation in the year (according to the Model in Appendix No. 5 issued together with this Circular), the unit sends to the direct tax management authority before January 1st each year for monitoring and management.

b) For fixed assets partially used in production, business service activities, joint ventures, or joint operations and partially used in activities according to the functions and tasks of the unit, the following procedures apply:

- The unit calculates and determines the total depreciation value in the year of fixed assets partially used in production, business service activities, joint ventures, or joint operations and partially used in activities according to the functions and tasks based on the rate of depreciation of fixed assets prescribed in this Circular.

- Based on the situation of asset usage (usage time, frequency of use, or volume of work completed), the unit calculates and allocates the amount of depreciation and depreciation within the total depreciation value already determined. Prepare and send information about the amount of depreciation and depreciation of assets in the year (according to the Model in Appendix No. 5 issued together with this Circular) to the direct tax management authority. The submission deadline is before January 1st each year for monitoring and management.

- The unit implements the allocation of registered depreciation amounts to be recorded in the accounting for service provision costs, production, business service costs, and leasing expenses appropriately; records the depreciation of fixed assets in the accounting for the registered depreciation amount.

Management and use of the allocated depreciation funds

The amount of depreciation of fixed assets purchased from state budget sources or with a state budget origin, the unit may use to supplement the Development Fund for Public Services.

The amount of depreciation of fixed assets purchased from raised capital, the unit may use to repay principal and interest; the remainder is used to supplement the Development Fund for Public Services.

Chapter IV

IMPLEMENTATION

Article 15. Transitional Provisions

1. The calculation of depreciation for fixed assets in 2014 shall be carried out by agencies, organizations, and units in accordance with the regulations on management and calculation of depreciation of fixed assets in state agencies, public service units, and organizations using state budget funds issued together with Decision No. 32/2008/QĐ-BTC dated May 29, 2008, of the Minister of Finance.

2. The calculation of depreciation for fixed assets from 2015 onwards shall be based on the original cost and residual value of fixed assets as of the end of 2014, and shall be calculated according to the depreciation rate specified in this Circular.

3. Based on the criteria for identifying fixed assets stipulated in this Circular, agencies, organizations, and units shall review and remove assets that do not meet the criteria from the list of fixed assets for tracking, management, and use as durable tools and equipment.

Article 16. Effective Date

1. This Circular takes effect from January 1, 2015.

2. This Circular replaces Decision No. 32/2008/QĐ-BTC dated May 29, 2008, of the Minister of Finance regarding the issuance of the regulations on management and calculation of depreciation of fixed assets in state agencies, public service units, and organizations using state budget funds.

3. During implementation, if there are any difficulties, agencies and units are requested to promptly report them to the Ministry of Finance for coordination and resolution./.