Circular No. 24/2025/TT-BTC guides the calculation of depreciation and the allocation of depreciation expenses for water conservancy infrastructure assets.

 

CIRCULAR

Guidelines on the calculation of depreciation and provision for depreciation of water conservancy infrastructure assets

On the basis of Law on Management and Use of State Assets dated June 21, 2017;

On the basis of Law amending and supplementing certain articles of the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Public Asset Management and Usage Law, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violation Handling Law dated November 29, 2024;

Decree No. Decision No. 08/2025/NĐ-CP of January 9, 2025 by the Government on the management, usage, and exploitation of water conservancy infrastructure assets;

Decree No. Decision No. 29/2025/NĐ-CP of February 24, 2025 by the Government on the functions, tasks, authorities, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the State Asset Management Department;

The Minister of Finance issues this Circular to guide the calculation of depreciation and provision for depreciation of water conservancy infrastructure assets.

PART I
SCOPE OF REGULATION, APPLICABLE OBJECTS

Article 1. Scope of Regulation

Article 1. This Circular guides the calculation of depreciation and provision for depreciation for water conservancy infrastructure assets, which are fixed assets as defined in Clause 2, Article 3 of this Circular (hereinafter referred to as water conservancy infrastructure assets), invested in and managed by the State and transferred to agencies, units, and enterprises as defined in Clause 1, Article 2 of this Circular for management.

Article 2. For water conservancy infrastructure assets managed by enterprises under the form of state capital participation in enterprises, the management and provision for depreciation shall be carried out according to the legal regulations on the management, usage, and provision for depreciation of fixed assets applicable to enterprises; such cases are not within the scope of adjustment of this Circular.

Article 3. For land area attached to water conservancy works, only the asset inventory will be monitored, without accounting for the value of the assets.

Article 4. This Circular does not apply to cases stipulated in Clause 2, Article 1 of Decree No. 08/2025/NĐ-CP dated January 9, 2025 by the Government on the management, usage, and exploitation of water conservancy infrastructure assets.

Article 2. Applicability

Article 5. The calculation of depreciation and provision for depreciation of water conservancy infrastructure assets as prescribed in this Circular applies to agencies, units, and enterprises entrusted with the management and exploitation of water conservancy infrastructure assets including:

a) Public service units;

b) Specialized agencies on water conservancy;

c) Enterprises holding 100% state capital contribution entrusted with the management and exploitation of water conservancy infrastructure assets under the form of non-state capital participation in enterprises.

Article 6. Other relevant agencies and units related to the calculation of depreciation and provision for depreciation of water conservancy infrastructure assets.

Chapter II
STANDARDS FOR IDENTIFICATION AND PRINCIPLES OF MONITORING WATER CONSERVANCY INFRASTRUCTURE ASSETS

Article 3. Standards for identifying water conservancy infrastructure assets

Clause 1. Identification of water conservancy infrastructure assets

a) A water conservancy infrastructure asset with independent structure is identified as a single asset;

b) A system of water conservancy infrastructure assets consisting of multiple separate parts interconnected to perform one or several specific functions, where the absence of any part renders the entire system inoperable, is identified as a single asset.

In the case where a water conservancy infrastructure asset system is assigned to multiple agencies, units, and enterprises for management and exploitation, the portion of the asset assigned to each agency, unit, and enterprise is considered a single asset.

Clause 2. Water conservancy infrastructure assets as defined in Clause 1 of this Article are identified as fixed assets when they simultaneously meet the following two standards:

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

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

Article 4. Principles for Monitoring Water Infrastructure Assets

1. Each water infrastructure asset defined as fixed assets under Article 3 of this Circular shall be a separate accounting entry. Accounting for water infrastructure assets must fully reflect information on original cost, remaining value, depreciation, or amortization of the asset.

2. Agencies, units, and enterprises entrusted with managing and operating water infrastructure assets shall be responsible for:

a) Implementing accounting entries for all water infrastructure assets they manage in accordance with the law on accounting;

b) Conducting regular annual inventory checks; implementing comprehensive inventory checks as decided by competent authorities; adjusting accounting records if discrepancies arise during inventory checks to ensure that accounting records match actual figures;

c) Reporting declarations and reporting on the management and use of water infrastructure assets in accordance with Article 26 of Decree No. 08/2025/NĐ-CP and relevant laws.

3. For water infrastructure assets that are no longer needed but have not yet been fully depreciated or amortized according to regulations, the agencies, units, and enterprises entrusted with managing and operating such assets shall continue to manage, monitor, and preserve them in accordance with regulations and calculate depreciation and amortization as stipulated in this Circular until they are disposed of according to regulations.

4. For water infrastructure assets that have been fully depreciated or amortized but are still usable, the agencies, units, and enterprises entrusted with managing and operating such assets shall continue to manage, use, monitor, and preserve them in accordance with regulations without having to calculate further depreciation or amortization. In cases where water infrastructure assets have been fully depreciated or amortized but subsequently require a change in original cost as stipulated in Clause 5, Article 5 of this Circular, depreciation and amortization must be calculated according to regulations for the remaining period of use (if any) following the change in original cost.

5. In cases where the right to operate water infrastructure assets is leased out, the agencies, units entrusted with managing and operating such assets shall continue to manage, monitor, and calculate depreciation and amortization of the assets in accordance with this Circular during the lease period.

6. In cases where the right to operate water infrastructure assets is transferred for a limited time, during the transfer period, the agencies, units entrusted with managing and operating such assets (the transferring party):

a) Shall be responsible for monitoring the performance of the transferee's obligations in accordance with the law and the limited-term transfer contract for the right to operate the assets; b) Shall not calculate depreciation or amortization as stipulated in this Circular but must continue to monitor the original cost of the asset recorded at the time of transfer on the accounting books and disclose it in the financial statement notes in accordance with current accounting regulations;

c) Upon expiration of the limited-term transfer period for the right to operate water infrastructure assets, the agencies, units entrusted with managing and operating such assets shall take back the assets in accordance with the limited-term transfer contract and applicable laws, re-determine the original cost and remaining value of the assets to manage, use, calculate depreciation, and amortize in accordance with Decree No. 08/2025/NĐ-CP and this Circular.

ORIGINAL COST, DEPRECIATION, AMORTIZATION, AND REMAINING VALUE OF WATER INFRASTRUCTURE ASSETS

c) When the term for transferring the right to exploit infrastructure waterworks assets expires, the agency or unit entrusted with managing and exploiting the assets shall take back the assets according to the Term Transfer Contract for the Right to Exploit Assets and the provisions of the law, and shall re-determine the original cost, residual value of the assets to manage, use, calculate depreciation, and allocate amortization expenses in accordance with Decree No. 08/2025/NĐ-CP and this Circular.

Chapter III
ORIGINAL COST, DEPRECIATION, AMORTIZATION, AND RESIDUAL VALUE OF INFRASTRUCTURE WATERWORKS ASSETS

Article 5. Determining the Original Value of Water Infrastructure Assets

1. The original value of water infrastructure assets that were put into use before the effective date of Decree No. 08/2025/NĐ-CP shall be determined as follows:

a) For water infrastructure assets that are being monitored and recorded in accounting books, the original value of the asset is the value currently being monitored and recorded in the accounting books;

b) For water infrastructure assets that have not been monitored and recorded in accounting books:

b1) In cases where the water infrastructure assets have been settled according to the provisions of the law, the settlement value stated in the documentation shall be used to determine the accounting book value;

b2) In cases where there is no information on the original value, residual value, or settlement value of the water infrastructure assets, the price of a model project decided by the Minister of Agriculture and Rural Development (if available) shall be used to determine the original value of equivalent water infrastructure assets;

In cases where the price of a model project is used to determine the original value of equivalent water infrastructure assets, this original value shall only be used for monitoring, recording in accounting books, and reporting asset declarations to be registered in the National Database of Water Infrastructure Assets;

b3) In cases where there is no basis to determine the original value of water infrastructure assets according to points b1 and b2 of this clause but there is a basis to determine the time when the asset was put into use, the new purchase price of similar assets or the new construction value (construction norms) of assets with equivalent grade, category, and capacity formed through construction or procurement at the time of putting into use, the original value of the asset shall be determined as follows:

Where:

Area, volume of construction/quantity/other criteria (if any) of the asset

Value of other structures attached to the work/sub-work item determined according to the regulations of the specialized management ministry (or specific regulations of the locality where the asset is located) at the time of putting the asset into use

Re-evaluated value of the asset

Depreciation period of the asset according to Article 8 of this Circular (years)

Remaining depreciation period of the asset (years)

Value stated in the A-B Acceptance Certificate (total value of contract settlement tables between the investor and the contractor);

Approved or most recently adjusted budget estimate value (in cases where the project budget estimate has been adjusted);

Approved or most recently adjusted total investment ceiling value (in cases where the total investment ceiling has been adjusted).

When the settlement value is approved by the competent authority, the agency, entity, or enterprise entrusted with managing the water infrastructure assets shall adjust the recorded value in the accounting books according to the approved settlement value to adjust the accounting books and perform asset accounting according to the law on accounting.

Value determined according to the A-B Acceptance Certificate (Total value of all settlement contract valuation tables between the project owner and the contractor);

Approved or most recently adjusted budget estimate (in cases where the project's budget estimate has been adjusted);

Approved or most recently adjusted total investment ceiling (in cases where the total investment ceiling has been adjusted).

Upon approval of the final settlement by the competent authority, the agency, unit, or enterprise entrusted with managing the infrastructure waterworks assets shall adjust the recorded accounting value according to the approved settlement value to adjust the accounting records and perform asset accounting in accordance with the law on accounting.

b) In cases where the project includes multiple items and assets (multiple accounting objects for asset records) but are not separately budgeted or settled, or are separately budgeted but not separately settled for each item and asset, the allocation shall be made for each item and asset to record in the accounting books according to the principle that costs directly related to a fixed asset should be attributed to that fixed asset; common costs related to multiple fixed assets shall be allocated based on the ratio of direct costs of each fixed asset to the total direct costs of all fixed assets.

c) For projects including multiple items and assets (multiple accounting objects for asset records) which are invested in and accepted for completion individually for each item and asset, once an item or asset has completed its construction investment and acceptance for use, it must be recorded in the accounting books from the date of handover for use. The initial cost recorded in the accounting books is the provisional initial cost calculated in accordance with point a of this clause.

When the competent authority approves the settlement of the project, the agency, organization, unit, enterprise shall adjust the provisional initial cost according to the approved settlement value to adjust the accounting books and perform asset accounting in accordance with regulations; in cases where there is no separate settlement for each item and asset, the agency, organization, unit, enterprise shall allocate the approved settlement value to each item and asset to record in the accounting books, adjust the accounting books (for items and assets already recorded in the accounting books) based on appropriate criteria (such as: construction area, quantity, detailed budget value of each item and asset...).

d) In cases where the settlement value of the project must be adjusted according to the recommendations and conclusions of the competent authority after inspection, audit, then the agency, unit, enterprise responsible for managing the water infrastructure assets must adjust the initial cost according to the recommendations and conclusions of the competent authority.

3. The initial cost of water infrastructure assets received from being assigned or transferred from the effective date of Decree No. 08/2025/NĐ-CP shall be determined as follows:

Where:

a) The initial cost recorded on the Asset Transfer and Acceptance Certificate is determined as follows:

a1) For water infrastructure assets that have been monitored and recorded in the accounting books, the initial cost recorded on the Asset Transfer and Acceptance Certificate is the initial cost of the water infrastructure assets that have been monitored and recorded in the accounting books of the agency, unit, enterprise transferring or transferring the assets.

a2) For water infrastructure assets that have not been monitored and recorded in the accounting books, the agency, unit, enterprise transferring or transferring the assets shall be responsible for determining the initial cost of the assets in accordance with the corresponding provisions of Clause 1 and Clause 2 of this Article before submitting to the competent authority for decision on the transfer or transfer of the assets.

b) Other costs (if any) are reasonable costs directly related to the receipt of assigned or transferred water infrastructure assets that the agency, unit, enterprise receiving the assets has incurred up to the time of putting the assets into use. In cases where common costs arise for multiple water infrastructure assets, the agency, unit, enterprise shall allocate the costs to each asset based on appropriate criteria (such as: area, volume of construction, quantity, value of assets incurring common costs...).

4. For water infrastructure assets when conducting inventory and discovering excess, the initial cost of the assets shall be determined in accordance with the provisions of Clauses 1, 2, and 3 of this Article depending on their origin and time of use.

5. For water infrastructure assets received back by agencies, units, enterprises after the expiration of the limited-term exploitation rights as stipulated at point c, Clause 6, Article 4 of this Circular, the initial cost of the water infrastructure assets shall be re-determined as equal to the initial cost recorded at the time of transfer under the Limited-Term Exploitation Rights Transfer Contract plus (if any) the value of investment for upgrading and expanding the assets according to the approved project.

6. Changes in the initial cost of water infrastructure assets

The initial cost of water infrastructure assets may be changed in the following cases:

a) Revaluation of asset values when conducting a comprehensive inventory as decided by the Prime Minister;

b) Implementation of upgrades and expansions of assets according to a project approved by the competent authority;

c) Dismantling one or more parts of water infrastructure assets (in cases where the value of the dismantled parts is included in the initial cost of the water infrastructure assets), except when dismantling for maintenance of the works; liquidation of one or more parts of water infrastructure assets;

d) Installation of one or more parts of water infrastructure assets, except when installation is for replacement during maintenance of the works;

đ) Assets partially lost or severely damaged due to natural disasters, force majeure, or other sudden impacts (except when the assets have been restored through insurance or compensation from related organizations or individuals).

7. The initial cost of water infrastructure assets as provided for in this Article serves as the basis for recording in the accounting books, calculating depreciation, and allocating depreciation of water infrastructure assets.

Article 6. Determining the Original Cost of Water Infrastructure Assets in Cases of Changes to the Original Cost of Assets

When changes occur to the original cost of water infrastructure assets as specified in Clause 6, Article 5 of this Circular, the agency or unit entrusted with managing the water infrastructure assets shall prepare a Record clearly stating the reasons (cases) for changing the original cost; simultaneously, they shall re-determine the original cost index of the water infrastructure assets as the basis for determining the depreciation rate, amortization amount, residual value of the assets to adjust the accounting books and manage, calculate depreciation, and allocate amortization of the assets according to the provisions of this Circular.

The re-determination of the original cost of water infrastructure assets in cases of changes to the original cost shall be carried out as follows:

1. In the case stipulated in Point a, Clause 6, Article 5 of this Circular, the original cost of the water infrastructure assets shall be re-determined according to the guidance of the competent authority on inventory and re-evaluation of assets.

2. In the case stipulated in Point b, Clause 6, Article 5 of this Circular, the original cost of the water infrastructure assets shall be re-determined by adding the current book value to the additional value due to investment in upgrading and expanding the water infrastructure assets. Among which, the additional value due to investment in upgrading and expanding the water infrastructure assets is the final settlement value approved by the competent authority in accordance with the law; if there is no approved final settlement value, the agency or unit entrusted with managing the water infrastructure assets shall record the additional value due to investment in upgrading and expanding the water infrastructure assets in the accounting books from the date of handover and put into use. The additional value in the book value is a provisional value, selected in the following priority order:

Approved or most recently adjusted total investment ceiling value (in cases where the total investment ceiling has been adjusted).

When the settlement value is approved by the competent authority, the agency, entity, or enterprise entrusted with managing the water infrastructure assets shall adjust the recorded value in the accounting books according to the approved settlement value to adjust the accounting books and perform asset accounting according to the law on accounting.

Value determined according to the A-B Acceptance Certificate (Total value of all settlement contract valuation tables between the project owner and the contractor);

Approved or most recently adjusted budget estimate (in cases where the project's budget estimate has been adjusted);

Approved or most recently adjusted total investment ceiling (in cases where the total investment ceiling has been adjusted).

Upon approval of the final settlement by the competent authority, the agency or unit entrusted with managing the water infrastructure assets shall adjust the additional value in the book value according to the approved final settlement value to adjust the accounting books and perform asset accounting in accordance with the regulations.

In the case where the project is approved by the competent authority for investment in construction, upgrading, and expansion of other assets (not belonging to water infrastructure assets but including investment in water infrastructure assets within the project), the additional value due to investment in upgrading and expanding the water infrastructure assets is the portion of the investment in water infrastructure assets in the final settlement value of the project approved by the competent authority.

3. In the case of dismantling one or several parts, liquidating one or several parts of the water infrastructure assets as stipulated in Point c, Clause 6, Article 5 of this Circular, the original cost of the water infrastructure assets shall be re-determined by subtracting the value of the dismantled part of the water infrastructure assets from the current book value and adding reasonable costs directly related to the dismantling and liquidation that the agency or unit entrusted with managing the water infrastructure assets has incurred up to the completion of the dismantling and liquidation.

Among which, the value of the dismantled part of the water infrastructure assets is determined as follows:

a) In the case where there is documentation to determine the purchase price, final settlement value/preliminary estimate value of the dismantled part of the water infrastructure assets, the value of the dismantled part is determined according to the purchase price, final settlement value/preliminary estimate value of the dismantled part.

b) In the case where there is no documentation as stipulated in Point a of this clause but the original cost of the water infrastructure assets can be allocated to the dismantled part according to appropriate criteria (such as: construction area, quantity, purchase price, preliminary estimate...), the value of the dismantled part of the water infrastructure assets is determined according to the allocated value.

c) In the case where there is no documentation as stipulated in Points a and b of this clause and the original cost of the water infrastructure assets cannot be allocated to the dismantled part, the value of the dismantled part of the water infrastructure assets is determined as the new purchase price of the dismantled part of the water infrastructure assets on the market at the time of putting the asset into use.

In the case where the new purchase price of the dismantled part of the water infrastructure assets on the market at the time of putting the asset into use cannot be determined, the agency or unit entrusted with managing the water infrastructure assets shall select to hire a valuation company to determine the value of the dismantled part of the water infrastructure assets as the basis for determining the original cost of the asset after dismantling and liquidation.

The use of appraisal certificates and appraisal reports of the valuation company shall be carried out in accordance with the law on prices.

4. In the case of installing one or several parts of the water infrastructure assets as stipulated in Point d, Clause 6, Article 5 of this Circular, the original cost of the water infrastructure assets shall be re-determined by adding the current book value to the additional value due to installation of one or several parts of the water infrastructure assets plus reasonable costs directly related to the installation that the agency or unit entrusted with managing the water infrastructure assets has incurred up to the completion of the installation.

Among which, the additional value due to installation of one or several parts of the water infrastructure assets is the corresponding value of the installed part determined according to the relevant cases stipulated in Article 5 of this Circular.

5. In the case provided for in point đ, Clause 6, Article 5 of this Circular, the asset management agency shall have the enterprise appraise the value remaining, the period of depreciation calculation, and the remaining depreciation expense of the asset (including the cost of having the enterprise appraise the value remaining, the period of depreciation calculation, and the remaining depreciation expense of the asset) in accordance with the provisions of Article 8 of this Circular regarding damaged assets to be recorded on the Minutes of Determination of Changes in Original Cost. The original cost of water conservancy infrastructure assets in this case shall be determined as follows:

The use of appraisal certificates and appraisal reports of the valuation company shall be carried out in accordance with the law on prices.

Article 7. Principles for Calculating Depreciation and Amortization of Water Conservancy Infrastructure Assets

1. Water conservancy infrastructure assets, which are fixed assets assigned to agencies, units, and enterprises for management and exploitation, must calculate depreciation in accordance with this Circular, except for the cases stipulated in Clause 2 and Clause 3 of this Article. 2. Water conservancy infrastructure assets shall be amortized when the cost of depreciation is included, either partially or entirely, in the cost of water conservancy public service products.

For assets received by agencies, units, and enterprises from other agencies, units, and enterprises according to the decision of competent authorities within the year, the calculation of depreciation in that year shall be carried out at the receiving agency or unit.

3. Publicly funded organizations that self-finance their regular expenses and investment management, and are permitted by authorized authorities to include depreciation costs in the cost of water conservancy public services, shall calculate depreciation and amortization as prescribed for businesses in the water conservancy sector under business laws.

4. Agencies, units, and enterprises entrusted with managing and exploiting water conservancy infrastructure assets are not required to calculate depreciation and amortization for:

a) Assets that have not yet been fully depreciated or amortized but are irreparably damaged and cannot be repaired for use;

b) Assets that have been fully depreciated or amortized but are still usable;

c) Water conservancy infrastructure assets during the transfer period with limited-term exploitation rights.

5. The calculation of depreciation and amortization of water conservancy infrastructure assets shall be conducted based on the following criteria:

a1) Type of asset (Complete water conservancy infrastructure system/individual assets);

a2) Period of depreciation and amortization of water conservancy infrastructure assets;

a3) Rate of depreciation and amortization;

a4) Accounting period in accordance with the current accounting regulations.

b) Depending on the situation of including depreciation costs in the cost of water conservancy products and services, agencies, units, and enterprises shall determine the method of calculating depreciation and amortization of water conservancy infrastructure assets as follows:

b1) For water conservancy infrastructure assets that do not include depreciation costs in the cost of water conservancy products and services, the agencies, units, and enterprises entrusted with managing and exploiting such assets shall calculate full depreciation;

b2) For water conservancy infrastructure assets that include all depreciation costs in the cost of water conservancy products and services, the agencies, units, and enterprises entrusted with managing and exploiting such assets shall fully amortize;

b3) For water conservancy infrastructure assets that include partial depreciation costs in the cost of water conservancy products and services, the agencies, units, and enterprises entrusted with managing and exploiting such assets shall both calculate depreciation and amortize.

6. The calculation of depreciation and amortization of water conservancy infrastructure assets shall be conducted as follows:

a) Depreciation calculation shall be performed once annually in December, before closing the accounting books;

b) For water conservancy infrastructure assets that are fully amortized, amortization shall be conducted monthly;

c) For water conservancy infrastructure assets that are both depreciated and amortized, both depreciation and amortization shall be conducted monthly.

b) For infrastructure waterworks assets that are fully amortized, the amortization shall be carried out monthly;

c) For infrastructure waterworks assets that both calculate depreciation and amortize, the calculation of depreciation and amortization shall be carried out monthly.

Article 8. List of assets, depreciation period, depreciation rate, and amortization rate

1. In case the accounting entry object is a system of assets

2. In case the accounting entry object is individual assets

3. On the basis of the scale, level, grade of the project, economic and social characteristics of each locality; based on the depreciation period/amortization period, depreciation rate/amortization rate prescribed in Clause 1 and Clause 2 of this Article; based on the proposal of the agency, unit, enterprise entrusted with managing and operating the infrastructure waterworks assets and the superior management agency (if any) of the agency, unit, enterprise entrusted with managing and operating the infrastructure waterworks assets, the specialized agency under the Ministry of Agriculture and Rural Development shall report to the Ministry of Agriculture and Rural Development, the specialized agency at provincial level shall report to the People's Committee of the province to decide or delegate decision-making authority on the depreciation period/amortization period and specific depreciation rate/amortization rate for each system and individual asset (each accounting entry object) according to the framework prescribed in Clause 1 and Clause 2 of this Article, ensuring appropriateness.

Article 9. Method of calculating depreciation and amortization

1. Depreciation and amortization rates:

a) For infrastructure waterworks assets that only calculate depreciation, the annual depreciation rate of each infrastructure waterworks asset is calculated according to the formula: Annual depreciation rate of infrastructure waterworks asset

Where:

- The depreciation rate is determined according to the provisions of Article 8 of this Circular.

b) For infrastructure waterworks assets that only calculate amortization, the monthly amortization rate of each infrastructure waterworks asset is calculated according to the formula:

Monthly amortization rate of infrastructure waterworks asset

Where:

- The amortization rate is determined according to the provisions of Article 8 of this Circular.

c) For infrastructure waterworks assets that both calculate depreciation and amortization, the monthly depreciation and amortization rate of each infrastructure waterworks asset is calculated as follows:

c1) The amortization amount equals the amortization expense included in the price of waterworks products and services during the amortization period of the infrastructure waterworks asset.

c2) The depreciation amount is calculated according to the following formula:

Depreciation amount

a) For infrastructure waterworks assets that only calculate depreciation, the accumulated depreciation of the asset up to year (n) is calculated according to the formula:

Accumulated depreciation of the asset up to year (n)

Accumulated amortization of the asset up to the accounting period (t)

Accumulated depreciation + accumulated amortization up to the accounting period (t)

a) For infrastructure waterworks assets that only calculate depreciation, the depreciation calculation rate for the final year of the asset usage period is calculated according to the formula:

Depreciation calculation rate of the asset for the final year

Amortization calculation rate of the asset for the final accounting period

Depreciation and amortization calculation rate for the final accounting period

Article 10. Remaining value of water conservancy infrastructure assets

Clause 1. The remaining value of water conservancy infrastructure assets shall only be calculated based on depreciation according to the formula:

Clause 2. The remaining value of water conservancy infrastructure assets shall only be calculated based on depreciation according to the formula:

Clause 3. The remaining value of water conservancy infrastructure assets shall be calculated both based on depreciation and depreciation accrual according to the formula:

Chapter IV
IMPLEMENTING PROVISIONS

Article 11. Transitional Provisions

Clause 1. In cases where water conservancy infrastructure assets have been depreciated according to Circular No. 75/2018/TT-BTC dated August 17, 2018 of the Ministry of Finance on management regulations and depreciation of infrastructure assets for transportation and water conservancy, if this Circular makes adjustments compared to Circular No. 75/2018/TT-BTC, from fiscal year 2025 onwards, agencies, units, and enterprises entrusted with managing water conservancy infrastructure assets shall calculate depreciation and accrual depreciation of assets according to the provisions of this Circular.

Clause 2. In cases where water conservancy infrastructure assets have not been depreciated or accrued depreciation according to Circular No. 75/2018/TT-BTC, agencies, units, and enterprises entrusted with managing water conservancy infrastructure assets shall fully calculate depreciation for all years of asset usage up to fiscal year 2024 according to the depreciation rate specified in Circular No. 75/2018/TT-BTC and add it to the depreciation and accrual depreciation of that asset in fiscal year 2025.

Article 12. Effectiveness and Responsibility for Implementation

Clause 1. This Circular takes effect from the date of issuance and is applied from fiscal year 2025.

Clause 2. Provisions related to water conservancy infrastructure assets, including those containing the term "water conservancy" throughout the content and Part V of the Appendix attached to Circular No. 75/2018/TT-BTC dated August 17, 2018 of the Ministry of Finance on management regulations and depreciation of infrastructure assets for transportation and water conservancy, are abolished from the date this Circular takes effect.

Clause 3. In cases where laws cited in this Circular are amended, supplemented, or replaced by other regulatory legal documents, they shall be implemented according to the provisions of the amended, supplemented, or replacing documents.

Clause 4. The Ministry of Agriculture and Rural Development, People's Committees of provinces and centrally governed cities are responsible for directing the implementation of depreciation and accrual depreciation of water conservancy infrastructure assets according to the provisions of this Circular./.