Circular No. 28/2017/TT-BTC amends and supplements certain provisions of Circular No. 45/2013/TT-BTC dated April 25, 2013, and Circular No. 147/2016/TT-BTC dated October 13, 2016, of the Ministry of Finance guiding the management, use, and depreciation of fixed assets.

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 28/2017/TT-BTC	Hanoi, April 12, 2017

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CERTAIN ARTICLES OF CIRCULARS NO. 45/2013/TT-BTC DATED APRIL 25, 2013 AND NO. 147/2016/TT-BTC DATED OCTOBER 13, 2016 OF THE MINISTRY OF FINANCE GUIDING THE REGIME OF MANAGEMENT, USE, AND DEPRECIATION OF FIXED ASSETS

Pursuant to Decree No. 91/2015/NĐ-CP dated October 13, 2015 of the Government on investment of state capital in enterprises and management and use of capital and assets in enterprises;

Pursuant to Decree No. 91/2014/NĐ-CP dated October 1, 2014 of the Government amending and supplementing certain articles of decrees on tax;

Pursuant to Decree No. 218/2013/NĐ-CP dated December 26, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Corporate Income Tax;

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

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular amending and supplementing certain articles of Circular No. 45/2013/TT-BTC dated April 25, 2013 and Circular No. 147/2016/TT-BTC dated October 13, 2016 of the Ministry of Finance guiding the regime of management, use, and depreciation of fixed assets.

Article 1.

Repeal Clause 1, Article 1 of Circular No. 147/2016/TT-BTC dated October 13, 2016 of the Ministry of Finance amending and supplementing certain articles of Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the regime of management, use, and depreciation of fixed assets.

Article 2.

Amend and supplement Item 3, Point d, Clause 2, Article 4 of Circular No. 45/2013/TT-BTC dated April 25, 2013 of the Ministry of Finance guiding the regime of management, use, and depreciation of fixed assets as follows:

"- For mixed-use properties that serve both business operations and sale or lease as provided by law, enterprises must determine and account separately for the value of the property according to its intended use, specifically as follows:"

For the portion of the property value (area) of the mixed-use building serving business operations and leased (excluding financial leasing), enterprises shall record the value of the property (area) as fixed assets, manage, use, and depreciate fixed assets in accordance with regulations.

For the portion of the property value (area) in the mixed-use building intended for sale, enterprises shall not account it as fixed assets and shall not depreciate or monitor it as a saleable asset.

The criteria for determining the value of each type of asset and allocating depreciation for each intended use shall be based on the proportion of the value of each area according to its intended use relative to the total project settlement value; or based on the actual area used for each intended use for accounting purposes.

For enterprises with mixed-use buildings where the value (area) serving business operations and sale cannot be separated, enterprises shall not account the entire value (area) as fixed assets and shall not depreciate it according to regulations.

For shared assets related to mixed-use buildings such as playgrounds, roads, parking houses, the determination of the value of each type of asset and the allocation of depreciation for shared assets shall also be based on the criteria for determining the value of each type of asset and allocating depreciation for mixed-use buildings."

Article 3.

Effectiveness

1. This Circular takes effect from May 26, 2017 and applies from the fiscal year 2016.

2. During the implementation process, if there are difficulties or obstacles, please promptly reflect them to the Ministry of Finance for research and appropriate amendments and supplements.

Place of Receipt: - Prime Minister, Deputy Prime Ministers; - National Assembly's Office; - President's Office; - Office of the General Secretary; - Central Party Office and its Departments; - Government Office; - People's Procuracy NDTC; - Supreme People's Court; - Ministries, agencies equivalent to ministries, and agencies under the Government; - Central agencies of mass organizations; ||| - People's Committees of provinces and centrally-administered cities; - Provincial Departments of Finance, Departments of Agriculture and Rural Development, State Treasury Branches under provincial and centrally-administered city authorities; - National Academy of Public Administration; - State Audit Office; - Official Gazette; - Legal Draft Inspection Department (Ministry of Justice); - Government website; - Ministry of Finance website; - Units under the Ministry of Finance; - TO BE FILED: VT, Department of Corporate Value.

DEPUTY MINISTER DEPUTY MINISTER Tran Van Hieu