Official Letter No. 2332 /CT-TTHT dated July 21st 2020 issued by Bac Ninh province Tax Department about Tax policy regarding to liquidate a part of fixed assets
In case the Company has fixed assets (F.A) which is a warehouse system (including categories such as: warehouse, locker house, toilets, rest houses, garage, etc.) is being managed by 1 code of F.A and not be separated to monitor. Due to the upgrade demand for matching the usage situation now, the Company wants to demolish the garage to reconstruct it more modernly, the dismantling of this will reduce original cost of fixed assets of the whole warehouse system, so:
- The Company shall prepare the sufficient procedures for the liquidation of F.A (such as: a written decision to dismantle a garage, a decision or the minutes of the liquidation of F.A, etc.);
- Determining the value of the assets to be liquidated;
- Determining income from liquidation the assets (if any).
If the Company is an export processing enterprise and liquidates fixed assets into the domestic market, the Company should contact the Customs Department for further guidance on customs procedures as prescribed.
Please kindly find detail in the attached file.