Based on Official Letter 2562/CTHNA-TTHT dated October 1, 2024 on fixed asset depreciation costs included in deductible expenses when determining taxable income for corporate income tax, the following guidance is provided:
1. For factories in operation, then temporarily stopped for repair and continued to use after repair, such as the case of factory 1 of the Company being used for production and business activities, having to temporarily stop operations for repair, completing the repair process and putting it back into operation (the temporary stop for repair does not exceed 09 months), the depreciation cost during the time of stopping operations for repair of factory 01 is deducted from the cost when determining taxable income of CIT if the above expenses meet all the conditions specified in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.
2. In the case of repairing a factory that is not in use, and then being repaired and then not used again (workshop No. 02 and workshop No. 03): Workshops No. 2 and 3 of the Company will stop operating from November 2021; The Company will carry out repairs and maintenance of the above two workshops from January 2024 to August 2024 (8 months). In case after repair, the above two workshops are not put into use, the depreciation cost of fixed assets of the above two workshops during the period of temporary suspension for repair will not be included in deductible expenses when determining taxable income for CIT because they do not serve the production and business activities of the Company, according to the provisions of Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance.
