Government vehicle’s life span to be set at 15 years

Starting from 2015 January, Circular No 162/2014/TT-BTC that regulates fixed asset management and depreciation of government agencies, public service units and State-funded organizations will officially take effect.

In the category of life span and depreciation of fixed asset, government vehicles (official-serving car, general service car and special car) will have a life span of 15 years with a depreciation rate of 6.67%/year while that of mansion and Level-1 house is 80 years, that of Level-2 is 50 years, that of Level-3 is 25 years and of Level-4, 15 years. Office equipments will have a usage time of 5 to 8 years.

Accordingly, there are 6 types of fixed assets that do not need to calculate depreciation, including: rights to use land, special fixed asset, fixed asset currently leased by agencies, fixed asset stored or preserved for the State, usable fixed asset after usage validity has expired, unusable fixed asset with remaining usage validity.

The calculation of depreciation of fixed asset is calculated every year on December before closing or accounting irregularities. In case of take-over, splitting or merging of agencies or cases of total revaluation of fixed asset under State policies, fixed asset depreciation is calculated at the time of the decisions of State agencies having jurisdiction.

The Circular replaces Decision No 32/2008/QĐ-BTC issued by the Minister of Finance on management and calculation of depreciation of fixed asset in State agencies, public service units and State-funded organizations.

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