Question:
We are a newly established enterprise. Members have contributed capital to the enterprise in the form of assets, goods, and cash. If a member contributes capital to the enterprise with assets, can the enterprise depreciate those contributed assets?
Answer:
Based on Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance (amended and supplemented by Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, issued by the Ministry of Finance), which provides guidance on Corporate Income Tax (CIT), regarding the determination of deductible and nondeductible expenses when calculating taxable income for CIT purposes: In the case of a newly established enterprise where members contribute capital in the form of fixed assets, the enterprise can include these fixed assets in its cost by revaluing them. For other types of assets that do not meet the criteria of fixed assets with capital contributions and are revalued as prescribed, the enterprise can include these assets in its costs or gradually allocate them to deductible expenses based on the revaluation price.
