On 23 March 2010, the Ministry of Finance has issued Circular 40/2010/TT-BTC providing guidance on identifying taxable income for asset revaluation differences. This circular becomes effective on 2 May 2010.
As stipulated in this circular, 100% state owned enterprises have to revalue their assets for equitisation purpose in compliance with prevailing regulations. The assets will be depreciated at the revalued value and the revaluation differences will be recorded as the increase of owner capital.
Other enterprises revalue their assets for the purposes of investment, corporate restructuring or mergers and acquisitions have to identify taxable income in accordance with clauses 2a, 2b, 2c of article 2 of this circular.
The enterprises received the assets will depreciate the assets at the revalued value (except for land use rights).
