Depreciation of fixed assets in the case of temporary suspension for repairs

Depreciation of fixed assets is considered a deductible expense when determining taxable income for corporate income tax as guided as follows:

• For factory currently in operation that are temporarily suspended for repairs: In case the Factory 01 of the Company is being used for production and business activities, and needs to be temporarily suspended for repairs; and the repair process is completed and put back into operation (the suspension period for repairs does not exceed 09 months), the depreciation expense during the suspension period for the repair of Factory 01 is deducted from expenses when determining taxable income for corporate income tax if the above expenses meet all the conditions specified in Clause 1, Article 6 of Circular 78/2014/TT-BTC dated June 18, 2024 of the Ministry of Finance (amended and supplemented in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance).
• In the case of repairing a factory that is not in use, and then being repaired but not used again (Factory 02 and Factory 03): Factory 02 and Factory 03 of the Company stopped operating from November 2021; the Company carried out repairs and maintenance on these two factories from January 2024 to August 2024 (8 months). In case after the repairs, these two factories continue to remain unused, the depreciation of fixed assets of these two factories during the period of temporary suspension for repairs shall not be included in deductible expenses when determining taxable income for corporate income tax, as they do not serve the production and business activities of the Company, according to the provisions of Article 6 of Circular 78/2014/TT-BTC dated June 18, 2024 of the Ministry of Finance (amended and supplemented in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance).