Useful lifespan applying to assets for tax purpose

Decision 206/2003/QD-BTC dated December 12, 2003 states the criteria to recognize the fixed assets and also a range of depreciation rate applying to fixed assets. The depreciation rate in the Decision 206 is applicable to all state owned enterprises. For other types of enterprises (i.e. foreign invested enterprises, joint stock companies, limited companies and other enterprises), the depreciation rate is applied for tax calculation. The depreciation rate regulated in the Decision is presented below:

Fixed Assets Categories Minimum Rate (Years) Maximum Rate (Years)
A. Equipment and machineries
1. Electrical generating machinery 8 10
2. Power-generating machinery 7 10
3. Transformer and power supply machinery 7 10
4. Other dynamic machineries and equipment 6 10
B. Working equipment and machineries
1. Machine-tools 7 10
2. Construction mining machinery 5 8
3. Plough 6 8
4. Agricultural and forestry industry machinery 6 8
5. Water and gasoline pumps 6 8
6. Metallurgical equipment, surface-processing equipment for anti-rust and metal erosion 7 10
7. Chemical producing special equipment 6 10
8. Construction materials, porcelain, and glass industry special equipment and machinery 6 8
9. Special equipment producing electrical components, optical and accurate mechanical devices 5 12
10. Machinery and equipment in leather industry, stationery and cultural product printing industry 7 10
11. Textile industry equipment and machinery 10 15
12. Garment industry equipment and machinery 5 7
13. Paper industry equipment and machinery 5 15
14. Food processing equipment and machinery 7 12
15. Movie and medical industry equipment and machinery 6 12
16. Television, computer, information, electronic and telecommunication industry equipment and machinery 3 15
17. Pharmaceutical industry equipment and machinery 6 10
18. Other working equipment and machinery 5 12
C. Measuring and experimenting instruments
1. Mechanics, acoustics, thermodynamics measuring and testing equipment 5 10
2. Optical and spectrum devices 6 10
3. Electricity and electronics equipment 5 8
4. Physicochemical measuring and analyzing equipment 6 10
5. Radioactivity measuring tools and equipment 6 10
6. Special equipment 5 8
7. Other measuring and experimenting equipment 6 10
8. Moulds used in casting industry 2 5
D. Means of transportation, transmitters
1. Road transport vehicle 6 10
2. Rail transport vehicle 7 15
3. Waterway transport vehicle 7 15
4. Air transport vehicle 8 20
5. Pipe transporting equipment 10 30
6. Cargo loading and unloading vehicle 6 10
7. Other transport equipment and vehicle 6 10
E. Management equipment and devices
1. Calculating and measuring device 5 8
2. Software, electronics and information equipment for management 3 8
3. Other management equipment and devices 5 10
F. Building, structure
1. Building (level 1) 25 50
2. Other buildings (1) 6 25
3. Storage, water container, bridge, road, parking lot, drying ground….. 5 20
4. Embankment, dam, drain, canal, trench, wharf, dock… 6 30
5. Other architectural works 5 10
G. Perennial trees, working and/or product animals
1. Animals 4 15
2. Industrial crops, orchard, perennial tree garden 6 40
3. Tree and grass cover 2 8
H. Other fixed assets not mentioned above 4 25