{"id":999978570,"date":"2025-09-29T09:22:03","date_gmt":"2025-09-29T02:22:03","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978570"},"modified":"2026-06-09T13:48:39","modified_gmt":"2026-06-09T06:48:39","slug":"fixed-asset-depreciation-management","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/","title":{"rendered":"Managing Fixed Asset Depreciation Expenses: The Key to Reducing Corporate Income Tax and Increasing Profits"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In accounting, managing asset depreciation costs contributes to the reasonable allocation of assets over periods, avoiding recording large losses in purchasing periods, and creating financial resources to invest in replacing old assets. Let&#039;s dig deeper into the above topic to understand why managing fixed asset depreciation costs is an important key for businesses.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Chi_phi_khau_hao_tai_san_co_dinh_la_gi\" >What is fixed asset depreciation expense?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Vi_du_don_gian\" >Simple example:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Y_nghia_cua_chi_phi_khau_hao_tai_san\" >Meaning of asset depreciation cost:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Y_nghia_cua_chi_phi_khau_hao_tai_san_co_dinh_trong_toi_uu_chi_phi_doanh_nghiep\" >The significance of fixed asset depreciation costs in business cost optimization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Cac_phuong_phap_tinh_chi_phi_khau_hao_tai_san_co_dinh_pho_bien_va_cach_lua_chon_phu_hop_de_toi_uu_chi_phi\" >Popular methods of calculating fixed asset depreciation costs and how to choose the right one to optimize costs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Phuong_phap_khau_hao_theo_so_du_giam_dan_co_dieu_chinh\" >Adjusted declining balance depreciation method:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Phuong_phap_khau_hao_theo_so_luong_khoi_luong_san_pham\" >Depreciation method based on quantity and volume of products:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Lua_chon_phuong_phap_toi_uu\" >Choose the optimal method:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Quy_Dinh_Ve_Khau_Hao_Tai_San_Co_Dinh_Theo_Thong_tu_452013TT-BTC\" >Regulations on Depreciation of Fixed Assets (According to Circular 45\/2013\/TT-BTC)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Khung_thoi_gian_trich_khau_hao_TSCD\" >Fixed asset depreciation time frame<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Cac_loai_TSCD_khong_phai_trich_khau_hao\" >Types of fixed assets that do not require depreciation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Quy_dinh_ve_thay_doi_thoi_gian_va_phuong_phap_trich_khau_hao\" >Regulations on changes in depreciation time and method<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Bizzi_%E2%80%93_Giai_phap_giup_toi_uu_hoa_quan_ly_chi_phi_khau_hao_tai_san_noi_rieng_va_chi_phi_doanh_nghiep_noi_chung\" >Bizzi \u2013 A solution to optimize asset depreciation cost management in particular and business costs in general\u00a0\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Nhin_nhan_lai_boi_canh_quan_ly_chi_phi_va_khau_hao_tai_san_co_dinh\" >Rethinking the landscape of fixed asset cost and depreciation management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Doanh_nghiep_giai_phap_bo_tro_toi_uu_hoa_chi_phi_va_ho_tro_gian_tiep_quan_ly_chi_phi_khau_hao_tai_san_%E2%80%93_Bizzi\" >Enterprise solution to support cost optimization and indirect support in asset depreciation cost management \u2013 Bizzi<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/fixed-asset-depreciation-management\/#Ket_luan\" >Conclude\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Chi_phi_khau_hao_tai_san_co_dinh_la_gi\"><\/span><b>What is fixed asset depreciation expense?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Depreciation is the process of systematically calculating and allocating the original cost of fixed assets to business expenses over their useful life. This is the decrease in value of tangible assets (such as property, vehicles, machinery) due to natural wear and tear or technological obsolescence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In which, fixed asset depreciation cost is the cost that a business uses to gradually allocate the value of a fixed asset over its useful life.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To put it simply: when a business purchases a large asset (for example: machinery, factory, truck, etc.), the value of that asset is not fully recorded as an expense in the purchase period, but is divided into smaller parts and recorded gradually over many periods, called <\/span><b>depreciation<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Vi_du_don_gian\"><\/span><b>Simple example:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The business bought a machine at a price <\/span><b>120 million VND<\/b><span style=\"font-weight: 400;\">, expected usage time <\/span><b>5 years<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Depreciation by straight-line method \u2192 Each year allocates:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span> <b>120 million \u00f7 5 years = 24 million\/year<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These 24 million are recorded as <\/span><b>depreciation costs of fixed assets<\/b><span style=\"font-weight: 400;\"> in the annual financial statements.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Y_nghia_cua_chi_phi_khau_hao_tai_san\"><\/span><b>Meaning of asset depreciation cost:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reflects actual depreciation value<\/b><span style=\"font-weight: 400;\"> of assets over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Contribute to determining the correct profit<\/b><span style=\"font-weight: 400;\"> during the period (if depreciation is not taken into account, profit will be &quot;virtually&quot; higher).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Help businesses accumulate capital<\/b><span style=\"font-weight: 400;\"> to reinvest or replace assets at the end of their useful life.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compliance with accounting and tax regulations<\/b><span style=\"font-weight: 400;\"> (Reasonable depreciation is included in valid expenses when determining taxable income of corporate income tax)<\/span><\/li>\n<\/ul>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-999978572 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/Chi-phi-khau-hao-tai-san-co-dinh-2.jpg\" alt=\"What is fixed asset depreciation expense?\u00a0\" width=\"760\" height=\"380\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/Chi-phi-khau-hao-tai-san-co-dinh-2.jpg 760w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/Chi-phi-khau-hao-tai-san-co-dinh-2-300x150.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/Chi-phi-khau-hao-tai-san-co-dinh-2-18x9.jpg 18w\" sizes=\"(max-width: 760px) 100vw, 760px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Y_nghia_cua_chi_phi_khau_hao_tai_san_co_dinh_trong_toi_uu_chi_phi_doanh_nghiep\"><\/span><b>The significance of fixed asset depreciation costs in business cost optimization<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The significance of fixed asset depreciation costs in optimizing business costs is very important, because it is not only an accounting number but also directly affects the efficiency of capital use, profits and reinvestment plans.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Financial implications:<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reflects the depreciation value in money, which is a component of <\/span><a href=\"https:\/\/bizzi.vn\/chi-phi-san-xuat-la-gi-dac-diem-vai-tro-va-cach-toi-uu-chi-phi-san-xuat-cho-doanh-nghiep\/\"><span style=\"font-weight: 400;\">production cost<\/span><\/a><span style=\"font-weight: 400;\"> business and product pricing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Contribute to the formation of depreciation funds (basic depreciation to regenerate assets and major repair depreciation to maintain and upgrade) for reinvestment, business expansion, increased labor productivity and reduced product costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Accounting meaning<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Helps reconcile asset costs with revenue generated in the same accounting period, ensuring accuracy and consistency of financial reporting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Increase access to loan sources for businesses.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax implications<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Depreciation is a reasonable expense deductible when calculating corporate income tax (CIT), helping to reduce the tax burden payable.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cac_phuong_phap_tinh_chi_phi_khau_hao_tai_san_co_dinh_pho_bien_va_cach_lua_chon_phu_hop_de_toi_uu_chi_phi\"><\/span><b>Popular methods of calculating fixed asset depreciation costs and how to choose the right one to optimize costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Here is a complete overview of common methods of calculating fixed asset depreciation and how to choose the optimal method for each situation:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recipe<\/b><span style=\"font-weight: 400;\">: Average annual depreciation rate = Original price of fixed assets \/ Depreciation period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Characteristic<\/b><span style=\"font-weight: 400;\">: Stable annual depreciation rate, easy to calculate and track.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fit<\/b><span style=\"font-weight: 400;\">: For businesses whose revenue generated from fixed assets is stable throughout their useful life.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Phuong_phap_khau_hao_theo_so_du_giam_dan_co_dieu_chinh\"><\/span><b>Adjusted declining balance depreciation method<\/b><span style=\"font-weight: 400;\">:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recipe<\/b><span style=\"font-weight: 400;\">: Annual depreciation rate = Residual value of fixed assets x Accelerated depreciation rate. Accelerated depreciation rate = Straight-line depreciation rate x Adjustment factor (depending on depreciation period).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Characteristic<\/b><span style=\"font-weight: 400;\">: Depreciation is higher in the early years and decreases later.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fit<\/b><span style=\"font-weight: 400;\">: For businesses in the technology sector with rapid changes, efficient operations, or for new, unused fixed assets such as machinery and experimental measuring equipment.<\/span><\/li>\n<\/ul>\n<h3><img decoding=\"async\" class=\"wp-image-999978573 size-full aligncenter\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-khau-hao-tai-san-2.png\" alt=\"depreciation expense\" width=\"669\" height=\"246\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-khau-hao-tai-san-2.png 669w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-khau-hao-tai-san-2-300x110.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-khau-hao-tai-san-2-18x7.png 18w\" sizes=\"(max-width: 669px) 100vw, 669px\" \/><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Phuong_phap_khau_hao_theo_so_luong_khoi_luong_san_pham\"><\/span><b>Depreciation method based on quantity and volume of products<\/b><span style=\"font-weight: 400;\">:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Recipe<\/b><span style=\"font-weight: 400;\">: Monthly\/annual depreciation rate = Number of products produced in the month\/year x Average depreciation rate calculated for 1 product unit. Average rate = Original price of fixed assets \/ Output according to designed capacity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Characteristic<\/b><span style=\"font-weight: 400;\">: Accurately reflects the level of usage of fixed assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fit<\/b><span style=\"font-weight: 400;\">: For fixed assets directly related to production activities, it is possible to determine the total volume\/quantity of products produced and the actual capacity used is not lower than 100% of the design capacity.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Lua_chon_phuong_phap_toi_uu\"><\/span><b>Choose the optimal method<\/b><span style=\"font-weight: 400;\">:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Enterprises need to base on expected revenue and expenses, as well as the characteristics of assets and fields of operation to choose the appropriate method of calculating asset depreciation costs, while complying with the appropriate principles in accounting. Specifically as follows:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Business goals<\/b><\/td>\n<td><b>Appropriate method<\/b><\/td>\n<td><b>Reason<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Stable profits, easy to plan<\/span><\/td>\n<td><b>Straight line<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Steady costs, little fluctuation in profits<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax optimization, fast capital recovery<\/span><\/td>\n<td><b>Decreasing balance<\/b><span style=\"font-weight: 400;\"> or <\/span><b>Total years of use<\/b><\/td>\n<td><span style=\"font-weight: 400;\">High costs at the beginning \u2192 early tax reduction<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Accurate reflection of output<\/span><\/td>\n<td><b>By output<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Variable cost according to performance, cost optimization<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Businesses with assets that are prone to obsolescence<\/span><\/td>\n<td><b>Rapid depreciation<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Avoid &quot;holding&quot; assets when they are no longer of use.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Quy_Dinh_Ve_Khau_Hao_Tai_San_Co_Dinh_Theo_Thong_tu_452013TT-BTC\"><\/span><strong>Regulations on Depreciation of Fixed Assets (According to Circular 45\/2013\/TT-BTC)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Fixed asset depreciation is the systematic allocation of the value of fixed assets to production and business costs during the useful life of the assets. This is an important content for businesses to determine reasonable costs when calculating corporate income tax (CIT).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Circular 45\/2013\/TT-BTC dated April 25, 2013 of the Ministry of Finance details the principles, methods and time frames for depreciation of fixed assets in enterprises.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Khung_thoi_gian_trich_khau_hao_TSCD\"><\/span><strong>Fixed asset depreciation time frame<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Enterprises are required to comply with the minimum and maximum depreciation time frames specified in Appendix 1 of Circular 45\/2013\/TT-BTC for each group of fixed assets.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">If the enterprise depreciates for a shorter period than the minimum or longer than the maximum period, the excess depreciation cost will not be included in reasonable expenses when determining taxable income of the enterprise.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">For example: A type of machinery has a depreciation period of 5\u201310 years. If the business chooses to depreciate over 12 years, the 2 years exceeding the period will not be included in the reasonable expenses.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cac_loai_TSCD_khong_phai_trich_khau_hao\"><\/span><strong>Types of fixed assets that do not require depreciation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not all fixed assets are depreciated. According to regulations, the following cases are not depreciated:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets have been fully depreciated but the enterprise continues to use them.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets lost before fully depreciated remaining value.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets managed by the enterprise but not owned (except for financial leased fixed assets).<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets are not managed, monitored, or accounted for in accounting books.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets serving employee welfare activities (canteens, motels, sports facilities, transportation vehicles, etc.), except for some exceptional cases, are allowed to be depreciated and are included in reasonable expenses.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets are formed from non-refundable aid used for scientific research activities.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Intangible fixed assets are long-term, stable land use rights (with land use fees collected or legally transferred).<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Fixed assets of type 6 (infrastructure, valuable works invested by the State).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Quy_dinh_ve_thay_doi_thoi_gian_va_phuong_phap_trich_khau_hao\"><\/span><strong>Regulations on changes in depreciation time and method<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To ensure stability, Circular 45 provides strict regulations when businesses want to change the depreciation time or method:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Change depreciation period:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Enterprises are allowed to change depreciation time. <\/span><b>one time only<\/b><span style=\"font-weight: 400;\"> for a property.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Change is a must <\/span><b>specific explanation<\/b><span style=\"font-weight: 400;\"> and approved by the competent authority.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Change depreciation method:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Enterprises must implement the selected depreciation method correctly. <\/span><b>consistent throughout the life of the fixed assets<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">If change is needed, the business can only change <\/span><b>one time only<\/b><span style=\"font-weight: 400;\"> and must have a written explanation and notification to the direct tax authority.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Notice before applying:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Businesses must <\/span><b>Depreciation method and depreciation period announcement<\/b><span style=\"font-weight: 400;\"> of each type of fixed assets to the tax authority before implementation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In summary, Circular 45\/2013\/TT-BTC clearly stipulates the time frame, subjects eligible\/not eligible for depreciation and principles when changing methods. Compliance with regulations not only helps businesses <\/span><b>optimize reasonable costs when calculating taxes<\/b><span style=\"font-weight: 400;\"> but also ensures transparency and standards in financial management and accounting.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bizzi_%E2%80%93_Giai_phap_giup_toi_uu_hoa_quan_ly_chi_phi_khau_hao_tai_san_noi_rieng_va_chi_phi_doanh_nghiep_noi_chung\"><\/span><b>Bizzi \u2013 A solution to optimize asset depreciation cost management in particular and business costs in general\u00a0\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To optimize business costs, including costs related to fixed assets (FA) and depreciation management, the application of technological solutions, especially <\/span><a href=\"https:\/\/bizzi.vn\/danh-gia-top-27-phan-mem-quan-ly-chi-phi-duoc-ua-chuong-nhat-2025\/\"><span style=\"font-weight: 400;\">cost management software<\/span><\/a><span style=\"font-weight: 400;\"> is very necessary.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Nhin_nhan_lai_boi_canh_quan_ly_chi_phi_va_khau_hao_tai_san_co_dinh\"><\/span><strong>Rethinking the landscape of fixed asset cost and depreciation management<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depreciation of fixed assets (FA) is an important element in the financial management and accounting of enterprises. Depreciation helps to systematically allocate the original cost of assets to business expenses during the period of use, and is considered a reasonable expense deducted from taxable income, thereby reducing the tax burden.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not only ensuring the appropriate principles in accounting, depreciation also creates a basis for enterprises to recover initial investment costs, and at the same time plan for reinvestment and major repairs. Through the depreciation fund, enterprises have resources to regenerate all fixed assets, maintain and upgrade existing assets to meet long-term production and business requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, many systems <\/span><b>Enterprise Resource Planning (ERP)<\/b><span style=\"font-weight: 400;\"> has built-in Finance - Accounting module with fixed asset management function and automatic depreciation calculation. This not only helps accountants reduce manual work but also provides accurate and consistent data for cost management and financial planning.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Doanh_nghiep_giai_phap_bo_tro_toi_uu_hoa_chi_phi_va_ho_tro_gian_tiep_quan_ly_chi_phi_khau_hao_tai_san_%E2%80%93_Bizzi\"><\/span><b>Enterprise solution to support cost optimization and indirect support in asset depreciation cost management \u2013 Bizzi<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Bizzi.vn<\/b><span style=\"font-weight: 400;\"> is a technology platform specializing in digitizing and automating financial - accounting - cost management processes in businesses. Although not a software specializing in calculating fixed asset depreciation, Bizzi still plays a role as <\/span><b>indirect but important support tool<\/b><span style=\"font-weight: 400;\">, helping businesses optimize costs, increase operational efficiency and have accurate financial data to make investment and reinvestment decisions.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-999978407 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-la-gi-cac-loai-chi-phi-trong-doanh-nghiep-4.png\" alt=\"depreciation expense\" width=\"1024\" height=\"648\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-la-gi-cac-loai-chi-phi-trong-doanh-nghiep-4.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-la-gi-cac-loai-chi-phi-trong-doanh-nghiep-4-300x190.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-la-gi-cac-loai-chi-phi-trong-doanh-nghiep-4-768x486.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/chi-phi-la-gi-cac-loai-chi-phi-trong-doanh-nghiep-4-18x12.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Notable solutions include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Bizzi Expense<\/b><span style=\"font-weight: 400;\">: expense\/cost management \u2013 from recording invoices, classifying expenses, approving expenses, comparing budget vs actual expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automate input invoices<\/b><span style=\"font-weight: 400;\"> (Bizzi IPA) \u2013 receive, process, compare, store electronic invoices, reduce manual data entry, reduce errors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business management cost report<\/b><span style=\"font-weight: 400;\"> - has standard form, has clear expense tracking, budget, and cost classification.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Although it is not a specialized fixed asset depreciation software (i.e. it does not directly calculate depreciation prices, methods, useful life, depreciation by balance...), Bizzi is a tool that helps businesses automate all operations related to financial management, and is a powerful assistant for modern accounting:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial Automation Focus:<\/b><span style=\"font-weight: 400;\"> Bizzi.vn is a specialized financial automation platform with a deep focus on streamlining and automating financial back-office operations such as <\/span><b>input invoice processing<\/b><span style=\"font-weight: 400;\">, <\/span><b>cost management<\/b><span style=\"font-weight: 400;\"> and <\/span><b>debt control<\/b><span style=\"font-weight: 400;\">. Although Bizzi.vn does not have direct modules to calculate fixed asset depreciation like a comprehensive ERP system, its functions can contribute significantly to optimizing the overall costs of the business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Through integration, Bizzi.vn can help <\/span><b>Synchronize cost and budget data<\/b><span style=\"font-weight: 400;\">This indirectly supports businesses in having a more comprehensive and accurate view of their financial situation, creating a solid foundation for making decisions related to investment and asset depreciation effectively.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manage expenses effectively with <\/b><a href=\"https:\/\/bizzi.vn\/quan-ly-chi-phi\/\"><b>Bizzi Expense<\/b><\/a><b>:<\/b><span style=\"font-weight: 400;\"> Bizzi Expense offers features that help businesses <\/span><b>Set up budgets by department\/project and monitor spending against budget in real time<\/b><span style=\"font-weight: 400;\">, and alerts when overspending. The system also has an automated and flexible spending approval process. This efficient management and control of operational spending helps businesses minimize waste and optimize cash flow, creating better resources to reinvest in fixed assets when they are fully depreciated and need to be replaced or upgraded. Bizzi Expense also claims to help businesses save up to 80% in costs compared to other solutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automate input invoice processing:<\/b><span style=\"font-weight: 400;\"> Bizzi.vn uses RPA and AI technology to automatically download, check and reconcile invoices with purchase orders (POs) and warehouse receipts (GRs) in real-time, detect discrepancies and verify valid suppliers. This helps <\/span><b>Significantly reduces manual processing time and costs<\/b><span style=\"font-weight: 400;\">, while minimizing errors. Reducing administrative costs and ensuring the accuracy of input data is an important factor in managing the overall costs of the enterprise, which may include costs related to the purchase, maintenance and operation of fixed assets, thereby indirectly affecting the effectiveness of depreciation cost management.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With the above effective support, Bizzi has solved difficult problems in businesses related to the shortage of human resources, time constraints and difficulty in controlling costs in general, and asset depreciation costs in particular.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Managing fixed asset depreciation costs accurately and effectively is key to helping businesses optimize financial operations, ensure legal compliance, and create a solid foundation for development.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the above methods of calculating asset depreciation costs, if you are a new business or want to optimize taxes, you should choose accelerated depreciation (decreasing balance or total number of years) to reduce tax pressure and optimize initial cash flow. If the business is stable and wants to have a &quot;beautiful&quot; financial report, choose a straight line to keep profits stable. If your industry has a lot of fluctuating output, use output to reflect the exact cost.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, applying technology solutions such as Bizzi.vn will be a smart choice to automate and streamline financial processes, thereby improving productivity and cost management efficiency for businesses. For more detailed advice on suitable solutions for businesses, register here to schedule a demo: <\/span><a href=\"https:\/\/bizzi.vn\/dat-lich-demo\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dat-lich-demo\/<\/span><\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>In accounting, asset depreciation cost management contributes to the reasonable allocation of assets over periods, avoiding recording...<\/p>","protected":false},"author":56,"featured_media":999978571,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[263,84],"tags":[],"class_list":["post-999978570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kien-thuc","category-thiet-lap"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999978570"}],"version-history":[{"count":3,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978570\/revisions"}],"predecessor-version":[{"id":999978690,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978570\/revisions\/999978690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978571"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}