CIT: Depreciation, Land Rent, and Maintenance Costs for Unleased Factory Building Are Tax-Deductible
RegHub explainer by New MarketerLast updated:
Based on:Nghị định số 320/2025/NĐ-CP ngày 15/12/2025 - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Ministry of Finance confirmed Dorco Living Vina Co., Ltd.'s interpretation of Article 9, Clause 2, Point i of Decree 320/2025/NĐ-CP: Costs related to assets held for lease during a period with no tenant (including depreciation, land rent, infrastructure maintenance and management costs) are deductible when determining taxable CIT income, provided the assets are owned or legally used by the enterprise. Specific case: Phase 2 factory building (construction completed December 2022, investment certificate amended to add leasing purpose on January 17, 2025, officially leased from April 2025). Costs from January 17, 2025 to March 31, 2025 are deductible in the 2025 tax year. The Ministry of Finance advises the company to apply per regulations and contact the direct tax authority for any remaining issues.
Question
Dorco Living Vina Co., Ltd. (Investment Certificate No. 7609845700, 4th amendment dated January 17, 2025): Phase 2 factory building completed December 2022, originally for manufacturing. Due to insufficient capital, the company amended its investment certificate on January 17, 2025 to add factory leasing as a business objective. Officially leased to Dorco Vina Co., Ltd. from April 2025. From January 17 to March 31, 2025, no revenue but costs arose for depreciation, land rent, and infrastructure maintenance. Question: are these costs deductible in the 2025 tax year?
Applicable Regulation
Article 9, Clause 2, Point i of Decree 320/2025/NĐ-CP dated December 15, 2025 (implementing CIT Law):
i3) Land rent costs and infrastructure maintenance and management costs paid to infrastructure businesses in economic zones, industrial zones, industrial clusters... land rent paid to the State for State-leased land where the site has not yet commenced the enterprise's production/business activities;
i4) Depreciation or amortization costs as required for leased assets during a period with no tenant. Where an enterprise holds assets for lease but has no tenant, if the assets are owned or legally used by the enterprise, related costs during the no-tenant period are deductible.
Conclusion
Depreciation, land rent, and infrastructure management costs for the Phase 2 factory building from January 17 to March 31, 2025 are deductible when determining 2025 taxable CIT income, provided the assets are owned/legally used by the enterprise and conditions under Article 9, Clause 1, Points b and c of Decree 320/2025/NĐ-CP are met.