From December 1, 2024, what will the registration fee for automobiles be in Vietnam?

From December 1, 2024, what will be the registration fee for automobiles in Vietnam?

According to Article 1 of Decree 109/2024/ND-CP (effective until December 1, 2024), the provisions on the registration fee for automobiles are as follows:

Initial registration fee rate for automobiles, trailers or semi-trailers to be pulled by automobiles, and similar vehicles manufactured or assembled domestically

1. From the effective date of this Decree until November 30, 2024: The registration fee rate will be 50% of the rate prescribed in Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees; current resolutions of the People's Council or current decisions of the People's Committee of the province or central-affiliated city on local registration fees, and any amendments, supplements, or replacements (if any).

2. From December 1, 2024, onwards: The registration fee rate will continue to be implemented according to the provisions in Decree No. 10/2022/ND-CP dated January 15, 2022, by the Government of Vietnam on registration fees; current resolutions of the People's Council or decisions of the People's Committee of the province or central-affiliated city on local registration fees, and any amendments, supplements, or replacements (if any).

Additionally, according to Clause 5, Article 8 of Decree 10/2022/ND-CP which stipulates the registration fee rate as a percentage. To be specific:

Registration fee rate as a percentage (%):

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5. Automobiles, trailers, or semi-trailers pulled by automobiles, and similar vehicles: The rate is 2%.

Specifically:

a) Automobiles carrying up to 09 passengers (including pick-up cars): pay an initial registration fee at a rate of 10%. If a higher rate needs to be applied to suit local conditions, the Provincial People's Council or the People's Committee of the central-affiliated city can decide to adjust the increase but not exceeding 50% of the common rate specified at this point.

b) Pickup trucks with a permitted traffic weight of less than 950 kg and up to 5 seats, VAN trucks with a permitted traffic weight of less than 950 kg pay an initial registration fee at 60% of the first registration fee for automobiles carrying up to 09 passengers.

c) Battery electric cars:

- Within 3 years from the effective date of this Decree: pay an initial registration fee of 0%.

- In the following 2 years: pay an initial registration fee at 50% of the rate for gasoline or diesel automobiles with the same seating capacity.

d) The types of automobiles stipulated in points a, b, c above: from the second registration onwards, the fee rate is 2% and is applied uniformly nationwide.

Based on the type of vehicle recorded in the Certificate of Technical Safety Quality and Environmental Protection issued by the Vietnam registration agency, the tax authority determines the registration fee for automobiles, trailers or semi-trailers pulled by automobiles, and similar vehicles in accordance with this Clause.

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Thus, currently, the registration fee for automobiles is 50% of the prescribed rate. However, from December 1, 2024, the registration fee rate will continue according to the regulations with the registration tax rate for automobiles, trailers, or semi-trailers pulled by automobiles, and similar vehicles being 2%.

Specifically:

- Automobiles carrying up to 09 passengers (including pick-up cars): pay an initial registration fee at a rate of 10%. If a higher rate needs to be applied to suit local conditions, the Provincial People's Council or the People's Committee of the central-affiliated city can decide to adjust the increase but not exceeding 50% of the common rate specified at this point.

- Pickup trucks with a permitted traffic weight of less than 950 kg and up to 5 seats, VAN trucks with a permitted traffic weight of less than 950 kg pay an initial registration fee at 60% of the first registration fee for automobiles carrying up to 09 passengers.

- Battery electric cars:

- Within 3 years from the effective date of this Decree: pay an initial registration fee of 0%.

- In the following 2 years: pay an initial registration fee at 50% of the rate for gasoline or diesel automobiles with the same seating capacity.

- The types of automobiles stipulated above, from the second registration onwards, the fee rate is 2% and is applied uniformly nationwide.

From December 1, 2024, what will the registration fee for automobiles be in Vietnam? (Image from the Internet)

When to declare and pay automobile registration fees in Vietnam?

According to Article 11 of Decree 10/2022/ND-CP on registration fee declaration, the regulation is as follows:

- Organizations and individuals declare and pay the registration fee according to the law on tax management when registering the ownership and use rights of assets with the competent state agency.

- Electronic data on registration fee payment through the State Treasury, commercial banks, or organizations providing intermediary payment services is digitally signed by the General Department of Taxation and provided on the National Public Service Portal. It has the same value as paper documents for the traffic police agency, natural resources and environment agency, and other competent state agencies connected to the National Public Service Portal to access and exploit data for administrative procedures related to registering ownership and use rights for assets.

How to calculate the automobile registration fee in Vietnam?

According to Clause 3, Article 7 of Decree 10/2022/ND-CP, the calculation of the registration fee for automobiles is as follows:

- The registration fee rate is determined according to the price list for registration fees, ensuring it aligns with the market asset transfer price at the time of constructing the registration fee price list.

The market transfer price of assets for each type of automobile (for cars, according to the type of car; for trucks, according to the country of manufacture, brand, permissible carrying capacity; for passenger vehicles, according to the country of manufacture, brand, and number of passengers, including the driver) is based on the data provided in Clause 2 of this Article.

- In case of a new type of automobile not listed at the time of submission of the registration fee declaration, the tax authority, based on the data provided in Clause 2 of this Article, determines the registration fee for each new type of automobile (for cars, according to the type of car; for trucks, according to the country of manufacture, brand, permissible carrying capacity; for passenger vehicles, according to the country of manufacture, brand, and number of passengers, including the driver).

- In case of a new type of automobile not listed or for automobiles listed but with a transfer price increase or decrease of 5% or more compared to the price in the registration fee price list, the Tax Department will summarize and report to the Ministry of Finance by the 5th day of the last month of the quarter.

The Ministry of Finance shall issue a Decision on the adjustment and supplementation of the registration fee price list before the 25th day of the last month of the quarter to apply from the first day of the following quarter. The adjusted, supplemented registration fee price list is issued according to the regulations on issuing the registration fee price list specified at point a of this clause or based on the average registration fee of local tax authorities.