Shall the 50% reduction in automobile registration fee ends in Vietnam from December 1, 2024 as per Decree 109? What will the automobile registration fee rate be from December 1, 2024?

Shall the 50% reduction in automobile registration fee ends in Vietnam from December 1, 2024 as per Decree 109?

Based on Article 1 of Decree 109/2024/ND-CP that stipulates the initial registration fee rates for automobiles, trailers, or semi-trailers pulled by automobiles, and similar types of vehicles manufactured or assembled domestically as follows:

Initial registration fee rates for automobiles, trailers, or semi-trailers pulled by automobiles, and similar types of vehicles manufactured or assembled domestically

1. From the date this Decree takes effect until the end of November 30, 2024: The registration fee rate is 50% of the rate stipulated in Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees; the current Resolutions of the People's Council or the current Decisions of the People's Committee of the provinces, central cities on the registration fee rate at localities and the amended, supplemented, replaced documents (if any).

2. From December 1, 2024 onward: The registration fee rate continues to be implemented according to the regulations of Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees; the current Resolutions of the People's Council or the current Decisions of the People's Committee of the provinces, central cities on the registration fee rate at localities and the amended, supplemented, replaced documents (if any).

From September 1, 2024 to the end of November 30, 2024, the initial registration fee rate for automobiles, trailers, semi-trailers pulled by automobiles, and similar vehicles domestically manufactured or assembled is reduced by 50% as stipulated in Decree 109/2024/ND-CP.

However, starting from December 1, 2024, the registration fee rates will revert to the regulations of Decree 10/2022/ND-CP.

This means that from December 1, 2024, the 50% registration fee discount for domestically produced, assembled automobiles will officially no longer apply.

Shall the 50% reduction in automobile registration fee ends in Vietnam from December 1, 2024 as per Decree 109? What will the automobile registration fee rate be from December 1, 2024? (Image from the Internet)

What are regulations on the registration fee for automobiles in Vietnam under Decree 10?

According to Clause 3, Article 7 of Decree 10/2022/ND-CP, the specific regulations on the taxable value for registration fee are as follows:

The taxable value for registration fee on assets that are automobiles and similar types of vehicles (herein referred to as automobiles), and motorcycles are stipulated in Clauses 6 and 7, Article 3 of Decree 10/2022/ND-CP (excluding trailers or semi-trailers pulled by automobiles, specialized automobiles, and specialized motorcycles) is the price in the Price List for registration fee issued by the Ministry of Finance.

- The taxable value for registration fee in the Price List for registration fee is determined based on the principle of ensuring compliance with the asset transfer price in the market at the time of establishing the Price List for registration fee.

- The market transfer price of each type of automobile, motorcycle (for automobiles and motorcycles, it is according to vehicle types; for trucks, it is according to the country of production, brand, permissible load to participate in traffic; for passenger cars, it is according to the country of production, brand, the number of people including the driver that are allowed to be transported) is based on data according to the provisions in Clause 2, Article 7 of Decree 10/2022/ND-CP.

- In the event a new type of automobile or motorcycle arises, which is not yet listed in the Price List for registration fee at the time of submitting the registration fee declaration, the tax authority bases its decision on the data according to Clause 2, Article 7 of Decree 10/2022/ND-CP to determine the taxable value for registration fee on each new type of automobile, motorcycle (for automobiles and motorcycles, it is according to vehicle types; for trucks, it is according to the country of production, brand, permissible load to participate in traffic; for passenger cars, it is according to the country of production, brand, the number of people including the driver that are allowed to be transported).

- In the event a new type of automobile or motorcycle arises that is not yet listed in the Price List for registration fee or an automobile, motorcycle listed in the Price List has its market transfer price increases or decreases by 5% or more compared to the price in the Price List for registration fee, the Tax Department will aggregate, and report to the Ministry of Finance before the 5th of the last month of the quarter.

Note:

The Ministry of Finance issues a Decision on adjusting and supplementing the Price List for registration fee before the 25th of the last month of the quarter to apply from the start of the next quarter. The adjusted, supplemented Price List for registration fee is issued according to the provisions on issuing the Price List for registration fee according to point a of this Clause or based on the average taxable value for registration fee of tax authorities in localities.

What is the automobile registration fee rate in Vietnam from December 1, 2024?

According to Clause 5, Article 8 of Decree 10/2022/ND-CP, it specifically stipulates as follows:

The registration fee rates as per Decree 10/2022/ND-CP are as follows:

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

*Except:

(1) Passenger cars with up to 09 seats or less (including pick-up passenger cars): initial registration fee is 10%. In case higher rates need to be applied to suit the actual conditions of each locality, the provincial or municipal People's Council decides to adjust the increase but not exceeding 50% of the common rate as stipulated in this point.

(2) Pick-up trucks with a permissible load lower than 950 kg and with up to 5 seats or less, VAN trucks with a permissible load lower than 950 kg: initial registration fee rate is 60% of the initial registration fee rate for passenger cars with up to 09 seats or less.

(3) Battery electric cars:

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

- In the next 2 years: initial registration fee is 50% of the rate for gasoline or diesel-powered cars with the same seating capacity.

For the types of cars mentioned in (1) (2) (3): second and subsequent registration fees are 2% applied uniformly nationwide.