Vietnam: Is a Decree on the reduction in the registration fee rate applicable to motor vehicles from September 2024 available? Will the reduction of 50% in the registration fee rate applicable to motor vehicles be applied for three months until November 30, 2024?

Is a Decree on the reduction in the registration fee rate applicable to motor vehicles from September 2024 available? Will the reduction of 50% in the registration fee rate applicable to motor vehicles be applied for three months until November 30, 2024?

On August 29, the Government of Vietnam issued Decree 109/2024/ND-CP on the reduction in the registration fee rate applicable to motor vehicles by 50% for three months in 2024.

Decree 109/2024/ND-CP specifies that from September 1, 2024, to the end of November 30, 2024, the registration fee rate will be 50% of the rate specified in:

- Decree 10/2022/ND-CP and current resolutions of the People's Council or decisions of the People's Committee of provinces, centrally run cities regarding local registration fees, and any amended, supplemented, or replaced documents (if any).

From December 1, 2024, onward, the registration fee rate will still follow Decree 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees; current resolutions of the People's Council or decisions of the People's Committee of provinces, centrally run cities regarding local registration fees, and any amended, supplemented, or replaced documents (if any).

Previously, the reduction of registration fee rates applicable to auto trailers or semi-trailers pulled by motor vehicles and similar vehicles manufactured and assembled domestically followed Decree 41/2023/ND-CP.

From July 1, 2023, to the end of December 31, 2023, the registration fee rate was 50% of the rate specified in Decree 10/2022/ND-CP on registration fees; current resolutions of the People's Council or decisions of the People's Committee of provinces, centrally run cities regarding local registration fees, and any amended, supplemented, or replaced documents (if any).

Is a Decree on the reduction in the registration fee rate applicable to motor vehicles from September 2024 available? Will the reduction of 50% in the registration fee rate applicable to motor vehicles be applied for three months until November 30, 2024? (Photo from the Internet)

What is the registration fee rate applicable to motor vehicles from September 1, 2024 in Vietnam?

According to Article 1 of Decree 109/2024/ND-CP, the reduction in the registration fee rate applicable to motor vehicles is stipulated as follows:

Initial registration fee for motor vehicles, trailers, or semi-trailers pulled by motor vehicles and similar vehicles manufactured and assembled domestically

1. From the effective date of this Decree to the end of November 30, 2024: The registration fee rate will be 50% of the rate specified in Decree 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam stipulating on registration fees; current resolutions of the People's Council or decisions of the People's Committee of provinces, centrally run cities regarding local registration fees, and any amended, supplemented, or replaced documents (if any).

2. From December 1, 2024, onward: The registration fee rate shall follow Decree 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam stipulating on registration fees; current resolutions of the People's Council or decisions of the People's Committee of provinces, centrally run cities regarding local registration fees, and any amended, supplemented, or replaced documents (if any).

The registration fee rate applicable to motor vehicles from September 1, 2024, to November 30, 2024, will be officially reduced by 50% for the initial registration fee for motor vehicles, trailers, or semi-trailers pulled by motor vehicles and similar vehicles manufactured and assembled domestically.

Thus, the registration fee rate will be 50% of the following rates:

Motor vehicles, trailers, or semi-trailers pulled by motor vehicles, and similar vehicles: The fee rate is 2%.

(1) motor vehicles with up to 9 seats (including pick-up motor vehicles): Initial registration fee rate is 10%. If higher rates are needed to suit actual conditions in each locality, the Provincial People’s Council may decide to adjust upward, but not exceeding 50% of the general rate specified at this point.

(2) Pick-up trucks with a permissible payload of less than 950 kg and up to 5 seats, and VAN trucks with a permissible payload of less than 950 kg: Initial registration fee rate is 60% of the initial registration fee rate for motor vehicles with up to 9 seats.

(3) Battery electric motor vehicles:

- Within 3 years from the effective date of this Decree: Initial registration fee rate is 0%.- In the next 2 years: Initial registration fee rate is 50% of the rate for gasoline or diesel motor vehicles with the same number of seats.

Types of motor vehicles specified in (1) (2) (3): From the second registration fee payment onwards, the fee rate is 2%, uniformly applied nationwide.

What is the deadline for paying registration fees for motor vehicles in Vietnam?

According to Article 4 of Decree 10/2022/ND-CP on registration fees:

Payers of registration fees

Organizations or individuals in possession of a property subject to registrations fees prescribed in Article 3 of this Decree shall pay such fees to competent state agencies upon the registration of ownership and/or use of such property, except for cases subject to exemption from registration fees in accordance with regulations prescribed in Article 10 of this Decree.

Organizations and individuals in possession of a property subject to registration fees must pay the fees when registering ownership or use rights.

Additionally, according to Clause 8, Article 18 of Decree 126/2020/ND-CP on the deadline for paying registration fees for motor vehicles in Vietnam:

Deadlines for payment of tax-related amounts, fees for grant of right to extraction of water resources and minerals, fees for grant of sea area usage, registration fees and licensing fees

...

8. Registration fee shall be paid within 30 days from the day on which the notice is issued, unless the taxpayer is permitted to pay registration fee on credit.

Thus, the deadline for paying registration fees for motor vehicles in Vietnam is a maximum of 30 days from the day on which the notice is issued unless the taxpayer is permitted to pay the registration fee on credit.

Decree 109/2024/ND-CP takes effect from September 1, 2024, to November 30, 2024.