What is the cylinder capacity of two-wheeled motor vehicless required to pay excise tax in Vietnam?

What is the legal age to drive a two-wheeled motor vehicles in Vietnam?

Based on the provisions of Article 60 of the Road Traffic Law 2008, the regulations are as follows:

Article 60. Age and health of drivers

1. The age of drivers is regulated as follows:

a) Persons aged 16 years or older are allowed to drive motorcycles with a cylinder capacity of less than 50 cm3;

b) Persons aged 18 years or older are allowed to drive two-wheeled motor vehicless, three-wheeled motor vehicless with a cylinder capacity of 50 cm3 or more, and other similar structured vehicles; trucks, tractors with a load capacity of less than 3,500 kg; cars with up to 9 seats;

c) Persons aged 21 years or older are allowed to drive trucks and tractors with a load capacity of 3,500 kg or more; B2-class vehicles towing trailers (FB2);

d) Persons aged 24 years or older are allowed to drive buses with 10 to 30 seats; C-class vehicles towing trailers, semi-trailers (FC);

e) Persons aged 27 years or older are allowed to drive buses with more than 30 seats; D-class vehicles towing trailers (FD);

f) The maximum age for drivers of buses with more than 30 seats is 50 years for women and 55 years for men.

2. Drivers must have health suitable for the type of vehicle and its use. The Minister of Health shall coordinate with the Minister of Transport to regulate the health standards of drivers, the periodic health examination for car drivers, and the regulation of medical facilities conducting health examinations for drivers.

Thus, persons aged 18 years or older are allowed to drive two-wheeled motor vehicless with a cylinder capacity of 50 cm3 or more.

What is the cylinder capacity of two-wheeled motor vehicless required to pay excise tax in Vietnam? (Image from the Internet)

What cylinder capacity of two-wheeled motor vehicles must pay excise tax in Vietnam?

Based on the provisions of Clause 1, Article 2 of the excise tax Law 2008 (amended by Clause 1, Article 1 of the Amended excise tax Law 2014), the goods subject to excise tax include:

- Cigarettes, cigars, and other products from tobacco used for smoking, inhaling, chewing, sniffing, holding;

- Alcohol;

- Beer;

- Automobiles with fewer than 24 seats, including those designed with rows of seats suitable for both passengers and goods, with a fixed partition between the passenger compartment and the cargo compartment;

- Two-wheeled motor vehicless, three-wheeled motor vehicless with a cylinder capacity of over 125 cm3;

- Aircraft, yachts;

- All types of gasoline;

- Air conditioners with a capacity of 90,000 BTU or less;

- Playing cards;

- Votive papers and spiritual articles.

According to the above regulations, two-wheeled motor vehicless, three-wheeled motor vehicless with a cylinder capacity of over 125 cm3 are subject to excise tax. Therefore, businesses selling two-wheeled motor vehicless with a cylinder capacity over 125 cm3 must pay excise tax.

How to determine the taxable price for excise tax on domestically produced two-wheeled motor vehicless with a cylinder capacity over 125 cm3 in Vietnam?

Based on the provisions of Clause 1, Article 4 of Decree 108/2015/ND-CP, amended by Clause 1, Article 2 of Decree 100/2016/ND-CP:

- For domestically produced goods, it is the price set by the manufacturer. If the selling price of the manufacturer is not according to normal market transactions, the tax authority determines the tax according to the regulations of the Tax Management Law.

- The excise tax base price is determined as follows:

excise tax base price = [Price without VAT - Environmental protection tax (if any)] / [1 + excise tax rate]

Where the price without VAT is determined according to the regulations of the VAT law.

(i) For establishments producing goods subject to excise tax sold through dependent accounting branches, the base price for determining the excise tax is the price sold by the dependent accounting branch.

When the manufacturer sells through agencies selling at prices set by the manufacturer and only earning commissions, the selling price used to determine the excise tax base price is the price set by the manufacturer without deducting the commission.

(ii) For goods subject to excise tax sold to commercial business establishments that have a mother company-daughter company relationship or are daughter companies of the same mother company with the manufacturer, or commercial business establishments having a linked relationship, the selling price used to determine the excise tax base price must not be lower than 7% compared to the average selling price of commercial business establishments directly purchasing from the manufacturer.

If the manufacturer or importer establishes many intermediary commercial establishments having a mother-daughter company relationship or linked relationships, the selling price used to determine the excise tax base price must not be lower than 7% compared to the average selling price of these commercial establishments to commercial business establishments that do not have a mother-daughter company relationship or linked relationships with the manufacturer.

Establishments having a linked relationship as mentioned are when one enterprise directly or indirectly holds at least 20% of the investment capital of the other.

If the selling price used to determine the excise tax base price of the manufacturer producing goods subject to excise tax is lower than 7% compared to the average selling price of commercial business establishments selling to others, the excise tax base price is the price determined by the tax authority according to the regulations of the tax management law.