What is the formula for calculating registration fees for motor vehicles in Vietnam?

Are motor vehicles subject to registration fees in Vietnam?

Under Article 3 Decree 10/2022/ND-CP on property subject to registration fees:

Property subject to registration fees

1. Houses, land.

2. Hunting guns; guns used for training or sports.

3. Ships in accordance with regulations of the law on inland waterway transport and the maritime law (hereinafter referred to as “ships”), including barges, canoes, tugs, pushers, submarines, and submersibles; except for floating docks, floating storage units, and mobile offshore drilling units.

4. Boats including yachts.

5. Aircraft.

6. Two-wheeled or three-wheeled motorcycles, mopeds, and equivalences subject to registration fees and fitted with license plates issued by competent state agencies (hereinafter referred to as “motorcycles”).

7. Motor vehicles, trailers or semi-trailers towed by motor vehicles, and equivalences subject to registration fees and fitted with license plates issued by competent state agencies.

8. Frame, chassis assembly, engine assembly, and engine block of the property prescribed in Clauses 3, 4, 5, 6, and 7 of this Article, when replaced, subject to registration with competent state agencies.

The Ministry of Finance shall stipulate this Article in detail.

Thus, motor vehicles are subject to registration fees.

Which entities will pay the registration fees for motor vehicles in Vietnam?

Organizations and individuals who buy motor vehicles 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 Decree 10/2022/ND-CP.

(According to Article 4 Decree 10/2022/ND-CP)

What is the formula for calculating registration fees for motor vehicles in Vietnam? (Image from the Internet)

What is the formula for calculating registration fees for motor vehicles in Vietnam?

The registration fees for motor vehicles are calculated using the following formula:

Registration fee = Base price for motor vehicle x Registration fee rate (%)

(1) Base price for motor vehicle

The Base price for a motor vehicle is the price specified in the Decision on the Fee Schedule for registration fees issued by the Ministry of Finance.

Currently, the Base price for motor vehicles is stipulated in Decision 2353/QD-BTC of 2023, adjusted and supplemented by Decision 449/QD-BTC of 2024, and Decision 1707/QD-BTC of 2024.

- The registration fee price in the Fee Schedule is determined in principle to match the market transfer price of the assets at the time of setting the Fee Schedule.

The market transfer price of each type of motor vehicle (for motor vehicles based on vehicle type; for trucks based on country of manufacture, brand, permissible transport load; for passenger motor vehicles based on country of manufacture, brand, and permissible passenger capacity including the driver) is based on the databases as stipulated.

- In case a new type of motor vehicle arises and at the time of submitting the registration fee declaration, it is not available in the Fee Schedule, the tax authority will base on the database to decide the registration fee price of each new type of motor vehicle (for motor vehicles based on vehicle type; for trucks based on country of manufacture, brand, permissible transport load; for passenger motor vehicles based on country of manufacture, brand, and permissible passenger capacity including the driver).

- In case a new type of motor vehicle arises that is not available in the Fee Schedule, or a motor vehicle in the Fee Schedule whose market transfer price varies by 5% or more compared to the price in the Fee Schedule, the Tax Department will aggregate and report to the Ministry of Finance before the 5th of the last month of the quarter.

The Ministry of Finance issues a Decision on adjusting and supplementing the Fee Schedule before the 25th of the last month of the quarter to apply from the first day of the following quarter. The adjusted and supplemented Fee Schedule is released by regulations on issuing the Fee Schedule specified at point a of this clause, or based on the average registration fee price of the local tax authorities.

- For used motor vehicles, the registration fee is the remaining value of the new motor vehicle in the Fee Schedule (for motor vehicles based on vehicle type; for trucks based on country of manufacture, brand, and permissible transport load; for passenger motor vehicles based on country of manufacture, brand, and permissible passenger capacity including the driver). If no Base price for a new motor vehicle is in the Fee Schedule, the registration fee of the used motor vehicle is the remaining value of an equivalent vehicle type that has a registration fee price in the Fee Schedule.

(2) Registration fee rate (%) for motor vehicles

Motor vehicles, trailers or semi-trailers towed by motor vehicles, or equivalences: 2%.

Except:

- Passenger motor vehicles with 9 seats or fewer (including pickups for passenger transport), to which the rate of 10% applies upon first-time registration. If it is necessary to apply a higher rate to match local circumstances, the People's Council of the province or centrally affiliated city shall decide an increase not exceeding 50% of the general rate specified in this Point.

- Pickups for cargo transport with the maximum payload capacity allowed to be in traffic of under 950 kg and 5 or fewer seats and vans with the maximum payload capacity allowed to be in traffic of under 950 kg, to which the rate equal to 60% of the first-time registration fee for passenger motor vehicles with 9 seats or fewer applies upon first-time registration. 

- Electric motor vehicles running on batteries:

+ Within 3 years from the date this Decree comes into force: the first-time registration fee is 0%.

+ Within the next 2 years: the first-time registration fee is 50% of the fee rate for petrol and oil motor vehicles with the same quantity of seats.

- Types of motor vehicles prescribed in Points a, b, and c of this Clause, to which the re-registration fee rate of 2% applies uniformly on a nationwide scale.

Tax agencies shall consider the type of vehicle specified in the certificate of technical safety and quality and environment protection as issued by Vietnamese registry agencies to determine the registration fees payable on motor vehicles, trailers or semi-trailers towed by motor vehicles, and equivalences according to this Clause.

(According to clause 5 Article 8 Decree 10/2022/ND-CP)