What is the formula for calculating registration fees for motor vehicles upon reducing 50% of the registration fee rate under Decree 109/2024 in Vietnam?

What is the formula for calculating registration fees for motor vehicles upon reducing 50% of the registration fee rate under Decree 109/2024 in Vietnam?

Based on Article 6 of Decree 10/2022/ND-CP, the basis for calculating the registration fee is the base price for calculating the registration fee and the registration fee rate (%).

Simultaneously, in Decree 109/2024/ND-CP:

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).

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The formula for calculating the registration fee is as follows:

Where:

- Base price for calculating the registration fee for motor vehicle:

The base price for calculating the registration fee for motor vehicles is the price stated in the Decision on the base price schedule for calculating the registration fees issued by the Ministry of Finance as stipulated in Clause 3 Article 7 of Decree 10/2022/ND-CP.

The base price schedule for calculating the registration fees for motor vehicles in 2024 is stipulated in Decision 2353/QD-BTC of 2023, Decision 1707/QD-BTC of 2024, and Decision 449/QD-BTC of 2024.

- The registration fee rate (%) stipulated in Clause 5 of Article 8 of Decree 10/2022/ND-CP is reduced by 50% per Decree 109/2024/ND-CP.

What is the formula for calculating registration fees for motor vehicles upon reducing 50% of the registration fee rate under Decree 109/2024 in Vietnam? (Image from the Internet)

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

Under Article 1 of Decree 109/2024/ND-CP, the registration fee rate applicable to motor vehicles is specified as follows:

The registration fee rate applicable to domestic motor vehicles will be 50% of the rate below:

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 are the regulations on declaring and paying the registration fee in Vietnam?

According to Article 11 of Decree 10/2022/ND-CP, the regulations on declaring and paying the registration fee are as follows:

Declaration and payment of registration fee

1. Organizations and individuals shall conduct declarations and payments of registration fees in accordance with regulations of the law on tax administration when applying to competent state agencies for the right to own and use properties.

2. Digital database of payment of registration fees via the Vietnam State Treasury, commercial banks, or providers of intermediary payment services digitally signed by the General Department of Tax and uploaded to the National Public Service Portal, has the same value as paper receipts for traffic enforcer agencies, agencies of natural resources and environment, and other competent state agencies connected to the National Public Service Portal to access and utilize for purposes of resolving financial procedures related to registration of ownership and use rights.

Currently, the declaration and payment of the registration fee are implemented as follows:

- Organizations and individuals shall conduct declarations and payments of registration fees in accordance with regulations of the law on tax administration when applying to competent state agencies for the right to own and use properties.

- Digital database of payment of registration fees via the Vietnam State Treasury, commercial banks, or providers of intermediary payment services digitally signed by the General Department of Tax and uploaded to the National Public Service Portal, has the same value as paper receipts for traffic enforcer agencies, agencies of natural resources and environment, and other competent state agencies connected to the National Public Service Portal to access and utilize for purposes of resolving financial procedures related to registration of ownership and use rights.