What is the latest Official Dispatch on registration fee reduction in Vietnam in 2024?

What is the latest Official Dispatch on registration fee reduction in Vietnam in 2024?

Current registration fee is as follows:

As of now, there is no recorded Official Dispatch on a reduction of the registration fee for 2024. However, most recently, on the day prior, in Notice 384/TB-VPCP 2024, the Standing Government of Vietnam concluded the Draft Decree on the level of registration fees for domestically produced automobiles, setting the reduced registration fee level for domestically manufactured and assembled automobiles.

After hearing the report from the Ministry of Finance, opinions from attending representatives, and statements from Deputy Prime Ministers, the Standing Government of Vietnam agreed on the following conclusions:

- Agreed to implement a 50% reduction in registration fees for domestically manufactured and assembled automobiles for 3 months (instead of a 6-month reduction as reported and requested by the Government of Vietnam).

- Ministry of Finance: To incorporate the second round of feedback from members of the Government of Vietnam to finalize the draft Decree, and to present it to the Prime Minister for issuance before August 18, 2024.

On August 29, 2024, the Government of Vietnam officially issued Decree 109/2024/ND-CP which stipulates the registration fee levels for cars, trailers, or semi-trailers pulled by cars, and other similar vehicle types manufactured and assembled domestically.

Specifically:

- From the effective date of Decree 109/2024/ND-CP until the end of November 30, 2024: The registration fee will be 50% of the rate specified in Decree 10/2022/ND-CP of the Government of Vietnam on registration fees;

Current Resolutions of the People's Council or current Decisions of the Provincial or Central City People's Committees on local registration fee rates, and documents amending, supplementing, or replacing them (if any).

- Starting December 1, 2024: The registration fee continues to be applied according to the provisions of Decree 10/2022/ND-CP of the Government of Vietnam on registration fees; current Resolutions of the People's Council or current Decisions of the Provincial or Central City People's Committees on local registration fee rates, and documents amending, supplementing, or replacing them (if any).

Therefore, car buyers will receive a 50% reduction in the registration fee (registration fee) for domestically manufactured and assembled cars, effective from September 1, 2024, until the end of November 30, 2024, after which it will return to the rate according to Decree 10/2022/ND-CP.

What is the latest Official Dispatch on registration fee reduction in Vietnam in 2024? (Image from Internet)

What is the registration fee for passenger cars with under 9 seats in Vietnam?

Based on Clause 5, Article 8 of Decree 10/2022/ND-CP, it is stipulated as follows:

registration fee Rates by Percentage (%)

1. Houses and land: The rate is 0.5%.

2. Hunting guns; guns used for training and competition: The rate is 2%.

3. Ships, including barges, motorboats, tugs, pushers, submarines, submersibles; boats, including yachts; airplanes: The rate is 1%.

4. Motorcycles: The rate is 2%.

Specifically:

a) Motorcycles of organizations or individuals in centrally-run cities; cities in provinces; district-level towns where the Provincial People's Committee is located pay the first-time registration fee at a rate of 5%.

b) Motorcycles registering the second time onward apply a rate of 1%. If the asset owner has declared and paid registration fees for motorcycles at a rate of 2%, then transfers the vehicle to an organization or individual in the area specified in point a of this clause, the registration fee payable is 5%.

5. Cars, trailers or semi-trailers pulled by cars, types of vehicles similar to cars: The rate is 2%.

5. Cars, trailers or semi-trailers pulled by cars, types of vehicles similar to cars: The rate is 2%.

Specifically:

a) Passenger cars with up to 9 seats (including pickups): pay the first-time registration fee at a rate of 10%. In cases where a higher rate needs to be applied to meet actual conditions at each locality, the Provincial People's Council or Central City may decide to adjust and increase this but not exceeding 50% of the general rate prescribed at this point.

b) Pickup trucks carrying goods with a permitted traffic participation weight of less than 950 kg and with up to 5 seats, and VAN trucks with a permitted traffic participation weight of less than 950 kg pay the first-time registration fee at 60% of the first-time registration fee for passenger cars with up to 9 seats.

[...]

Therefore, according to the regulations, passenger cars with up to 9 seats (including pickup vehicles) pay an initial registration fee rate of 10%. (If calculated according to the reduction from September 1, 2024, to November 30, 2024, it will be 5%)

*Note: In cases where a higher rate needs to be applied according to actual conditions at each locality, the Provincial People's Council or Central City may decide to adjust the rate upwards but not exceeding 50% of the generally prescribed rate.

When to declare and pay registration fees in Vietnam?

Based on Article 11 of Decree 10/2022/ND-CP, the regulations for declaring and paying registration fees are as follows:

- Organizations and individuals declare and pay registration fees in accordance with the law on tax management when registering ownership rights, and the right to use assets with competent state authorities.

- Electronic data on registration fee payments made through the State Treasury, commercial banks, or intermediary payment service providers is digitally signed by the General Department of Taxation and provided on the National Public Service Portal, having the same value as paper documents for the competent traffic police, environmental resources, and other state agencies connected to the National Public Service Portal to access and exploit data for handling administrative procedures related to registering ownership rights, and the right to use assets.