When will the 2024 automobile registration fee reduction end in Vietnam?

When will the 2024 automobile registration fee reduction end in Vietnam?

Based on Article 2 of Decree 109/2024/ND-CP as stipulated below:

Effectiveness of Enforcement

1. This Decree shall be effective from September 1, 2024, to the end of November 30, 2024.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government of Vietnam, Chairpersons of People's Committees of provinces and cities under central authority, and other relevant organizations and individuals, are responsible for implementing this Decree.

The initial reduction period for the automobile, trailer, or semi-trailer registration fee and similar vehicles manufactured and assembled domestically is from September 1, 2024, to the end of November 30, 2024 (3 months).

When will the 2024 automobile registration fee reduction end in Vietnam? (Image from the Internet)

What is the automobile registration fee rate in Vietnam for 3 Months in 2024?

According to Article 1 of Decree 109/2024/ND-CP, the 3-month automobile registration fee rate in 2024 is clearly stated as follows:

The domestic automobile registration fee rate will be equal to 50% of the below rate:

Automobiles, trailers, or semi-trailers pulled by automobiles, and similar vehicles: The rate is 2%.

Specifically:

(1) Automobiles carrying up to 9 passengers (including pick-up trucks): pay an initial registration fee at a rate of 10%. In case a higher rate needs to be applied to suit the actual conditions of each locality, the People's Council of the province or city under central authority decides to adjust the increase, but no more than 50% of the general rate stipulated at this point.

(2) Pick-up trucks with a permissible carrying weight of less than 950 kg and up to 5 seats, and VAN trucks with a permissible carrying weight of less than 950 kg pay an initial registration fee at a rate equal to 60% of the initial registration fee rate for automobiles carrying up to 9 passengers.

(3) Battery-powered electric cars:

- For 3 years from the effective date of this Decree: pay an initial registration fee at a rate of 0%.

- For the next 2 years: pay an initial registration fee at a rate equal to 50% of the rate for gasoline and diesel cars with the same seating capacity.

The types of automobiles specified in (1) (2) (3): pay a registration fee from the second time onward at a rate of 2% and apply uniformly nationwide.

When must automobile registration fee be paid?

According to regulations in Article 11 of Decree 10/2022/ND-CP on declarations and payment of the registration fee as follows:

Declaration and Payment of Registration Fee

1. Organizations and individuals declare and pay the registration fee in accordance with the law on tax management when registering ownership or usage rights with competent state agencies.

2. Electronic data for registration fee payment through the State Treasury, commercial banks, or intermediate payment service providers are digitally signed by the General Department of Taxation and provided on the National Public Service Portal, having the same validity as paper documents for the traffic police agency, environmental resources agency, and other competent state agencies connected to the National Public Service Portal to access and exploit data for administrative procedure resolution regarding the registration of ownership and usage rights of assets.

Thus, organizations and individuals pay the registration fee for automobiles when registering ownership rights with competent state agencies.

How to determine the base price for automobiles to determine registration fees in Vietnam?

The calculation price for automobile registration fees is determined according to Clause 3, Article 7 of Decree 10/2022/ND-CP as follows:

The registration fee calculation price for assets like automobiles and similar vehicles (commonly referred to as automobiles) and motorbikes as stipulated in Clause 6 and Clause 7, Article 3 of Decree 10/2022/ND-CP (excluding trailers or semi-trailers pulled by automobiles, specialized automobiles, specialized motorbikes) is the price in the Decision on the Registration Fee Calculation Price Table issued by the Ministry of Finance.

[1] The registration fee calculation price in the Fee Calculation Price Table is determined on the principle of compliance with the asset's transfer price on the market at the time of establishing the Registration Fee Calculation Price Table.

The asset transfer price on the market for each type of automobile and motorbike (for automobiles and motorbikes, it is the vehicle type; for trucks, it is the country of manufacture, brand, permissible carrying weight; for passenger vehicles, it is the country of manufacture, brand, number of people it can carry including the driver) is based on the databases specified in Clause 2, Article 7 of Decree 10/2022/ND-CP.

[2] In case a new type of automobile or motorbike not listed in the Registration Fee Calculation Price Table arises at the time of submitting the registration fee declaration, the tax authority, based on the databases according to Clause 2, Article 7 of Decree 10/2022/ND-CP, determines the registration fee calculation price for each new type of automobile or motorbike (for automobiles and motorbikes, it is the vehicle type; for trucks, it is the country of manufacture, brand, permissible carrying weight; for passenger vehicles, it is the country of manufacture, brand, number of people it can carry including the driver).

[3] In case a new type of automobile or motorbike arises not listed in the Registration Fee Calculation Price Table, or automobiles and motorbikes listed have market transfer prices increasing or decreasing by 5% or more compared to the price in the Registration Fee Calculation Price Table, the Tax Department aggregates, reports to the Ministry of Finance before the 5th day of the last month of the quarter.

The Ministry of Finance issues a Decision on adjusting and supplementing the Registration Fee Calculation Price Table before the 25th day of the last month of the quarter to apply from the first day of the following quarter. The adjusted and supplemented Registration Fee Calculation Price Table is issued according to the regulations on issuing the Registration Fee Calculation Price Table specified in point [1] or based on the average registration fee calculation price of tax agencies in localities.