Are the proceeds from the auction of automobile license plates in Vietnam fully remitted into the central budget from July 1, 2023?
What are the steps to conduct an auction of automobile license plates in Vietnam?
On June 26, 2023, the Government of Vietnam issued Decree No. 39/2023/ND-CP detailing a number of articles of Resolution No. 73/2022/QH15 on pilot auction of automobile license plates.
The order of implementation of auction of automobile license plates in Vietnam is specified in Article 11 of Decree No. 39/2023/ND-CP as follows:
Step 1: Register to participate in the auction
- The registration to participate in the auction is done entirely in the network environment at the online auction information page of the property auction organization;
- Auction participants are provided with an account to access, are instructed on how to use the account, how to bid and other contents on the Online Auction Information Page to conduct the auction;
- Auction participants can choose automobile license plates according to their needs in the list of automobile number plates put up for auction of all provinces and centrally-run cities nationwide to participate in the auction;
- Auction participants pay the application fee, the reservation fee of the license plate of the automobile selected to participate in the auction to the account of the property auction organization and and be granted an auction participation code of that license plate auction;
- The property auction organization is responsible for receiving information on registration to participate in the auction and the deposit continuously from the date of listing the property auction until 03 days before the time of organizing the auction.
Step 2: Make an auction
Auction participants access the Online Auction Information Page with their login account and carry out auction procedures according to the Auction Regulations.
Step 3: Determine the successful bidder
At the end of the online auction, the online auction information page identifies the successful bidder, announces the auction results, displays the auction minutes for the successful bidder to confirm, and sends it to the email address of auction participants registered with the property auction organization.
The auctioneer is responsible for organizing the online auction, authenticating the auction minutes with a digital signature to send to the successful bidder.
Are the proceeds from the auction of automobile license plates in Vietnam fully remitted into the central budget from July 1, 2023?
Are the proceeds from the auction of automobile license plates in Vietnam fully remitted into the central budget from July 1, 2023?
Pursuant to Article 22 of Decree No. 39/2023/ND-CP stipulating the management and use of proceeds from auctions as follows:
- Assign the Ministry of Public Security to open a collection account at a bank or foreign bank branch to collect proceeds from auctions. The interest arising (if any) on the balance of the specialized collection account of the Ministry of Public Security shall be fully remitted into the state budget.
- The proceeds from the auto license plate auction after deducting the expenses for organizing the auction (for short, the proceeds from auction) and the arising interest (if any) on the special collection account balance of the company. The Ministry of Public Security shall make declaration, payment and finalization with tax authorities. The tax authority shall declare, pay and finalize this revenue in accordance with the law on tax administration.
+ No later than the 20th of every month, the Ministry of Public Security (or an agency assigned by the Ministry of Public Security to manage the collection and payment of proceeds from auction) declares and pays the proceeds from auction collected last month to the tax office (under Form No. 01/DG issued together with this Decree). The Ministry of Public Security (or the agency assigned by the Ministry of Public Security to manage the collection and payment of auction fees) shall finalize the auction proceeds on an annual basis (according to Form No. 02/DG issued together with this Decree) according to regulations of laws on tax administration;
+ All proceeds from the auction shall be remitted to the central budget.
+ Interests arising (if any) on the balance of specialized collection accounts of the Ministry of Public Security at banks or foreign bank branches must be remitted to the central budget, together with the auction proceeds collected in month of birth;
+ The Ministry of Public Security is responsible for determining and approving the expenses for organizing the auction as a basis for calculating the auction amount collected and remitted to the state budget.
- At the same time as making the annual state budget estimate, based on the implementation progress and funding needs, the Ministry of Public Security develops an estimate corresponding to 30% of the proceeds from the license plate auction last year, which has been remitted to the state budget to serve the work of ensuring traffic order and safety and fighting crime, invest in the system of facilities, provide training to improve qualifications for officials performing the work of registration and management of road motor vehicles and ensuring security and order, and send it to the Ministry of Finance for summarizing and submitting to competent authorities for allocating funds for implementation in the annual state budget estimate of the Ministry of Public Security in accordance with the Law on State Budget and relevant legal documents.
- In addition to the provisions specified in Clauses 1, 2 and 3 of this Article, the management and use of the proceeds from the auto license plate auction shall comply with the provisions of the law on state budget, laws on fees and charges and related laws.
Thus, according to the above provisions, the auction proceeds, after deducting the expenses for organizing the auction (for short, the proceeds from auction) and the arising interest (if any), will be paid in full to the central budget.
What are the steps to refund the winning automobile license plate auction?
Article 23 of Decree No. 39/2023/ND-CP stipulates the steps for refunding auction winnings:
- Step 1: Within 12 months from the date of having the written confirmation of the number plate of the winning automobile at the auction or the written extension of the registration period in case of force majeure events or objective obstacles:
+ The successful bidder has not yet registered the number plate of the winning automobile attached to the vehicle, the Ministry of Public Security will send a notice to the successful bidder at the address registered in the auction registration dossier.
+ In case the successful bidder dies: the legal heir of the successful bidder will be refunded the paid auction winning amount (after deducting the costs of organizing the auction as prescribed and no interest is charged) in accordance with the law.
- Step 2: Prepare the auction winning application for refund, including:
- Application form for refund of winning automobile license plate auction;
- Notarized written declaration of inheritance or written agreement on division of inheritance as prescribed by law;
- A written confirmation of the number plate of the automobile winning the auction;
- Power of attorney (if any);
- Citizen identity card of the co-heirs.
- Step 3: Within 15 days from the day on which the complete application for refund is received, the Ministry of Public Security shall carry out procedures for refunding the auction winning amount of the number plate to the lawful heir of the successful bidder as follows:
+ In case of refund before the time of payment to the state budget: Make a refund from a collection account of the Ministry of Public Security opened at a bank or foreign bank branch;
+ In case of refund after the time of payment to the state budget: The Ministry of Public Security is responsible for checking and comparing the refund request file with the documents of payment to the state budget of the previously paid amount. The Ministry of Public Security shall issue a decision on refund and issue an order to refund the state budget revenues and transfer them to the State Treasury where the state budget has been collected for refunding to state budget payers.
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