Proposal to Reduce 50% Registration Fee from August 1, 2024, to January 31, 2025, for Domestically Manufactured and Assembled Automobiles
Proposal to Reduce 50% of Registration Fee from August 1, 2024 to January 31, 2025 for Domestically Manufactured and Assembled Cars
Recently, the Ministry of Finance has presented a draft Decree regulating the collection rates of registration fees for cars, trailers, or semi-trailers pulled by cars and similar vehicles domestically manufactured and assembled Download.
The Ministry of Finance proposes to reduce the registration fee by 50% for domestically manufactured and assembled cars from August 1, 2024 to January 31, 2025 as follows: from August 1, 2024, to the end of January 31, 2025, the registration fee rate for domestically manufactured cars will be 50% of the fee rate regulated in Decree 10/2022/ND-CP on registration fees; existing resolutions of the Provincial People’s Council or prevailing decisions of the Provincial People's Committee and centrally-run cities on the local registration fee rate, and amended, supplemented, or replacement documents (if any).
From February 1, 2025, onward, the registration fee will continue to be implemented according to the provisions of Decree 10/2022/ND-CP on registration fees; the existing resolutions of the Provincial People’s Council or prevailing decisions of the Provincial People's Committee and centrally-run cities on the local registration fee rate, and amended, supplemented, or replacement documents (if any).
Proposal to reduce 50% of the registration fee from August 1, 2024 to January 31, 2025 for domestically manufactured and assembled cars (Image from the Internet)
What is the Registration Fee?
According to Clause 2, Article 3 of the Law on Fees and Charges 2015, the fee is defined as follows:
A fee is a predetermined amount that organizations or individuals must pay when a state agency provides a public service or serves the state management work as prescribed in the List of Fees and Charges issued together with the Law on Fees and Charges.
A registration fee is a predetermined amount that organizations or individuals must pay to fulfill their fee obligations before the assets subject to the registration fee are put into use.
Pursuant to Article 3 of Decree 10/2022/ND-CP, which regulates the subjects of registration fees, fee payers, the basis for calculating registration fees, deferred payment, exemptions, registration fee declaration, payment policies, and management, the subjects of registration fees include:
- Houses, lands.
- Hunting guns; guns used for training and sports competition.
- Ships according to the laws on inland waterway transport and maritime law (hereinafter referred to as watercraft), including barges, canoes, tugboats, push boats, submarines, submersibles; excluding floating docks, floating storage, and mobile platforms.
- Boats, including yachts.
- Aircraft.
- Two-wheeled motorcycles, three-wheeled motorcycles, scooters, similar vehicles to motorcycles and scooters that need to be registered and numbered by competent state authorities (hereinafter collectively referred to as motorcycles).
- Cars, trailers, or semi-trailers pulled by cars, similar vehicles to cars that need to be registered and numbered by competent state authorities.
- Frames, main assemblies, main engines, and engine blocks of the assets specified in clauses 3, 4, 5, 6, and 7 of Article 3 of Decree 10/2022/ND-CP, which are replaced and must be registered with competent state authorities.
How are the Current Registration Fee Rates for Various Types of Cars Regulated?
Pursuant to Article 8 of Decree 10/2022/ND-CP, the registration fee rates are prescribed as follows:
The registration fee rate for cars, trailers, or semi-trailers pulled by cars, similar vehicles to cars: The rate is 2%. The specific rates for some cases are as follows:
- Cars carrying up to 09 seaters (including pick-up cars): the first-time registration fee is 10%. If a higher rate is necessary according to the actual conditions of each locality, the Provincial People's Council can decide on an increase, but not exceeding 50% of the common rate regulated in this point.
- Pick-up cars with a permissible load of less than 950 kg and up to 5 seaters, VAN-type trucks with a permissible load of less than 950 kg, the first-time registration fee is 60% of the first-time registration fee for cars carrying up to 09 seaters.
- Battery-powered electric cars:
+ Within 3 years from March 1, 2022: the first-time registration fee is 0%.
+ In the following 2 years: the first-time registration fee is 50% of the rate for petrol and diesel cars with the same number of seats.
- Cars specified in points a, b, c clause 5, Article 8 of Decree 10/2022/ND-CP: the second-time and onwards registration fee is 2% and applied uniformly nationwide.
Based on the type of vehicle noted in the Certificate of Technical Safety and Environmental Protection Quality issued by the Vietnam Register, tax authorities determine the registration fee rate for cars, trailers, or semi-trailers pulled by cars, similar vehicles to cars as prescribed.
LawNet