Shall the property of a state-owned enterprise that has converted the type of enterprise without change in the owner be eligible for exemption from registration fees?

Main Content

• Shall the property of a state-owned enterprise that has converted the type of enterprise without change in the owner be eligible for exemption from registration fees?
• What does property subject to registration fees in Vietnam include?
• What is the maximum registration fee rate in Vietnam?
• What are the regulations on deferment of registration fees in Vietnam?

Shall the property of a state-owned enterprise that has converted the type of enterprise without change in the owner be eligible for exemption from registration fees?

On March 5, 2024, the General Department of Taxation in Vietnam issued Official Dispatch 802/TCT-CS responding to the policy of collecting registration fees.

Specifically, according to Official Dispatch 802/TCT-CS, the case of property of a state-owned enterprise that has converted the type of enterprise without change in the owner is specified as follows:

- The current law on registration fees has specific provisions for cases of property transfer and cases where property of organizations or individuals that have paid registration fees are divided or contributed due to division, consolidation, merger, or renaming of organizations under decisions of competent authorities.

=> Thus, the property of a state-owned enterprise that has converted the type of enterprise without change in the owner shall be eligible for exemption from registration fees as prescribed in Clause 18 Article 10 of Decree 10/2022/ND-CP.

What does property subject to registration fees in Vietnam include?

Under the provisions of Article 3 of Decree 10/2022/ND-CP, property subject to registration fees in Vietnam include:

Property subject to registration fees

- Houses, land.

- Hunting guns; guns used for training or sports.

- Ships in accordance with regulations of the law on inland waterway transport and the maritime law (hereinafter referred to as “ships”), including barges, canoes, tugs, pushers, submarines, and submersibles; except for floating docks, floating storage units, and mobile offshore drilling units.

- Boats including yachts.

- Aircraft.

- Two-wheeled or three-wheeled motorcycles, mopeds, and equivalences subject to registration fees and fitted with license plates issued by competent state authorities (hereinafter referred to as “motorcycles”).

- Motor vehicles, trailers or semi-trailers towed by motor vehicles, and equivalences subject to registration fees and fitted with license plates issued by competent state authorities.

- Frame, chassis assembly, engine assembly, and engine block of the property prescribed in Clauses 3, 4, 5, 6, and 7 of Article 3, Decree 10/2022/ND-CP, when replaced, subject to registration with competent state authorities.

What is the maximum registration fee rate in Vietnam?

Under the provisions in Clause 8, Article 8 of Decree 10/2022/ND-CP as follows:

Registration fee rates (%)

...

8. A transferee of a motor vehicle or motorcycle whose public ownership is established in accordance with regulations of law and whose previous ownership was registered shall pay a 2nd time forth registration fee upon registration of the ownership of such motor vehicle or motorcycle.

A transferee of a motor vehicle or motorcycle whose public ownership is established in accordance with regulations of law but the previous ownership of such motor vehicle or motorcycle was not registered or there are no grounds for determining whether or not the previous ownership was registered shall pay a first-time registration fee upon registration of the ownership of the motor vehicle or motorcycle

The maximum fee for registration of a property specified in this Article shall be 500 million VND per property per application, except for passenger motor vehicles with 9 seats or fewer, aircraft, and yachts.

The Ministry of Finance shall stipulate this Article in detail.

Thus, except for passenger motor vehicles with 9 seats or fewer, aircraft, and yachts, the maximum registration fee rate for other properties subject to registration fees shall be 500 million VND per property per application.

What are the regulations on deferment of registration fees in Vietnam?

Under Article 9 of Decree 10/2022/ND-CP, the deferment of registration fees in Vietnam is specified as follows:

(1) The fee for registration of houses and land of households and individuals eligible for deferment of land use fee shall be deferred according to regulations of the land law on the collection of land use fee. Households and individuals shall pay the registration fee in arrears according to the houses and land price prescribed by People’s Committees of provinces or centrally affiliated cities upon the declaration of such fee.

(2) When a household or individual granted the deferment of registration fee according to Clause 1 of Article 9 of Decree 10/2022/ND-CP transfers, converts or gifts the ownership of housing and the land use right to another entity (except the gifting of houses and land as prescribed in Clause 10 Article 10 of Decree 10/2022/ND-CP), the registration fee deferred must be paid in full prior to the transfer, conversion or gifting of the property.

(3) Procedures for deferment of registration fees

- Households and individuals eligible for deferment of houses, land registration fees, as stated in Clause 1 of Article 9 of Decree 10/2022/ND-CP, shall file the written declaration of registration fee in accordance with regulations of the law on tax administration.

- authorities competent to issue certificates of land use right and ownership of housing and property on land (referred to as authorized issuers of title deeds) shall consider such documents to verify the declarant's eligibility for deferment of houses, land registration fee, as stated in Clause 1 of Article 9 of Decree 10/2022/ND-CP, and mark the phrase "Nợ lệ phí trước bạ" ("Registration fee has not been paid") to the certificate of land use right and ownership of housing and property on land before the issuance of such certificate to the proprietor or user of the house, land.

- Upon the receipt of an application for transfer, conversion or gifting of housing ownership and land use right from a household or individual marked indebted for the registration fee, authorized issuers of title deeds shall forward the application with a “notification for verification of land-related financial obligation" to tax authorities which shall then calculate and send notifications of the registration fee in arrears to such household or individual for settlement prior to the procedure for transfer, conversion or gifting.