Request for Implementation of Automobile Registration Fee Reduction Until the End of 2023 According to the Guidelines of the General Department of Taxation.
Official Telegram 04/CD-TCT Requires Implementation of Car Registration Fee Reduction until the End of 2023, Right?
The General Department of Taxation has just issued Official Telegram 04/CD-TCT of 2023, directing the tax departments of provinces and centrally-managed cities; units directly under the General Department of Taxation to implement the application of registration fees for automobiles, trailers, or semi-trailers towed by automobiles and similar vehicles manufactured and assembled domestically according to the provisions of Decree 41/2023/ND-CP.
Article 1 of Decree 41/2023/ND-CP stipulates that from July 1, 2023, to December 31, 2023, the registration fee rate shall be 50% of the rate specified in Decree 10/2022/ND-CP regarding registration fees; the current Resolutions of the People's Councils or current Decisions of the People's Committees of provinces and centrally-managed cities on local registration fee rates and amended, supplemented, and replaced documents (if any).
To implement the decree, the General Department of Taxation requires tax departments to actively propagate and disseminate information to taxpayers in their localities; at the same time, directs tax branches to promptly implement the application of registration fee rates according to the provisions of Decree 41/2023/ND-CP to stimulate consumption and alleviate difficulties for production and business.
Previously, the Ministry of Finance opined that reducing the registration fee rate by 50% has a positive impact, contributing to stimulating consumption and alleviating difficulties for domestic automobile manufacturing and assembly enterprises and the socio-economy.
To be specific, according to the Ministry of Finance's statistics, reducing the registration fee by 50% for domestically manufactured and assembled automobiles in the last 6 months of 2020 (the implementation period of Decree 70/2020/ND-CP) reduced the registration fee revenue, leading to an increase in the number of registered domestically manufactured and assembled automobiles, consequently increasing registration fee revenue, VAT, and special consumption tax compared to the same period.
How to implement car registration fee reduction until the end of 2023 according to the General Department of Taxation's guidance?
What is the registration fee rate for domestically manufactured and assembled automobiles in the last 6 months of 2023?
According to Clause 1, Article 1 of Decree 41/2023/ND-CP:
Initial registration fee rate for automobiles, trailers, or semi-trailers towed by automobiles, and similar vehicles manufactured and assembled domestically
1. From the effective date of this Decree until December 31, 2023: The registration fee rate is 50% of the rate stipulated in Decree 10/2022/ND-CP dated January 15, 2022, by the Government of Vietnam regarding registration fees; the current Resolutions of the People's Councils or current Decisions of the People's Committees of provinces and centrally-managed cities on local registration fee rates and amended, supplemented, and replaced documents (if any).
Thus, the registration fee rate for automobiles from July 1, 2023, is 50% of the rate stipulated in Decree 10/2022/ND-CP; the current Resolutions of the People's Councils or current Decisions of the People's Committees of provinces and centrally-managed cities on local registration fee rates and amended, supplemented, and replaced documents (if any).
The period for implementing a 50% reduction in registration fees for domestically manufactured and assembled automobiles is from July 1, 2023, to December 31, 2023.
Note: After the reduction period in registration fees mentioned above, the registration fee rate for automobiles will follow Decree 10/2022/ND-CP.
What is the registration fee rate for automobiles according to Decree 10/2022/ND-CP?
According to Clause 5, Article 8 of Decree 10/2022/ND-CP, the registration fee rate is defined as follows:
Registration fee rate according to percentage (%)
...
5. Automobiles, trailers, or semi-trailers towed by automobiles, similar vehicles: The fee rate is 2%.
Specifically:
a) Automobiles carrying up to 9 people (including pick-up cars): the initial registration fee is 10%. If a higher rate is necessary to suit the local actual conditions, the provincial or centrally-managed city People's Council decides the adjustment but not exceeding 50% of the general rate in this point.
b) Pick-up trucks carrying cargo with an allowable transport weight of less than 950 kg and with up to 5 seats, VAN trucks with an allowable transport weight of less than 950 kg, shall pay an initial registration fee at 60% of the initial registration fee rate for automobiles carrying up to 9 people.
c) Battery electric cars:
- For the first 3 years from the effective date of this Decree: pay an initial registration fee at 0%.
- For the following 2 years: pay an initial registration fee at 50% of the rate for gasoline and diesel cars with the same number of seats.
d) The automobiles specified in points a, b, c of this clause: from the second registration fee onward, the rate is 2%, uniformly applied nationwide.
Based on the type of vehicle recorded on the Safety Technical Quality and Environmental Protection Certificate issued by the Vietnam Register, the tax authority will determine the registration fee rate for automobiles, trailers, or semi-trailers towed by automobiles, and similar vehicles according to this clause.
The registration fee rate for automobiles is determined to be 2%.
Specifically, for automobiles carrying up to 9 people, pick-up trucks, and battery electric cars, the registration fee rate is determined according to the provisions outlined above and guided in Clause 2, Article 4 of Circular 13/2022/TT-BTC.
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