NEW: Issuance of Decree 109/2024/ND-CP on reducing registration fees for domestically manufactured and assembled automobiles in Vietnam

Issuance of Decree 109/2024/ND-CP on reducing registration fees for domestically manufactured and assembled automobiles in Vietnam

Earlier, in the Notice 384/TB-VPCP 2024, the permanent members of the Government of Vietnam concluded the Draft Decree on the Registration Fee Rates for domestically manufactured automobiles and agreed to a reduction of the registration fee for domestically manufactured and assembled automobiles.

After listening to the Ministry of Finance’s report, the opinions of the attending delegates, and the statements of the Deputy Prime Ministers, the permanent members of the Government of Vietnam unified the conclusions as follows:

- Unanimously agreed to reduce the registration fee by 50% for domestically manufactured and assembled automobiles within 3 months (instead of reducing it for 6 months as previously reported and requested for approval from the Government of Vietnam).

- Ministry of Finance: To incorporate the opinions from the second round of feedback from the Government of Vietnam members to finalize the draft Decree and submit it to the Prime Minister of the Government of Vietnam for signing before August 18, 2024.

On August 28, 2024, the Government of Vietnam officially issued Decree 109/2024/ND-CP stipulating the registration fee for automobiles, trailers or semi-trailers pulled by automobiles, and similar vehicles manufactured and assembled domestically.

Article 1 of Decree 109/2024/ND-CP stipulates the initial registration fee for automobiles, trailers, or semi-trailers pulled by automobiles and similar vehicles manufactured and assembled domestically as follows:

(1) From the effective date of Decree 109/2024/ND-CP until November 30, 2024: The registration fee rate is 50% of the rate specified in Decree 10/2022/ND-CP dated January 15, 2022, by the Government of Vietnam on registration fees; the existing Resolutions of the People's Council or existing Decisions of the provincial or municipal People's Committees on local registration fee rates and any amendments, supplements, or replacements thereto (if any).

(2) From December 1, 2024, onwards: The registration fee rate will continue as stipulated in Decree 10/2022/ND-CP dated January 15, 2022, by the Government of Vietnam on registration fees; the existing Resolutions of the People's Council or existing Decisions of the provincial or municipal People's Committees on local registration fee rates and any amendments, supplements, or replacements thereto (if any).

Thus, the Government of Vietnam has officially issued Decree 109/2024/ND-CP stipulating a 50% reduction in registration fees for domestically manufactured and assembled automobiles effective from September 1, 2024, until November 30, 2024. From December 1, 2024, the registration fee rate will revert to the current stipulated rate (Decree 10/2022/ND-CP).

When does Decree 109/2024/ND-CP take effect in Vietnam?

According to Article 2 of Decree 109/2024/ND-CP regarding its effective date:

Effective Date

1. This Decree takes effect from September 1, 2024, until November 30, 2024.

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

Thus, Decree 109/2024/ND-CP takes effect from September 1, 2024, until November 30, 2024.

08 subjects liable to registration fees according to Decree 10/2022/ND-CP in Vietnam

According to Article 3 of Decree 10/2022/ND-CP, the subjects liable for registration fees include:

(1) Houses, land.

(2) Hunting guns; guns used for training, competition.

(3) Ships as defined by the law on inland waterway traffic and maritime law (hereinafter referred to as watercraft), including barges, motorboats, tugboats, push boats, submarines, submersibles; excluding floating docks, storage vessels, and mobile rigs.

(4) Boats, including yachts.

(5) Aircraft.

(6) Two-wheeled motorcycles, three-wheeled motorcycles, mopeds, types of vehicles similar to motorcycles, mopeds that must be registered and have a license plate issued by a competent state agency (hereinafter collectively referred to as motorcycles).

(7) Automobiles, trailers or semi-trailers pulled by automobiles, kinds of vehicles similar to automobiles that must be registered and have a license plate issued by a competent state agency.

(8) Shells, main chassis, main engines, engine blocks (block) of the property specified in clauses 3, 4, 5, 6, and 7 of Article 3 of Decree 10/2022/ND-CP that are replaced and must be registered with a competent state agency.

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