Proposal to reduce the registration fee for domestically manufactured cars from August 1, 2024 in Vietnam

How much is the proposed reduction in registration fees from August 1, 2024 for domestically manufactured cars in Vietnam?

According to Article 1 of the Draft Decree regulating the registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles produced and assembled domestically, the proposed provisions are as follows:

Initial registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles produced and assembled domestically:

1. From the effective date of this Decree until January 31, 2025: The registration fee shall be 50% of the fee prescribed in Government Decree 10/2022/ND-CP dated January 15, 2022, on registration fees, current resolutions of the People's Councils or current decisions of the Provincial People's Committees regarding local registration fees, and any amending or supplementary documents (if any).

2. From February 1, 2025 onwards: The registration fee shall continue to be implemented according to the provisions of Government Decree 10/2022/ND-CP dated January 15, 2022, on registration fees, current resolutions of the People's Councils or current decisions of the Provincial People's Committees regarding local registration fees, and any amending or supplementary documents (if any).

According to Article 2 of the Draft Decree regulating the registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles produced and assembled domestically, if approved, this Decree will be effective from August 1, 2024, to January 31, 2025.

Therefore, it is expected that the registration fee for domestically manufactured cars will be reduced by 50% from August 1, 2024, until January 31, 2025.

Proposal to reduce the registration fee for domestically manufactured cars from August 1, 2024 in Vietnam - image from internet

What are regulations on determination of the registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles according to Decree 10/2022/ND-CP in Vietnam?

According to Clause 5, Article 8 of Decree 10/2022/ND-CP, the registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles is determined as follows:

The fee rate is 2%.

Specifically:

- Passenger cars with less than 9 seats (including pick-up trucks): The initial registration fee is 10%. If it is necessary to apply a higher fee rate to align with the actual conditions in each locality, the Provincial People's Councils or the Municipal People's Committees under the central government may decide to adjust the fee rate, but it should not exceed 50% of the general fee rate at this point.

- Pick-up trucks for goods transportation with a permissible gross weight of less than 950 kg and having less than 5 seats, and VAN trucks with a permissible gross weight of less than 950 kg: The initial registration fee is 60% of the fee rate for passenger cars with less than 9 seats.

- Electric cars powered by battery:

+ Within 3 years from the effective date of this Decree: The initial registration fee is 0%.

+ Within the following 2 years: The initial registration fee is 50% of the fee rate for gasoline or diesel cars with the same seating capacity.

- Other types of vehicles specified in point a, point b, point c of this clause: From the second registration onwards, the fee rate is 2% and is applied uniformly nationwide.

Based on the vehicle type stated in the Certificate of Quality, Technical Safety, and Environmental Protection issued by the Vietnamese registration agency, the tax authority determines the registration fee for cars, trailers, semi-trailers towed by cars, and similar vehicles according to the provisions in this clause.

What are regulations on determination of the amount of registration fees for cars by the tax authority in Vietnam?

According to Clause 2, Article 4 of Circular 13/2022/TT-BTC, the tax authority determines the registration fee for cars based on the following:

- The number of seats in the car is determined according to the manufacturer's design.

- The permissible gross weight is determined based on the vehicle type and the permissible gross weight stated in the Certificate of Quality, Technical Safety, and Environmental Protection, or the inspection certificate issued by the Vietnamese registration agency.

- The vehicle type is determined as follows:

+ For imported cars: Based on the determination of the registration agency stated in the "Vehicle Type" section of the Certificate of Quality, Technical Safety, and Environmental Protection for imported motor vehicles, or the Notice of Exemption from Quality, Technical Safety, and Environmental Protection Inspection for imported motor vehicles, or the inspection certificate issued by the Vietnamese registration agency.

+ For domestically produced or assembled cars: Based on the "Vehicle Type" section stated in the Certificate of Quality, Technical Safety, and Environmental Protection for domestically produced or assembled motor vehicles, or the Quality Inspection Certificate for motor vehicles, or the inspection certificate issued by the Vietnamese registration agency.

In cases where the "Vehicle Type" (vehicle category) in the aforementioned documents does not specify a truck, the registration fee rate for passenger cars is applied.