Officially Reduce 50% Registration Fee for Domestically Manufactured and Assembled Automobiles from September 01, 2024, to November 30, 2024
Official Reduction of 50% Registration Fee for Domestically Manufactured and Assembled Automobiles from September 1, 2024, to November 30, 2024?
On August 29, 2024, the Government of Vietnam issued Decree 109/2024/ND-CP stipulating the reduction of the registration fee for automobiles, trailers, or semi-trailers towed by automobiles and similar types of vehicles manufactured and assembled domestically.
Decree 109/2024/ND-CP takes effect from September 1, 2024.
Article 1 of Decree 109/2024/ND-CP prescribes a reduction of 50% in the initial registration fee for automobiles, trailers, or semi-trailers towed by automobiles and similar types of vehicles manufactured and assembled domestically compared to the regulated fee.
From December 1, 2024, onwards: The registration fee collection rate will continue to be implemented according to Decree 10/2022/ND-CP of the Government of Vietnam governing registration fees; the current resolutions of the People's Councils or the current decisions of the provincial and central city People's Committees regarding the registration fee collection rate in localities, and amended, supplemented, and replacement documents (if any).
Official Reduction of 50% Registration Fee for Domestically Manufactured and Assembled Automobiles from September 1, 2024, to November 30, 2024 (Image from Internet)
What is the Registration Fee for Automobiles, Trailers, or Semi-Trailers Towed by Automobiles and Similar Vehicle Types?
According to Article 8 of Decree 10/2022/ND-CP, the registration fee collection rate for automobiles, trailers, or semi-trailers towed by automobiles and similar vehicle types is 2%, except for the following cases:
- Passenger automobiles with 9 seats or less (including pick-up cars) pay an initial registration fee at a rate of 10%.
In cases where a higher collection rate is necessary to suit the actual conditions of each locality, the People's Council of the province or central city may decide to adjust the increase, but not exceeding 50% of the general regulated collection rate.
- Pick-up trucks carrying goods with a permissible transport weight of less than 950kg and with 5 seats or less, and VAN trucks with a permissible transport weight of less than 950kg pay an initial registration fee at a rate of 60% of the initial registration fee for passenger automobiles with 9 seats or less.
- Battery-electric automobiles:
+ Over a period of 3 years from the effective date of this Decree: pay an initial registration fee at a rate of 0%.
+ For the next 2 years: pay an initial registration fee at a rate of 50% of that for gasoline- or diesel-powered automobiles with the same number of seats.
- The aforementioned types of automobiles: pay a second and subsequent registration fee at a rate of 2%, uniformly applied nationwide.
On What Basis Does the Tax Authority Determine the Registration Fee for Automobiles?
According to Clause 2, Article 4 of Circular 13/2022/TT-BTC, the registration fee collection rate is regulated as follows:
Article 4. Registration Fee Collection Rate
The registration fee collection rate is implemented according to Article 8 of Decree 10/2022/ND-CP. The registration fee collection rate for automobiles and motorcycles is detailed as follows:
[...]
- Automobiles, trailers, or semi-trailers towed by automobiles, similar types of vehicles: follow the collection rate prescribed in Clause 5, Article 8 of Decree 10/2022/ND-CP.
a) Based on the type of vehicle, the permissible transport weight recorded in the quality safety and environmental protection certificate, or the inspection certificate issued by the Vietnamese registration authority, the tax authority determines the registration fee collection rate for automobiles, trailers, or semi-trailers towed by automobiles, similar types of vehicles according to the regulations in this clause.
b) The tax authority determines the registration fee collection rate for automobiles based on:
- The number of seats in the automobile according to the manufacturer's design.
- The permissible transport weight according to Clause a, Article 2 of this Circular.
- The type of vehicle determined as follows:
+ For imported vehicles: Based on the determination of the registration authority recorded in the "Type of vehicle" section of the quality safety and environmental protection certificate for imported motor vehicles, the notice of exemption from technical safety and environmental protection inspection for imported motor vehicles, or the inspection certificate issued by the Vietnamese registration authority.
+ For domestically manufactured and assembled vehicles: Based on the "Type of vehicle" section recorded in the quality safety and environmental protection certificate for domestically manufactured and assembled automobiles or the pre-inspection certificate used for motor vehicles, or the inspection certificate.
In cases where the "Type of vehicle" (vehicle type) section in the aforementioned documents does not determine it as a truck, the registration fee collection rate for passenger automobiles applies.
[...]
Thus, the tax authority determines the registration fee collection rate for automobiles based on the following criteria:
- The number of seats in the automobile as designed by the manufacturer.
- The permissible transport weight according to Clause a, Article 2, of Circular 13/2022/TT-BTC.
- The type of vehicle determined as follows:
+ For imported vehicles: Based on the determination of the registration authority recorded in the "Type of vehicle" section of the quality safety and environmental protection certificate for imported motor vehicles, the notice of exemption from technical safety and environmental protection inspection for imported motor vehicles, or the inspection certificate issued by the Vietnamese registration authority.
+ For domestically manufactured and assembled vehicles: Based on the "Type of vehicle" section recorded in the quality safety and environmental protection certificate for domestically manufactured and assembled automobiles or the pre-inspection certificate used for motor vehicles, or the inspection certificate.
In cases where the "Type of vehicle" (vehicle type) section in the aforementioned documents does not determine it as a truck, the registration fee collection rate for passenger automobiles applies.
