What are regulations on proposal to reduce vehicle registration fees in May 2024 in Vietnam? Are motor vehicles subject to registration fees in Vietnam?

What are regulations on proposal to reduce vehicle registration fees in May 2024 in Vietnam?

According to Directive 12/CT-TTg dated April 21, 2024, the Prime Minister urgently directed the Ministry of Finance to study and propose to the Government and the Prime Minister in May 2024 the extension of tax deadlines and reduction of vehicle registration fees for domestically produced and assembled cars, as well as the reduction of land and water rental fees.

In addition, Directive 12/CT-TTg also required the Ministry of Industry and Trade to proactively implement measures within its authority and regulations to ensure sufficient supply of electricity, petrol, and oil for production, business, and consumption of the people and enterprises, and to absolutely avoid power shortages or disruptions in all situations.

The State Bank of Vietnam continues to direct the reduction of lending interest rates and proactively implement measures to manage credit growth, enhance the access to capital for the economy in an effective, feasible, and timely manner. It also promotes the disbursement of the 120 trillion VND credit package for investors and homebuyers of social housing projects.

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Reference: https://xaydungchinhsach.chinhphu.vn/khan-truong-trinh-nghi-dinh-moi-ve-kinh-doanh-xang-dau-de-xuat-gia-han-thue-giam-le-phi-truoc-ba-o-to-tien-thue-dat-119240422043448982.htm

What are regulations on proposal to reduce vehicle registration fees in May 2024 in Vietnam? Are motor vehicles subject to registration fees in Vietnam? - image from internet

Are motor vehicles subject to registration fees in Vietnam?

Pursuant to Clause 7 Article 3 of the Decree 10/2022/ND-CP stipulating property subject to registration fees:

Property subject to registration fees

1. Houses, land.

2. Hunting guns; guns used for training or sports.

3. 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.

4. Boats including yachts.

5. Aircraft.

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

7. 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 agencies.

8. Frame, chassis assembly, engine assembly, and engine block of the property prescribed in Clauses 3, 4, 5, 6, and 7 of this Article, when replaced, subject to registration with competent state agencies.

The Ministry of Finance shall stipulate this Article in detail.

As regulated above, motor vehicles are subject to registration fees in Vietnam.

What are bases price for motor vehicles in Vietnam?

Pursuant to Clause 3 Article 7 of the Decree 10/2022/ND-CP, the bases price for motor vehicles in Vietnam shall be the price in the decision on the table of base price promulgated by the Ministry of Finance.

(1) A base price in the Table of base prices is determined on the principle that it is relevant to the existing market price at the time of development of the Table of base prices.

The existing market price for each type of motor vehicle, motorcycle is based on the following database.

- Regarding domestically sold and purchased properties, the price specified in the legal sales invoice or receipt in accordance with regulations of laws on invoices and receipts, including value added tax (if any).

- Regarding domestically manufactured properties, the price notified by the genuine manufacturer.

- Regarding self-manufactured or manufactured by hired units properties, the selling price of the property of same or equivalent type, including excise tax (if applicable) and/or value added tax (if applicable). If such a property does not have the selling price of the property of same or equivalent type as its product price, plus (+) excise tax (if applicable), plus (+) value added tax (if applicable).

- Regarding imported properties (including imported used properties), the dutiable value in accordance with regulations of law on customs plus (+) import tax (if applicable), plus (+) exercise tax (if applicable) and plus (+) value added tax (if applicable); or on the price notified by the authorized importer on behalf of the foreign production or assembly enterprise. If the import tax is exempt in accordance with regulations, the base price shall include the exempted import tax.

(2) Regarding a new type of motor vehicle or motorcycle which has not yet been included in the Table of base prices at the time of submission of the registration fee declaration, the tax agency shall, based on the database mentioned in Clause 2 of the Decree 10/2022/ND-CP, decide the base price for such motor vehicle or motorcycle.

(3) If a new type of motor vehicle or motorcycle has not yet been included in the Table of base prices or a motor vehicle or motorcycle has been included in the Table of base prices but its existing market price is increased or decreased by at least 5% compared to the price prescribed in the Table of base prices, the Department of Tax of the province shall submit a consolidated report on prices to the Ministry of Finance before the 5th day of the last month of the quarter.

The Ministry of Finance shall issue a decision on an amended Table of base prices before the 25th day of the last month of the quarter in order to apply it from the 1st day of the following quarter.

The amended Table of base prices is issued in accordance with regulations on issuance of the Table of base prices or on the basis of the arithmetic mean of the base price of the local tax agencies.

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