Agreement on a 50% reduction of registration fees for automobiles for 3 months in Vietnam

Agreement on a 50% reduction of registration fees for automobiles for 3 months in Vietnam (Internet image)

On August 15, 2024, the Office of the Government of Vietnam issued Notification 384/TB-VPCP regarding the Conclusion of the Permanent Government of Vietnam at the meeting on the reception and explanation of the comments from Government members regarding the Draft Decree stipulating the registration fee for domestically manufactured and assembled automobiles.

Agreement on a 50% reduction of registration fees for automobiles for 3 months in Vietnam

Specifically, after hearing the report from the Ministry of Finance, the opinions of the meeting participants, and the remarks of the Deputy Prime Ministers, the Permanent Government of Vietnam concluded as follows:

- Agree to implement a 50% reduction in the registration fee for domestically manufactured and assembled automobiles for 3 months (instead of a 6-month reduction as previously reported and requested for Government opinion).

- Assign:

+ Ministry of Finance:

++ Incorporate the consensual comments at the meeting as mentioned in point 1, promptly complete the content for receiving, explaining the Government member comments, and the draft Decree, reporting to the Government of Vietnam no later than August 15, 2024.

++ Gather the second round of comments from Government members to finalize the draft Decree, submit it to the Prime Minister for signing before August 18, 2024.

+ Office of the Government of Vietnam promptly seek Government member opinions on the above content upon receiving the report from the Ministry of Finance as mentioned in point a.

+ Ministry of Industry and Trade, in collaboration with relevant Ministries, agencies, and localities, promptly research and propose suitable, feasible, and effective policies to encourage the production and use of electric vehicles in Vietnam, reporting to authorized levels in September 2024.

+ Ministry of Construction, in collaboration with Ministry of Justice, Ministry of Industry and Trade, Ministry of Transport, and relevant agencies, promptly review existing legal regulations to propose amendments and supplements to promptly resolve arising issues related to the installation of charging stations at gas stations, reporting to authorized levels in August 2024.

See the detailed content at Notification 384/TB-VPCP issued on August 15, 2024.

Registration fee rates for automobiles in Vietnam

The registration fee rate for automobiles is 2%.

Specifically:

(i) automobiles transporting up to 9 passengers (including pick-up trucks): pay an initial registration fee of 10%. If a higher rate is needed to suit local conditions, the provincial and city People's Councils under central authority decide to increase but not exceed 50% of the general rate stipulated herein.

(ii) Pick-up trucks with a permitted transportation capacity of less than 950 kg and less than 5 seats, VAN trucks with a permitted transportation capacity of less than 950 kg pay an initial registration fee at 60% of the first registration fee for passenger automobiles under 9 seats.

(iii) Battery electric automobiles:

- For 3 years from the effective date of this Decree: the initial registration fee is 0%.

- In the 2 following years: the initial registration fee is 50% of the rate for gasoline and diesel automobiles with the same seating capacity.

(iv) The vehicle types mentioned in (i), (ii), (iii): pay the subsequent registration fees at 2% uniformly nationwide.

Based on the type of vehicle recorded in the Certificate of Safety and Environmental Protection by the Vietnam Register, the tax authority determines the registration fee rate for automobiles, trailers, and semi-trailers pulled by automobiles, and other vehicles similar to automobiles as regulated in this section.

(Clause 5, Article 8 Decree 10/2022/ND-CP)

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