Determination of normal market prices for use as a ground for assessment of selling prices and payable tax amounts in Vietnam

Determination of normal market prices for use as a ground for assessment of selling prices and payable tax amounts in Vietnam (Internet image)

Article 4 of Circular 71/2010/TT-BTC stipulates the determination of normal market prices for use as a ground for assessment of selling prices and payable tax amounts in Vietnam. To be specific:

- Principles of determining normal market prices

• Normal market prices will be determined based on the database collected by tax offices on selling prices declared by business establishments with lax offices; price information provided by other state management agencies (customs offices, price appraisal centers under provincial-level Finance Departments and Industry and Trade Departments) and the Vietnam Automobile Manufacturers' Association (VAMA): buying and selling prices of automobiles and motorbikes of the same categories in the same localities or other localities: information collected from consumers; and prices of automobiles or motorbikes published on the mass media such as newspapers, magazines, market bulletins or websites.

- Normal market prices will serve as a ground for the assessment of selling prices and payable tax amounts.

• Normal market prices will be determined based on tables of minimum prices of automobiles and motorbikes used for registration fee calculation which are promulgated by provincial-level People's Committees according to law.

• Provincial-level People's Committees shall promulgate tables of minimum prices of automobiles and motorbikes used for registration fee calculation according to law for use as a ground for the calculation of registration fee for automobiles and motorbikes as well as the assessment of selling prices and payable tax amounts for automobile and motorbike traders specified in Article I of this Circular.

More details can be found in Circular 71/2010/TT-BTC, which comes into force from June 21, 2010.

Nguyen Phu

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