Official Telegram on a 50% reduction of registration fees for domestically manufactured and assembled automobiles in Vietnam

Official Telegram on a 50% reduction of registration fees for domestically manufactured and assembled automobiles in Vietnam (Image from the internet)

On August 30, 2024, the General Department of Taxation issued Official Telegram 06/CD-TCT regarding the implementation of the registration fee rates for automobiles, trailers or semi-trailers towed by automobiles, and similar types of vehicles domestically manufactured and assembled as stipulated in Decree 109/2024/ND-CP dated August 29, 2024.

Official Telegram on a 50% reduction of registration fees for domestically manufactured and assembled automobiles in Vietnam

On August 29, 2024, the Government of Vietnam issued Decree 109/2024/ND-CP stipulating the registration fee rates for automobiles, trailers or semi-trailers towed by automobiles, and similar types of vehicles domestically manufactured and assembled.

In Article 1 of the aforementioned Decree 109/2024/ND-CP, it is stipulated that from September 1, 2024, to the end of November 30, 2024, the registration fee rate will be 50% of the rate prescribed in Decree 10/2022/ND-CP dated January 15, 2022, by the Government of Vietnam which regulates registration fees; and the current Resolutions of the People's Council or current Decisions of the People's Committee of provinces and centrally-run cities on local registration fee rates and any amending, supplementing, or replacing documents (if any).

The General Department of Taxation requests the Tax Departments to proactively propagate and disseminate information to taxpayers in the area and to direct the Tax Branches in the provinces and cities to promptly implement the application of the registration fee rates stipulated in the aforementioned Decree 109/2024/ND-CP to stimulate consumption and continue addressing difficulties for production and business.

Registration fee rates for automobiles in Vietnam as per Decree 10/2022/ND-CP

According to Clause 5 of Article 8 of Decree 10/2022/ND-CP, the registration fees for automobiles in Vietnam are as follows:

- For automobiles, trailers or semi-trailers towed by automobiles, and similar types of vehicles: the rate is 2%.

Except:

- Automobiles carrying up to 9 passengers (including passenger cars pick-up trucks): first-time registration fee rate is 10%. In cases where higher rates are required to match the local conditions, the provincial or centrally-run city People's Council shall decide on adjusting the increase, but not more than 50% of the general rate prescribed in Decree 10/2022/ND-CP.

- Pickup trucks carrying goods with a permitted load of under 950 kg and up to 5 seats, and VAN trucks with a permitted load of under 950 kg pay a first-time registration fee rate at 60% of the first-time registration fee rate for passenger cars from 9 seats and under.

- Battery electric cars:

+ Within 3 years from the effective date of this Decree: first-time registration fee rate is 0%.

+ During the next 2 years: first-time registration fee rate is 50% of the rate for gasoline or diesel cars with the same number of seats.

- Automobiles specified at points a, b, and c Clause 5, Article 8 of Decree 10/2022/ND-CP: second-time registration onwards fee rate is 2%, applied uniformly nationwide.

Based on the type of vehicle indicated in the Certificate of Technical Safety and Environmental Protection issued by the Vietnamese registration authority, the tax authority determines the registration fee rate for automobiles, trailers, or semi-trailers towed by automobiles, and similar types of vehicles according to the above regulations.

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