Vietnam: How much is the car registration fee in 2018?

Regarding the rate of registration charge, Circular No. 301/2016/TT-BTC of the Ministry of Finance of Vietnam stipulates that the first-time fee for cars other than passenger cars (including cargo pick-ups and vans) is 2% (the identification of passenger cars and other cars to determine registration fee rates is based on the Certificate of technical safety and environmental protection quality issued by the registry agency).

Passenger automobiles with 09 seats or less, which incur the rate of initial registration charge at 10%. If such rate is subject to increase according to local circumstances, the People’s Council of the relevant province or central-affiliated city shall stipulate an increment that shall not exceed 50% of the general rate.

Passenger automobiles with 9 seats or less, which incur the nationwide rate of re-registration charge at 2%.

Currently, used car registration fees are calculated based on 3 factors: 100% new car value according to general regulations of the Ministry of Finance, the remaining quality ratio of the vehicle is calculated based on years of use and a 2% fee applies to used vehicles nationwide.

According to Circular No. 301/2016/TT-BTC, the remaining quality rate of a used car (also known as the car's depreciation rate) is calculated according to the vehicle's useful life, from the year of production/import to the year of registration fee declaration.

Tax authorities shall consider the type of vehicle specified in the certificate of technical safety and quality and environment protection as issued by Vietnamese registry agencies to determine the registration charge payable on automobiles, trailers or semi-trailers pulled by automobiles and similar vehicles pursuant to this Section.

Tax authorities shall determine the rate of registration charge on an automobile according to:

- The quantity of seats on the automobile as per the manufacturer’s design.

- The type of the automobile, which is determined as follows:

The type of an imported automobile shall accord with the registry agency’s input in the "Vehicle type” section on the certificate of technical safety and quality and environment protection for imported motor vehicles or to the Vietnamese registry agency's notice of exemption from inspection of technical safety and quality and environment protection for imported motor vehicles;

The type of an automobile produced or assembled domestically shall accord with the “Vehicle type” section on the certificate of technical safety and quality and environment protection for automobiles produced or assembled or the sheet of quality inspection for factory release of motor vehicles.

If the automobile is not identified as a cargo vehicle in the “Vehicle type” section on the said documents, the rate of registration charge on passenger automobiles shall apply.

If the police divisions issuing vehicle registration plates, when inspecting a vehicle, detects the incorrect identification as cargo vehicle or passenger vehicle, which leads to the inaccurate levy of registration charge, on the certificate of technical safety and quality and environment protection, the Vietnamese registry agency’s notice of exemption from inspection of technical safety and quality and environment protection  for imported motor vehicle or the sheet of quality inspection for factory release of motor vehicle, they shall promptly notify the relevant registry agency to re-determine the type of such vehicle before issuing the number plate.

If the re-calculation of the rate of registration charge is consequential to a registry agency’s re-determination of the vehicle type, the relevant police division shall send the dossier with written evidence to the relevant tax authority that issues that notice of registration charge pursuant to regulations.

Transferee shall declare and pay the import duty, excise tax and value added tax pursuant to regulations and pay the registration charge at the initial registration rate defined by the People’s Council of provinces or central-affiliated cities upon the transfer of an automobile owned by a foreign entity and fitted with a diplomatic, foreign or international number plate as stated in Section 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of Vietnam’s Government to another organization or individual in Vietnam (except those defined in Section 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of Vietnam’s Government).

The base price in such situation shall be the remaining value of the asset, which is determined pursuant to Article 3 of this Circular upon the declaration of the registration charge.

Transferee shall declare and pay the registration charge at the rate of 2% upon registering the ownership of an automobile fitted with a foreign number plate and owned by a foreigner (except those defined in Section 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of Vietnam’s Government), who previously declared and paid the initial registration charge before transferring it to another organization or individual in Vietnam.

The amount of registration charge payable to the state budget is determined as follows:

The amount of registration charge on an asset defined in this Article shall not exceed VND 500 million per asset per application, except passenger automobiles with 09 seats or less, aircrafts and yachts.

Source: Viet Nam Moi

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