After buying a house or a vehicle, you will have to go through the procedures for registration of ownership, and must concurrently pay enough registration tax to receive the certificate of ownership. So, what is the registration tax in accordance with Vietnam’s regulations? How to calculate registration tax for cars and motorbikes in 2021? This issue will be answered in detail in the article below.
Article table of contents
- Summary of 31 cases of registration fee exemption in 2021 in Vietnam
- Summary of 31 cases of registration fee exemption in 2021 in Vietnam
1. What is registration tax?
Current legal regulations of Vietnam do not recognize the definition of “registration tax”, this is just a buzzword that is widely used in practice, but legally, this concept is regulated under the name “registration fee”.
According to Clause 2 Article 3 of the Law on Fees and Charges of Vietnam, charges are a fixed amount of money that shall be paid by organizations or individuals for public services for state management provided by regulatory agencies as prescribed in the list of fees and charges enclosed herewith. According to the Appendix issued together with the Law on Fees and Charges of Vietnam, registration fee is one of fees specified by the Government, specifically in Decree No. 140/2016/NĐ-CP of Vietnam’s Government issued on October 10, 2016.
Decree No. 140/2016/NĐ-CP of Vietnam’s Government does not specify the definition of “registration fee”. However, theoretically it can be understood, registration tax or registration fee is a fee that property owners must declare and pay to tax authorities before putting the property into use.
Example: When buying a car or a motorbike, you must pay registration tax to be able to register vehicle ownership.
2. Properties subjected to the registration fee
According to Article 2 of the Circular No. 301/2016/TT-BTC of the Ministry of Finance of Vietnam, properties subjected to the registration fee include:
- Real property:
+ Buildings, including: residential houses, business establishments, constructions for other purposes.
+ Land, including: agricultural and non-agricultural lands, as defined in the Land Law of Vietnam, under the management and use of organizations, households and individuals (regardless of the construction of a structure on such lands).
- Firearms for hunting, training and sporting.
- Ships, including barges, motorboats, tugboats.
- Ships, including yachts, of which the registration of ownership or use with state management agencies is mandatory.
- Aircrafts.
- Two-wheel or three-wheel motorcycles, motor scooters, similar vehicles subject to registration and fitted with number plates issued by competent government authorities (hereinafter referred to as motorcycles).
- Automobiles, trailers or semi-trailers pulled by automobiles, similar vehicles subject to registration and fitted with number plates issued by competent government authorities. The registration charge shall not be levied on the machines and devices that are required to undergo the registration of ownership and issuance of number plate by competent state management agencies though not defined as automobile in the Law of Road Traffic and guiding documents.
- The frame, chassis assembly (referred to as the chassis) and engine assembly of an asset subjected to the registration charge according to Section 3, 4, 5, 6 and 7 of this Article shall be replacements whose numbers differ from the chassis number and engine number of the asset for which the competent state management agency issued a certificate of ownership or right of use.
3. Calculating registration fees for cars in 2021
According to Article 5 of the Decree No. 140/2016/NĐ-CP of Vietnam’s Government, registration fees for cars ars calculated as follows:
Registration fee = Base price x Registration fee rates (%)
In which:
- Base price when buying a car is specified for each type of vehicle in Decision No. 618/QD-BTC amended by Decision No. 1112/QĐ-BTC, Decision No. 2064/QĐ-BTC and Decision No. 452/QĐ-BTC of the Ministry of Finance of Vietnam.
- Registration fee rates (%): According to Clause 5 Article 7 of the Decree No. 140/2016/NĐ-CP of Vietnam’s Government amended by Point a Clause 2 Article 1 of Decree No. 20/2019/NĐ-CP, registration fee rates for each type of cars are as follows:
Note: The maximum fee for registration of a property shall be VND 500 million per property per application, except that payable on 9-seater or smaller automobiles, aircraft and yacht.
4. Calculating registration fees for motorbikes in 2021
Case 1: Buying a new motorbike
* In centrally-affiliated cities, in provincial cities or in towns
According to Article 5 and Point a Clause 4 Article 7 of the Decree No. 140/2016/NĐ-CP of Vietnam’s Government, registration fees for motorcycles registered for the first time under organizations or individuals in centrally-affiliated cities, in provincial cities or in towns where the provincial People's Committee is based, are calculated as follows:
Registration fee = Base price x 5%
* In remaining areas
According to Article 5 and Point a Clause 4 Article 7 of the Decree No. 140/2016/NĐ-CP of Vietnam’s Government, registration fee rates (%) are as follows:
Registration fee = Base price x 2%
Case 2: Re-registration (old motorcycles, inherited motorcycles,etc.)
According to Article 5 and Point b Clause 4 Article 7 of the Decree No. 140/2016/NĐ-CP of Vietnam’s Government, motorcycles chargeable by re-registration fee is calculated as follows:
Registration fee = Base price x 1%
In which, base price for each type of vehicle is specified in Decision No. 618/QD-BTC amended by Decision No. 1112/QĐ-BTC, Decision No. 2064/QĐ-BTC and Decision No. 452/QĐ-BTC of the Ministry of Finance of Vietnam.
>>> View more: Summary of 31 cases of registration fee exemption in 2021 in Vietnam
Le Vy
