Regulations on management and use of auction revenues from motor vehicle license plates in Vietnam

Regulations on management and use of auction revenues from motor vehicle license plates in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on management and use of auction revenues from motor vehicle license plates in Vietnam

According to Article 22 of Decree 39/2023/ND-CP, regulations on management and use of auction revenues are as follows:

- The Ministry of Public Security shall open collection accounts at banks, foreign bank branches to collect winning bid. Interests (if any) of balance of collection account of the Ministry of Public Security shall be submitted to the state budget.

- Revenues generated by auctioning license plates minus organizing costs (hereinafter referred to as “auction revenues”) and interests (if any) of balance of collection accounts of the Ministry of Public Security shall be declared, submitted, and finalized with tax authority. Tax authority shall manage declaration, submission, and finalization of the revenues in accordance with tax laws.

+ The Ministry of Public Security (or agencies assigned by the Ministry of Public Security to manage collection and submission of auction revenues) must declare and submit auction revenues of the previous month to tax authority (using form No. 01/DG attached to Decree 39/2023/ND-CP) by the end of the 20th of each month.

Form No. 01/DG

The Ministry of Public Security (or agencies assigned by the Ministry of Public Security to manage collection and submission of auction revenues) shall finalize auction revenues on an annual basis (using Form No. 02/DG attached to Decree 39/2023/ND-CP) in accordance with tax administration laws;

Form No. 02/DG

+ Auction revenues shall be entirely submitted to central government budget;

+ Interests (if any) of balance of collection account of the Ministry of Public Security and auction revenues of the month shall be submitted to the state budget;

+ The Ministry of Public Security is responsible for determining and approving auction organizing costs which serve as the basis for determining auction revenues submitted to the state budget.

- When producing annual state budget estimates, depending on actual progress and expenditure demand, the Ministry of Public Security shall develop estimates equivalent to 30% of auction revenues submitted to the state budget in the previous year for the purpose of maintaining traffic order and safety, preventing and fighting crime, investing in infrastructure, providing training for officials in charge of registration and management of road vehicles, maintaining security and order, submitting to the Ministry of Finance to request competent authority to allocate funding for implementation in annual state budget estimates of the Ministry of Public Security in accordance with the Law on State Budget and relevant law provisions.

- In addition to Clauses 1, 2, and 3 of Article 22 of Decree 39/2023/ND-CP, the management and use of auction revenues must also comply with state budget laws, fee and charge laws, and relevant law provisions.

2. Regulations on refund of winning bid of motor vehicle license plates in Vietnam

Pursuant to Article 23 of Decree 39/2023/ND-CP regulations on refunds for winning car license plate auctions as follows:

- If auction winners have not registered won license plates attached to vehicles within 12 months from the date on which written confirmation of won license plates or documents on extension of registration time limit due to force majeure or objective hindrance, the Ministry of Public Security shall send notice to address registered by auction winners in auction registration.

If auction winners decease, legitimate heirs of the auction winners shall receive refund of the winning bid (minus auction organizing costs as per the law and without interests) as per the law.

- Application for winning bid refund consists of:

+ Written application for refund of license plate winning bid;

+ Documents acknowledging inheritance or documents on distribution of inheritance notarized as per the law;

+ Written confirmation of won license plates;

+ Power of attorney (if any);

+ Citizen ID Cards of co-heirs.

- Within 15 days from the date on which adequate application for refund is received, the Ministry of Public Security is responsible for refunding winning bid to legitimate heirs of auction winners as follows:

+ If the winning bid has not been submitted to the state budget: Refund shall be made from collection account of the Ministry of Public Security in banks, foreign bank branches;

+ If the winning bid has been submitted to the state budget: the Ministry of Public Security is responsible for examining and cross-checking refund application against proof of payment made to the state budget and if the results are appropriate, the Ministry of Public Security shall promulgate decision on refund, produce refund order for state budget revenues, and transfer to State Treasury where submission to the state budget is made in order to refund.

Ho Quoc Tuan

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