Circular No. 197/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance guiding regulation on collection, payment, management and use of road use charges by unit of vehicle

CIRCULAR

GUIDING REGULATION ON COLLECTION, PAYMENT, MANAGEMENT AND USE OF ROAD USE CHARGES BY UNIT OF VEHICLE

Pursuant to the Law on Road Traffic dated November 13, 2008;

Pursuant to the Ordinance on Charges and Fees dated August 28, 2001;

Pursuant to the Decree No. 57/2002/ND-CP dated June 03, 2002 of the Government detailing the implementation of the Ordinance on Charges and Fees; Decree No. 24/2006/ND-CP dated March 06, 2006 amending and supplementing a number of articles of Decree No. 57/2002/ND-CP dated June 03, 2002;

Pursuant to the Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Decree No. 18/2012/ND-CP dated March 13, 2012 of the Government on the Road Maintenance Fund;

At the proposal of the Director of Tax Policy Department

The Minister of Finance issues Circular guiding regulation on rates, collection and remittance, management and use of road use charges by unit of vehicle as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment

This Circular guiding regulation on rates, collection, remittance, management and use of road use charges by unit of vehicle (hereafter referred to as road use charges) specified in Decree No. 18/2012/ND-CP dated March 13, 2012 of the Government on the Road Maintenance Fund.

This Circular does not apply to special use vehicles as prescribed in Clause 20, Article 3 of the Law on road traffic.

Article 2. Subjects to charges

1. Road motorized vehicles, including: cars, tractors; trailers, semi-trailers pulled by cars, tractors (hereinafter referred to as car) and two-wheelmotor-bike, three-wheel motor-bike (hereinafter referred to as motor-bike) subject to road use charges.

2.Cars subject to road use charges specified in clause 1 of this Article shall not be subject to road use charges in the following cases:

a) Damaged by accident or natural disaster;

b) Confiscated

c)Having accident so serious that they can not continue to circulate and msut be repaired for 30 days or more.

3.Cases stated in clause 2 of this Article, if one car has been paid road use charges, the vehicle owner shall be refunded the charges paid (applies to cars destroyed and confiscated notallowed for further circulation) or deducted from the amount of charges payable in the subsequent period (applies to cars allowed for circulation after repair) corresponds to the time not using the road if having enough record specified in Article 9 of this Circular.

4.Not applying clause 2 of this Article for the cars of the national defense forces and police forces and foreign vehicles temporarily imported for circulation in Vietnam.

Article 3. Free cases

Free use of road for the following cases

1.Ambulances

2. Fire engines

3. Vehicles used for funeral.

4.Vehicles used for national defense include road motor vehicles with number plates: red background, white letters and numbers engraved and fitted with specialized equipment for national defense (vehicle carrying armed forces operating known as car with 12 seats or more, trucks with seats installed in the body, bearing red number plate).

5.Vehicles specially used for security (cars) of the police forces (Ministry of Public Security, Public Security of provinces, districts, etc.) include:

a) Patrol car police for traffic control of traffic police with characteristics: On the roof of the car with rotating lights and on two sides of the car body printed with the words: "TRAFFIC POLICE ".

b)113 police car printed with the words:”POLICE 113” on two sides of car body.

c) Mobile police car printed with the words “ MOBILE POLICE” on two sides of car body.

d) Truck with roof and seats fitted in the body carrying the police force on duty.

đ) Specialty vehicle carrying prisoners, rescue and salvage car.

6. Motor-bike of national defence and public security forces.

7.Motor-bikes of vehicle owners of the poor households as prescribed by law on the poor households.

Article 4. Charge payer

Organizations and individuals own, use or manage vehicles (hereinafter referred to as the vehicle owner) specified in Article 2 of this Circular is the person who makes payment of road use charges.

Chapter II

SPECIFIC REGULATION

Article 5.Charge rate

The rate of road use charges is in accordance with the Table of charge rate in Appendix 01 issued together with this Circular.

Article 6. Method of collection and remittance of charges

1. For car

1.1. Period of charge calculation and time for declaration and payment of charges.

a) For cars of organizations and individuals registered in Vietnam (except ones of the police and national defence forces specified at point (c) of this clause)

Road use charges per year (12 months) and the vehicle registration period. The vehicle owners shall make payment of road use charges to theRegistry upon vehicle registration. The Registry shall stamp for the payment of road use charges corresponding to the payment time of charges, particularly as follows:

a.1) For cars with registration period of 01 years or less: the vehicle owner shall pay road use charges for the entire registration period and be stamped for the payment of road use charges corresponding to the time to pay charges.

Example 1: Mr. A ‘s car has registration period of 6 months (fromJanuary 01, 2013 to June 30, 2013). On January 01, 2013, Mr. A takes his car to the registry and make payment of road use charges to the Registry. The Registry shall carry out registration and collect road use charges and issue stamp for payment of 6-month road use charges.

a.2) For car with registration circle of over 01 year (18, 24 and 30 months): the vehicle owner shall make payment of road use charges by year (12 months) or entire registration circle (18, 24 and 30 months)

In case of payment charges by registration circle (18, 24 and 30 months): the Regisry shall issue stamp for the payment of road use charges corresponding to registration time.

In case of payment of charges by year (12 months): the Registry shall issue stamp for the payment of road use charges corresponding to registration time of 12 months. When the time limit (12 months) for charge payment is over, the vehicle owner must go the Registry to make payment of charge and is issued stamp for the the charge payment of the subsequent time (12 months or the remaining time of the registration period)

Example 2: Mr. B’s has registration period of 30 months (fromJanuary 01, 2013 to June 30, 2015). On January 01, 2013, Mr. B takes his car to the Registry. Mr. B has the option to make payment of charge of 01 year (12 months) or the entire registration period (30 moths).

In case Mr. B makes payment for the entire of registration period and is issued stamp for payment of road use charges of 30 months.

If Mr. B chooses to pay annual charges: the Registry shall issue stamp for payment of road use charges of 12 months. Upon ending of 12 months, on January 01, 2014, Mr. B has to come to pay road use charges for the next 12 months (or can pay for the remaining time of the registration period of 18 months) and is issued stamp for the payment of road use charges for the corresponding time of charge payment (12 or 18 months). If making charge payment for 12 months, until January 01, 2015, Mr B has to come to pay for the remaining period of 6 months (from January 01, 2015 to June 30, 2015) and is issued stamp of 6-month charge. On July 01, 2015, Mr. B registers his car and pays charges for the next period.

a.3) Where the vehicle owner comes to register earlier or later than the time regulated by the registration period, the Registry shall check the car and calculate the road use charges connecting from the end of the period already paid the previous road use charges. Where the time to calculate charge is not in round month, the charges payable shall be calculated by the number of odd days divided by 30 days and multiplied by the charge rate of 1 month.

Example 3: In case of early registration, Mr. C’s car has registration period of 6 months fromMarch 01, 2013 to August 31, 2013. On March 01, 2013, Mr. C takes his car to the registry and makes charge payment for 06 months. Periodically, on September 01, 2012, Mr. C shall come to the registry for his car regisration but for some reason on August 20, 2013, Mr. C takes his car to the Registry and makes charge payment (making registration 10 days earlier).

The Registry shall implement registration of vehicles and issue registration stamp for the next 6 month period from August 20, 2013 to February19, 2014. Because Mr. C has to pay charges up to the date of September 01, 2013, the Registry shall calculate and collect road use charges from September 01, 2013 to February 19, 2014 (5 months 20 days), specifically as follows:

Charge payable = 5 months x 180,000 VND / month + (20/30 days) month x 180,000 VND / month = VND 1,020,000.

Example 4: For cases of late registration, also the assumptions as in case of Example 3 said above but until September 15, 2013, Mr. C takes his car to the Registry (making registration 15 days late).

The Registry shall check and issue registration stamp for 6 months from September 15, 2013 to March 14, 2014. Because Mr. C just pays charges to September 01, 2013, so the Registry shall calculate and collect use charges from September 01, 2013 to March 14, 2014 (6 months 15 days) as follows:

Charges payable = 6 months x 180,000 VND / month + (15/30 days) month x 180,000 VND / month =  VND1,170,000.

a.4) For vehicle registered before January 01, 2013 (effective date of the Circular), then:

Where the next registration period arising during the time from January 01, 2013 to December 31, 2013, the vehicle owner shall come to make registration and payment for the time from January 01, 2013 to the next registration period.

Where the next registration period arising after December 31, 2013, until June 30, 2013 at the latest, the vehicle owner must go to the Registry to pay charges for the period from January 01, 2013 to December 31, 2013 or until the subsequent registration period.

Example 5: Mr. D has his car registered on February 01, 2012, the registration period is 12 months, until February 01, 2013, Mr. D comes to the Registry to pay charges for the period from January 01, 2013 to January 31, 2014 (13 months).

Example 6: Mr. M has his car registered on September 01, 2012, the registration period is 30 months, on June 30, 2013 at the latest, Mr. M shall go to the Registry to pay charges. Mr. M may choose to pay charges for 12 months (from January 01, 2013 to December 31, 2013) or pay for the remaining time of the registration period (27 months). In case Mr. M pays charges for 12 months, until January 01, 2014, Mr. M must go to the Registry to pay charges for the next period.

a.5)Where thevehicle owner hasnot paid the road use charges of the previous registration period by time limit specified, then in addition to the charges payable for the next period, the vehicle owner also has to pay the charges not paid for the previous period. The Registry shall collect the arrears payable for the previous period, the charges payable is equal to the charge rate of 01 month multiplied by the time of late payment.

b) For cars imported and circulating in Vietnam

The charge period is the period of time allowed for circulation in Vietnam. The time of charge payment is when filing record to request import for circulation in Vietnam.

Example 7: Mr. E is the owner of a car under 10 seats imported into Vietnam from July 10 to the end of July 19, 2013. When filing for import, the road use charges shall be paid as follows: 10/30 days x 180,000 dong/30 days = VND 60,000.

c) For cars of the national defense forces and security: the charges paid by year and the collection rate specified in the Table of charge rate at Appendix 01 issued together with this Circular.

1.2. Declaration and payment of charges

a)For cars specified at Item a, Point 1.1 of this Clause: Thecharge payermust make declaration under Form No. 01/TKNP in Annex No. 03 issued together with this Circular and make charge payment to the Registry.

b)For temporarily imported foreign cars in circulation in Vietnam: The charge payer must make declaration under Form No. 01/TKNP in Annex No. 03 issued together with this Circular and make charge payment to the Service of Transport upon each arising time.

c)For cars of the police and national defence forces, the road use charge shall be paid in accordance with the following provisions:

c.1)Annually, the Ministry of Defense, Ministry of Public Security shall set up the expected number and type of tickets "national road charges" in need of use and send them to the central road maintenance fund (the Fund Office).

c.2)The Fund Office shallprint andissue tickets "National road charges" applies particularly for national defense and police vehicles.

c.3)The Ministry of Defence and the Ministry of Public Security shall buy​​tickets of " National road charges " at the Fund Office in accordance with the following procedures:

When the time to buy tickets comes, the ticket buyer shall bring a letter of recommendation of the Ministry of Defense and the Ministry of Public Security specifying name and position of the ticket buyer, number and type of tickets to be bought together with the identity card to the Fund Office to buy tickets.

The Fund Office shall provide the ticket buyer the number and type of tickets of "National road charges" as required. On the basis of the number of tickets issued, the Office Fund is responsible for organizing the collection of road use charges for national defense and police vehicles and makingremittance to the account of central road maintenance Fund account opened at the State Treasury.

1.3. Document of charge collection

a) Thecharge collecting authority must make and issue receipts of charge collection as prescribed.

For charge collection for motor-bikes, use receipt under Form in Appendix 02 issued together with this Circular. The charge collection unit can print itself, order to print or buy receipt of the tax authorities.

b) For thenational defense and police vehicles, upon charge collection, the charge collecting authority shall issue Receipt and ticket of "National road charges".

Tickets particularly apply to thenational defense and police vehicles with the heading "National road charges". Thenational defense and police vehicleshaving ticket of "National road charges" means the road use charges have been paid by vehicle unit valued at par value issued together with this Circular and for all toll stations in the country (regardless of the toll station in the form of BOT and other forms of investment).

The ticket content of "National road charges" applies to the national defence vehicles including: The issuance agency (Fund Office),type of vehicle including two types: ticket for military car and ticket for military truck (not detailing in tonnage and number plate of each vehicle), year of use (do not write the par value).Ticket size with a total length multiplied by (x) the width is 12 x 8 cm with the colors: red background, white letters and numbers.Tickets of "National road charges" applies to the vehicles of the Ministry of Defense with red number plate, do not apply to vehicles with other number plates (including the vehicles of the Ministry of Defense without red number plate).

The ticket content of "National road charges" applies to vehicles of the Ministry of Public Security including: The issuance agency (central road maintenance Fund), type of vehicle including four types (according to theTable of charge rateattached to this Circular). The ticket size with the length multiplied by (x) the width is 12 x 8 cm with the ticket color: yellow box background with red mark along the ticket side at position 1/3 of ticket from left to right with black letters and numbers.

c)The printing, issuance, management and use of Receipt of charge collection shall comply with the provisions of Circular No. 153/2012/TT-BTC dated September 17, 2012 of the Ministry of Finance guiding the printing, distribution and management and use of receipts and charges and fees collection of the state budget.

2. For moto-bikes

a) The People s Committees of communes, wards and towns (hereinafter referred to as the communal-level People s Committee) is the charge collection authority for moto-bikes of organizations, households and individuals (vehicle owner) in the area.

b) The communal-level People s Committees shall direct the residential unit (or hamlet) to guide declaration of road use charges for motor-bikes of vehicle owners in the area under the Form No. 02/TKNP in Appendix No. 04 issued together with this Circular and organize the charge collection.

c) The vehicle owner shall make declaration and payment of charges as follows:

c.1) For motorcycles arising before January 01, 2013, then in January 2013 make declaration and payment of charges of the entire 2013 with the charge rate of 12 months.

c.2) For motor-bikes arising from January 01, 2013 onwards, the declaration and payment of charges shall be carried out as follows:

The time arising from January 01 to June 30 annually, the vehicle owners must register and pay charges for motorcycles, the charge rate is equal to 1/2 of that of annual charge rate. The time of payment is July 31 at the latest.

The time arising from July 01 to December 31 annually, the vehicle owner shall make declaration and payment of charges in January of the following year (in January 31 at the latest) and shall not make charge payment for the remaining time of the arising year.

d) When collecting road use charges for motor-bikes, the charge collecting authority shall make and issue receipt to the charge payers as prescribed.

e) The printing, issuance, management and use of the road use charge receipts shall comply with the provisions of Circular No. 153/2012/TT-BTC dated 17/9/2012 of the Ministry of Finance guiding theprinting, distribution, use and management of receipts and charges, fees of the state budget.

Article 8. Management and use of charges

1. For charges collected from cars.

a)Unit organizing collection of road use charges shall be allow to retain one percent (1%) of the amount of road user charges actually collected to pay for the following contents:

a.1) Covering the costs of organization of collection as prescribed. The road use charge retained shall be added up to the unit s funds to cover the costs of organization of collection of charges.

a.2)The inspection unit (charge collecting unit) shall deduct and transfer 3% of the amount of charges retained to serve the management of collection and remittance of road use charges (including: costs of software development, database building, separate internet connection subscribing, professional training, inspection, inspection of other related costs) of the registry system nation-wide

b) Repayment of charges in cases of not subject to charges specified in Clause 2, Article 2 of this Circular.

c) The remaining amount (after deducting the amount specified at points a and b of this clause), the charge collecting unit shall make payment to the account of the central road maintenance Fund opened at the State Treasury for a period of not more than 3 working days from the date of charge.

2. For charges collected from moto-bikes

a) For wards amd towns allowed to retain a maximum of 10% of road use charges collected, for the communes to a maximum of 20% of the charges collected to cover the cost of organization of collection as prescribed.

The People’s Councils of centrally-run provinces and cities (hereinafter referred to as provincial level) specifies the retaining rate for the local areas in accordance with reality.

b) For the remaining amount, the charge collecting authority has to make payment (weekly) into the account of the local maintenance fund opened at the State Treasury ( in case the locality has not set up the local maintenance fund, the remaining amount shall be paid to the local budget) and use in accordance with the Joint Circular of the Ministry of Finance and Ministry of Transport guiding the management, payment and settlement of the road maintenance Fund.

Article 9. Returning the charges paid

For vehicles specified in Clause 2, Article 2 of this Circular have paid charges, the vehicle owners shall be returned the charges paid or deducted from the charges payable in the subsequent period.

1. For cars specified at Point c, Clause 2, Article 2, before carrying vehicles for repair, the vehicle owner must present the record of accident scene with the police certification and return the inspection stamp and inspection certificate (valid) to the nearest registry as a basis for charge returning after the vehicle completes the repair and re-inspection for further circulation.

2. Record to return charges or deduct from the road use charges of the following period (hereinafter referred to as charge return) including:

a) Written request for charge return under Form No. 01/DNTP in Appendix 05 issued together with this Circular.

b) Photocopies of papers evidencing time not permitted to use vehicles specified at Points a and b, Clause 2, Article 2 (eg: Decision on vehicle confiscation or temporary seizure of the competent authority, written revocation of registration certificate and number plate);

c) Photocopy of charge collection receipt;

d) Particularly for cars specified at Point c, Clause 2, Article 2, in addition to the above documents, the vehicle owners also have to provide records of collection of inspection stamp and certificate of inspection (Record Form in Appendix 06 issued together with this Circular). The time for returning or offsetting charges is from the point of time of revocation of stamp and certificate of inspection

3. Record for charge returning shall be submitted at the Registry. When submitting record, for photocopies of documents, the charge return requester must bring the original for comparison. Upon receipt of record, the Registry shall seal for record receiving certification, specify the time of receipt and documents in the record.

Where the record for charge returning is incomplete, within 03 working days from the date of receipt, the Registry must notify the payer for record completion.

4. Within five working days from the date of receipt of a complete record for charge return, based on the record for charge return request of the vehicle owner, the heads of Registry shall make decision on charge return under Form No. 01/QDTP in Appendix 07 or Notification of failure of charge return under Form 01/TP-TB in Appendix 08 issued together with this Circular sent to charge return requester.

5. The charges returned or offset to the vehicle owners corresponding to the amount of charges paid for the time the vehicles are not used.

6. Decision on charge return is the ground for the Registry to make declaration and settlement of the charges returned or offset from the amount of charges to be paid for the subsequent period.

Chapter III

IMPLEMENTATION ORGANIZATION

Article 10. Implementation organization

1. The charge collecting authority shall make collection, remittance, declaration and settlement of charges under provisions in this Circular and of the law concerning management of tax, charges and fees.

2. Provincial-level People’s Committee shall:

a) Developing plan and organizing the collection, management and use of road use charges for motor-bikes for application in the area; specifically guiding on charge rate, charge collection method, the retaining percentage for charge collecting unit, management and use of charges collected for submission to the provincial People s Council for consideration and decision. The building and regulation of charges must be based on the policies of the State, the socio-economic situation and the characteristics of the local areas from time to time, consistent with the contribution ability of the charge payers.

b) Directing lower-level People s Committee in collaboration with the police, transportation agencies, tax authorities, financial agencies to disseminate and propagate to the grassroots level the contents related to road use charges; effectively implementing the collection of road use charges for motor-bikes.

c) Directing and guiding the inspection of the implementation of road use charge collection for motorcycles in the area.

3. Vietnam Register is the agency responsible for printing, distribution and management of stamps for road use charge payment for cars under form approved by the Ministry of Transport.

Article 11. Effect

1. This Circular takes effect from January 01, 2013. This Circular shall annul the contents regulating the road use charges for roads invested by the state budget in Circular No. 90/2004/TT-BTC dated September 07, 2004 of Ministry of Finance guiding the regulation on collection, remittance, management and use of road use charges.

2. For the number of tickets "National road charges", the General Department of Taxation has ordered the printing at the request of the Ministry of Public Security and the Ministry of Defense for use in 2013, these tickets may be allowed for use by the end of 2013.

3. The other content related to of the collection, remittance, management, use, receipts from collection and publicization of the regulation on collection of road use charges not specified in this Circular shall be implemented under Circular No. 63/2002/ TT-BTC dated July 24, 2002 of the Ministry of of Finance guiding the implementation of the provisions of law on charges and fees, the Circular No. 45/2006/TT-BTC dated May 25, 2006, amending and supplementing Circular No. 63/2002/TT-BTC dated July 24, 2002, the Circular No. 28/2011/TT-BTC dated February 28, 2011 of the Ministry of Finance guiding the implementation of a number of articles of the of Law on tax Administration, guiding the implementation of Decree No.85/2007/ND-CP dated May 25, 2007 and Decree No. 106/2010/ND-CP dated October 28, 2010 of the Government, Circular No.153/2012/TT-BTC dated September 17, 2012 of the Ministry of Finance guiding the printing, issuance, management and use of various documents of collection of fees and charges belonging to the state budget and the amending and supplementing documents (if any).

4. Any problem arising during the process of implementation shall be promptly reported to the Ministry of Finance for consideration and settlement.

APPENDIX 01

TABLE OF ROAD USE CHARGE RATE
(Issued together with Circular No. 197/2012/TT-BTC dated November 15, 2012 of the Ministry of Finance)

1. Charge rate for cars

Note:

- The charge rate of one month in year 2 (from the 13th month to the 24th month from the time of registration and payment of charges) is equal to 92% of the charge rate of one month of the first year.

- The charge rate of 1 month in year 3 (from 25th month to the 30th month from the time of registration and payment of charges) is equal to 85% of the charge rate of one month of the first year.

2. Charge rate for vehicles of national defence forces

3.Charge rate for vehicles of police forces

4. Charge rate for moto-bike(excluding electric moto-bikes)

Based on the charge rate for motor-bikes above mentioned, the provincial-level People s Councils shall determine the specific charge rate appropriate to the local situation. As for4-wheel truck with a cylinder motorshall apply the charge rate as specified above. /.