Circular 74/2020/TT-BTC road user charge rate and the remittance thereof

CIRCULAR

On prescribing the road user charge rate and the remittance thereof

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Pursuant to the Law on Charges and Fees dated November 25, 2015;

Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017, on defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Prime Minister’s Directive No. 11/CT-TTg dated March 04, 2020 on urgent tasks and solutions to remove difficulties for production and business, ensure social security in response to the COVID-19 epidemic;

At the proposal of the Director of the Tax Policy Department,

The Minister of Finance hereby promulgates the Circular on prescribing the road user charge rate and the remittance thereof.

Article 1. The rate and remittance of road user charges

Owners of cars used in transport business of transport business enterprises, cooperatives and households subject to road user charges as prescribed in Article 2 of the Circular No. 293/2016/TT-BTC dated November 15, 2016 of the Minister of Finance on prescribing the rate, collection, remittance, exemption, management and use of road user charges (hereinafter referred to as the Circular No. 293/2016/TT-BTC) shall pay charges as follows:

1. From the effective date of this Circular until the end of December 31, 2020:

a) Passenger transport cars (cars for carrying people, buses for mass transit of all kinds): The charge rate to be remitted shall be equal to 70% of the charge rate specified at Points 1, 2, 3, 4 and 5, Section 1 of the Road User Charge Tariff attached to the Circular No. 293/2016/TT-BTC.

b) For trucks, special-use vehicles and tractors: The charge rate to be remitted shall be equal to 90% of the charge rate specified at Points 2, 3, 4, 5, 6, 7 and 8, Section 1 of the Road User Charge Tariff attached to the Circular No. 293/2016/TT-BTC.

c) During the effective period of this Circular, the charge rate specified at Points 1, 2, 3, 4, 5, 6, 7 and 8, Section 1 of the Road User Charge Tariff attached to the Circular No. 293/2016/TT-BTC shall not be applied.

d) In case the a non-transport car is changed to transport car during the effective period of this Circular, the time of applying the charge rate specified in this Circular shall be the time such car is recorded as a transport car in the Inspection Management Program of the Vietnam Register.

dd) If a car is paid charges according to the charge rate specified in the Circular no. 293/2016/TT-BTC for the effective duration of this Circular, the car owner shall be deducted the difference between the charge rate specified in the Charge No. 293/2016/TT-BTC and the charge rate prescribed in this Circular and the charge rate to be remitted of the next cycle. The register office shall be responsible for the charge clearing for the car owner in the next cycle.

Example 1: Enterprise A has a paid 12-month register cycle charges (from April 01, 2020 to March 31, 2021) for its 24-car, the charge rate to be paid is VND 270,000/month as prescribed in the Circular No. 293/2016/TT-BTC.

On April 01, 2021, enterprise A takes its car to the register office and pays a road user charge for the next register cycle (12 months: from April 01, 2021 to March 31, 2022). The register office shall calculate and collect the road user charge as follows:

- The charge to be paid of the next cycle = VND 270,000/month x 12 months = VND 3,420,000.

- The charge to be deducted (for the period from August 10, 2020 to December 31, 2020) = VND 270,000/month x 30% x (4 + 2/3) months = VND 378,000.

- The amount to be paid by the enterprise = VND 3,420,000 - VND 378,000 = VND 3,042,000.

Example 2: Cooperative B has a paid 6-month register cycle charges (from April 01, 2020 to September 30, 2020) for its 24-car.

On October 01, 2020, cooperative A takes its car to the register office and pays a road user charge for the next register cycle (06 months: from October 01, 2020 to March 31, 2021). The register office shall calculate and collect the road user charge as follows:

- The charge to be paid of the next cycle = (VND 270,000/month x 70% x 3 months) + (VND 270,000/month x 3 months) = VND 1,377,000.

- The charge to be deducted (for the period from August 10, 2020 to September 30, 2020) = VND 270,000/month x 30% x (1 + 2/3) months = VND 135,000.

- The amount to be paid by cooperative B = VND 1,377,000 - VND 135,000 = VND 1,242,000.

2. From January 01, 2021, the road user charge rate specified in Section 1 of the Road User Charge Tariff attached to the Circular No. 293/2016/TT-BTC shall be applied.

Article 2. Effect

1. This Circular takes effect from August 10, 2020, until the end of December 31, 2020.

2. Provisions on scope of regulation, charge-liable objects, cases of exemption from charges, cases free from charges; charge payers and collecting agency; charge rates; calculation and payment; documents on the charge collection; charge management and use; refund or clearing of paid charges and other relevant regulations that are not prescribed in this Circular shall comply with the Circular No. 293/2016/TT-BTC.

3. The Vietnam Register shall provide guidance on calculation, clearing and collection of road user charges for vehicles to register offices in accordance with this Circular.

4. Any problem arising in the course of implementation should be promptly reported to the Ministry of Finance for review and additional guidance.