Decree No. 20/2019/ND-CP amending the Decree No. 140/2016/ND-CP

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

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

Pursuant to the November 29, 2006 Law on Tax Administration and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee.

Article 1.To amend and supplement a number of articles of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee

1. To amend and supplement Article 6 as follows:

“1. Registration fee calculation prices for houses and land:

a/ Registration fee calculation prices for land are land prices prescribed in the land price tables promulgated by provincial-level People’s Committees in accordance with the land law at the time of declaration for registration fee payment.

In case of land leased by the State in the form of one-off rental payment for the entire lease term, if this land lease term is shorter than the lease term applicable to the similar land type prescribed in land price tables promulgated by provincial-level People’s Committees, the land price for registration fee calculation in such land lease term shall be determined as follows:

b/ Registration fee calculation prices for houses are prices promulgated by provincial-level People’s Committees in accordance with the construction law at the time of declaration for registration fee payment.

Particularly:

- The registration fee calculation price for state-owned houses sold to current tenants under the regulations on the sale of state-owned houses is the actual selling price stated in the house sale invoice under the decision of the provincial-level People’s Committee.

- The registration fee calculation price for houses purchased through auction under the law on bidding or auction is the actual auction-winning price stated in the sale invoice.

c/ In case the house or land price stated in a land use rights transfer contract or house purchase and sale contract is higher than the price set by the provincial-level People’s Committee, the registration fee calculation price for such house or land is the price stated in the contract.

2. The registration fee calculation price for property being hunting rifles, guns used to exercise and play sports, and ships, including barges, motor boats, tug ships and push ships, and boats, including yachts and aircraft specified in Clauses 2, 3, 4 and 5, Article 2 of this Decree; hulls, complete frames and engines of property specified in Clauses 3, 4, 5, 6 and 7, Article 2 of this Article; and trailers or semi-trailers pulled by automobiles is the property transfer price in the market for each type of property.

The property transfer price in the market for each type of property shall be determined based on the following data:

- For a property item purchased and sold in the domestic market, the property transfer price is the price stated in the lawful sale invoice, inclusive of value-added tax (if any);

- For a domestically produced property item, the property transfer price is the price stated in the notice of the genuine manufacturer.

- For a property item produced or manufactured for consumption, the property transfer price is the selling price of the property of the same type or equivalent, inclusive of excise tax and value-added tax (if any).

- For imported property (including used property), the property transfer price is the import duty calculation value under the customs law, plus (+) import duty (if any), plus (+) excise tax (if any), plus (+) value-added tax (if any); or the price stated in the notice of the authorized importer on behalf of the foreign automobile manufacturing and assembling enterprise. In case of import duty exemption under regulations, the registration fee calculation price is inclusive of exempt import duty.

- Prices on the registration fee management application of tax agencies; the selling price of the property of the same type or equivalent, inclusive of excise tax and value-added tax (if any).

3. The registration fee calculation price for property being automobiles and the like (below collectively referred to as automobiles) and motorcycles specified in Clauses 6 and 7, Article 2 of this Decree (except trailers or semi-trailers pulled by automobiles) is the price stated in the decision on the table of registration fee calculation prices promulgated by the Ministry of Finance.

a/ The registration fee calculation prices in the table of registration fee calculation prices shall be determined on the principle of the compatibility with the property transfer price in the market at the time of formulation of the table of registration fee calculation prices.

The property transfer price in the market for each type of automobile or motorcycle (automobile type, for automobiles) shall be determined based on the data prescribed in Clause 2 of this Article.

b/ For a new type of automobile or motorcycle which has not yet been included in the table of registration fee calculation prices at the time of submitting the declaration for registration fee payment, a tax agency shall decide on the registration fee calculation price for each new type of automobile or motorcycle (automobile type, for automobiles) based on the data prescribed in Clause 2 of this Article.

c/ For a new type of automobile or motorcycle which has not yet been included in the table of registration fee calculation prices, or for an automobile or a motorcycle which has been included in the table of registration fee calculation prices, whose transfer price in the market goes up or down 5% or more against the registration fee calculation price in the table of registration fee calculation prices, a provincial-level Tax Department shall summarize and report such to the Ministry of Finance before the 5^thof the last month of a quarter.

The Ministry of Finance shall promulgate a decision on the revised table of registration fee calculation prices before the 25^thof the last month of a quarter in order to apply it on the first day of the subsequent quarter. A revised table of registration fee calculation prices shall be promulgated under the regulations on promulgation of tables of registration fee calculation prices prescribed at Point a of this Clause or based on the arithmetic mean of the registration fee calculation prices set by local tax agencies.

4. The registration fee calculation price for used property subject to registration fee (except houses, land and imported property) is the residual value of the property in the duration for which the property has been used.

For a used automobile or motorcycle which has not yet been included in the table of registration fee calculation prices, the registration fee calculation price is the residual use value of the equivalent automobile type of which the registration fee calculation price is included in the table of registration fee calculation prices.

5. Registration fee calculation prices in some cases:

a/ For property purchased on installment payment, the registration fee calculation price is the price of property paid at one time (without installment interest) which is determined under Clause 1, 2, 3 or 4 of this Article, inclusive of import duty (if any), excise tax (if any) and value-added tax (if any).

b/ For property purchased in the form of handling property over which all-people ownership is established (confiscated property), the registration fee calculation price is the auction winning price, for property purchased through auction, or the price decided by a competent agency, for property purchased in the form of designation or price listing, inclusive of import duty (if any), excise tax (if any) and value-added tax (if any).

The Ministry of Finance shall guide the implementation of this Article.”

2. To amend and supplement Clause 5 of, and add Clauses 7 and 8 to, Article 7 as follows:

a/ To amend and supplement Clause 5 as follows:

“5. Automobiles, trailers or semi-trailers pulled by automobiles and the like: 2%.

Particularly:

a/ The first-time registration fee rate for passenger cars with 9 or fewer seats is 10%. When necessary to apply a higher fee rate to suit local practical conditions, provincial-level People’s Councils may decide to increase the registration fee rate by no more than 50% the common rate prescribed at this Point.

For pick-up cars with authorized total load of less than 1,500 kg and with 5 or fewer seats, and vans with authorized total load of under 1,500 kg, the first-time registration fee rate is 60% of the first-time registration fee rate for passenger cars with 9 or fewer seats.

b/ From the second time on, the registration fee rate of 2% shall be applied uniformly nationwide for passenger cars with 9 or fewer seats, pick-up cars with authorized total load of under 1,500 kg and with 5 or fewer seats, and vans with authorized total load of under 1,500 kg.

Based on the vehicle type stated in the technical quality and safety and environmental protection certificate granted by the Vietnam Register, tax agencies shall determine the registration fee rate for automobiles, trailers or semi-trailers pulled by automobiles and the like as prescribed in this Clause.”

b/ To add the following Clause 7:

“7. For organizations or individuals that are exempt from or not liable to registration fee when registering ownership of automobiles and motorcycles for the first time, if they transfer them to other organizations or individuals or change the use purpose to another purpose not exempt from registration fee under regulations, they shall pay registration fee at the first-time registration fee rate for the residual use value of the property when registering ownership of automobiles and motorbikes.”

c/ To add the following Clause 8:

“8. Organizations or individuals that are transferred automobiles or motorcycles over which all-people ownership is established (confiscated property) in accordance with law and of which the ownership has been registered shall pay registration fee at the rate applied from the second time on when registering the ownership of such automobiles of motorcycles.

Organizations or individuals that are transferred automobiles or motorcycles over which all-people ownership is established (confiscated property) in accordance with law and no previous registration of ownership is made or for which there is no ground to determine the previous registration of ownershipshall pay registration fee at the first-time registration fee rate when registering the ownership of such automobiles of motorcycles.”

3. To amend and supplement Clauses 3 and 15; Points b, c and d, Clause 16; and Clauses 21, 23 and 25 of, and add Point f to Clause 16 of, Article 9 as follows:

a/ To amend and supplement Clause 3 as follows:

“3. Land allocated or leased by the State in the form of one-off rental payment for the entire lease term for use for the following purposes:

a/ Public purposes as defined by the land law.

b/ Mineral exploration and exploitation; scientific research under licenses or certificates granted by competent state agencies.

c/ Construction of infrastructure facilities (on land within or outside industrial parks or export processing zones), or construction of houses for transfer, including cases in which organizations or individuals that are transferred infrastructure facilities for further construction or for construction of houses for transfer. For these cases, when registering the ownership or use rights for lease or use by themselves, registration fee shall be paid.”

b/ To amend Clause 15 as follows:

15. Houses and land being compensations or resettlement land (including houses and land purchased with compensation money) in case the State recovers houses and land in accordance with law.

The registration fee exemption specified in this Clause shall apply to subjects whose houses and land are recovered.”

c/ To amend and supplement Points b, c and d of, and add Point f to, Clause 16 as follows:

“b/ Property of state enterprises or public non-business units equitized into joint-stock companies or otherwise reorganized in accordance with law.

c/ Property with ownership or use rights certificates granted to households which is now divided among household members in accordance with law and are re-registered in accordance with law.

d/ Property of organizations or individuals for which ownership and use rights certificates have been granted and which is now re-registered because such certificates are lost, torn out, smeared, blurred or damaged. Competent agencies shall re-grant ownership or use rights certificates to organizations and individuals upon request.”

“f/ Land use rights re-reigistered upon change of the land use purpose under the State’s permission without changing the person having the land use rights and not being liable to land use levy in accordance with the law on the collection of land use levy.”

d/ To amend and supplement Clause 21 as follows:

“21. Fire-engines, ambulances, X-ray automobiles, salvage cars (including lorries and trucks vehicles), garbage trucks, water trucks, street-cleaning vehicles, road sweepers, dumpers and dust cleaners, septic trucks, and automobiles used exclusively for invalids, diseased soldiers or people with disabilities registered for ownership under the names of such invalids, diseased soldiers or people with disabilities.”

dd/ To amend and supplement Clause 23 as follows:

“23. Fishing ships and boats, offshore ships, hulls, complete frames and engines of fishing ships and boats, and offshore supporting capture ships that are replaced and required to be re-registered with a competent state agency.”

e/ To amend and supplement Clause 25 as follows:

“25. Workshops of production establishments; warehouses, refectories and parking lots of production and business establishments. Workshops specified in this Clause shall be determined under the law on classification of construction works.”

4. To amend and supplement Clause 2; Points  a and d, Clause 3; Point b, Clause 4; and Claus 5 of, and add Clause 7 to, Article 10 as follows:

a/ To amend and supplement Clause 2 as follows:

“2. Place of registration fee registration dossier filing

a/ For houses and land, registration fee declaration dossiers shall be submitted to agencies in charge of receiving dossiers for registration and grant of land use rights and house and land-attached asset ownership certificates in accordance with the land law.

b/ For property subject to registration fee (except houses and land), registration fee declaration dossiers shall be submitted to tax branches in localities where registration of ownership or use rights is carried out, or a location decided by the provincial-level People’s Committee at the proposal of the director of provincial-level Tax Department, or via the portal of the General Department of Taxation, for e-registration fee declaration dossiers.”

b/ To amend and supplement Clause 3 as follows:

“a/ For houses and land:

- The original registration fee declaration, made according to Form No.1 provided in the Appendix to this Decree.

- Valid copies of documents proving that the property (or property owner) is eligible for registration fee exemption (if any), except cases of submitting the originals specified in Clause 7 of this Article.

- Valid copies of documents proving the lawful origin of the houses and land in accordance with law.

- Valid copies of lawful documents in accordance with law on the transfer of assets signed between the transferor and the transferee.

b/ For other property (except fishing vessels, inland waterway craft and seagoing vessels that lack original documents or are newly built in Vietnam):

- The original registration fee declaration, made according to Form No. 2 provided in the Appendix to this Decree.

- Valid copies of papers on lawful property purchase and sale or transfer.

- A valid copy of the ownership or use rights certificate of the previous owner (for property subject to ownership or use rights registration in Vietnam from the second time on).

- A valid copy of the certificate of technical quality and safety and environmental protection granted by the Vietnam Register (for automobiles, trailers or semi-trailers pulled by automobiles or the like).

- Valid copies of papers proving that the property or property owner is eligible for registration fee exemption (if any), except cases of submitting the originals specified in Clause 7 of this Article.

c/ For fishing vessels, inland waterway craft and seagoing vessels that lack original documents or are newly built in Vietnam:

- The original registration fee declaration, made according to Form No. 2 provided in the Appendix to this Decree.

- A valid copy of the notice or confirmation issued by a competent agency that the vessel or craft is eligible for ownership registration.

Valid copies of documents in a registration fee declaration dossier specified at Points a, b and c of this Clause must be duplicates or copies certified by competent agencies or organizations or copies compared with the originals. In case organizations and individuals submit copies directly, they shall produce the originals for comparison.

d/ For e-registration fee declaration dossiers

Registration fee declaration, made according to Form No. 1, for houses and land, or Form No. 2, for other property, provided in the Appendix to this Decree, and lawful documents enclosed with the registration fee declaration as required by the registration agency when carrying out the procedures for grant of property ownership or use rights certificates to be sent to the tax agency must satisfy requirements of e-transactions.

For cases of failing to pay registration fee within the prescribed time limit, the validity duration of a registration fee declaration (Form No. 02) is 30 days after it is submitted. Past this time limit, the registration fee declaration is no longer valid and  shall be canceled.”

c/ To amend and supplement Point b, Clause 4  as follows:

“b/ Within 30 working days after the tax agency signs the notice of registration fee payment, the registration fee payer shall pay registration fee into the state budget at a registration fee-collecting agency or organization as prescribed by the law on tax administration.”

d/ To amend and supplement Clause 5 as follows:

“5. Registration fee receipts shall be issued under regulations.

The General Department of Taxation shall digitally sign and transmit electronic data on registration fee payment via banks, the State Treasury or intermediary payment service-providing organizations to the competent agencies connected with tax agencies. Registration fee e-data bearing digital signatures may be used instead of paper documents for carrying out property registration-related administrative procedures.”

dd/ To add the following Clause 7:

“7. Papers proving that the property (or property owner) is eligible for registration fee exemption in the following cases:

a/ For land allocated, leased or recognized by the State for agricultural and forestry production, aquaculture or salt making, a “sheet on cadastral information for performance of financial obligations” in which a land use rights registration office certifies eligibility for grant of a certificate of land use rights in the form of land allocation or lease or land use rights recognition by the State.

b/ For land used for community purposes by religious organizations or belief institutions recognized or licensed by the State for operation, papers proving that the State permits such organizations or institutions to operate.

c/ For houses, land, special property, special-use property and property used for national defense and security purposes, a competent authority’s approval decision on property allocation or procurement of special property, special-use property and property used for national defense and security purposes; or confirmation issued by a competent authority of public security and national defense agencies that such houses, land and property are special-use ones used for national defense and security purposes.

d/ For houses and land being compensations or resettlement support:

- Competent state agencies’ decisions on recovery of old houses and land and decisions on allocation of new houses and land.

- Land use rights and house and land-attached asset ownership certificate granted by a competent agency to the person having rights to use the land recovered by the State in which no financial obligations are stated.

In case the person having land use rights has fulfilled his/her registration fee obligations but has not yet been granted or has lost the certificate: the receipts of registration fee payment of the owner with house and land recovered by the State; or a confirmation issued by a house and land record management agency (original); or a competent state agency’s decision on registration fee exemption.

- Invoices or land use rights transfer contracts or house purchase and sale contracts in accordance with law, together with the original receipts of compensation or support money paid by agencies recovering houses and land (in case of monetary compensation and support).

dd/ For renewal of property ownership and use right certificates: granted documents proving the property ownership or use rights.

e/ For property of enterprises equitized into joint-stock companies:

- A competent agency’s decision on the transformation of the enterprise into a joint-stock company or reorganization of the enterprise.

- List of property transferred from the enterprise to the joint-stock company (for an enterprise partially equitized, a decision on transfer of its property) or to the new enterprise under the competent agency’s decision on enterprise reorganization; or table of results of inventory and revaluation of enterprise’s property  under regulations, stating names of property subject to registration fee declaration.

g/ Property of organizations or individuals for which registration fee has been paid and which have been divided or contributed due to the division, separation, consolidation, merger:

- Papers proving that the person having the registered property is a member of such organization (decision on establishment of the organization or the operation charter of the organization bearing names of members having made capital contributions with property, or papers proving capital contributions with property; or names stated in the business registration, together papers proving capital contributions with property).

- Decision on dissolution, division, separation, consolidation, or merger of organization and division of property for capital-contributing members.

- Registration fee receipts (for cases subject to registration fee); or registration fee declaration handed over by the property transferor to the property recipient in which the registration fee exemption (for cases exempted from registration fee under regulations) is defined by a tax agency; or certificate of property ownership and use rights under the name of the person making the capital contribution with property (for organizations receiving capital contribution that makes registration fee declaration; or certificate of property ownership and use rights under the name of the dissolved organization (for members to whom property is divided and who make registration fee declaration).

- Business cooperation contract (in case of capital contribution), or decision on division and transfer of property in the form of recording capital increase or decrease by the competent authority (for cases of transfer of property between member units or within an estimation unit).

h/ For houses of gratitude, houses of great unity, and houses received as humanitarian aid: papers on transfer of land use rights and house ownership between the donor and the recipient.

i/ For property for financial lease:

- A financial lease contract signed between the lessor and the lessee in accordance with the law on financial lease.

- A written record of liquidation of the financial lease contract between the lessor and the lessee.

- Certificate of property use rights and ownership of the finance leasing company.

k/ Hulls, complete frames and engines used as replacements to be re-registered during the warranty period:

- Property warranty certificate.

- Delivery notes of replacement property, enclosed with the old property recovery paper issued by the seller to the purchaser.

l/ In case of proving a family relationship, one of the following documents may be used, depending on the relationship: household registration book, marriage certificate, birth certificate, decision on adoption recognition issued by the competent state agency in accordance with law or a confirmation on the relationship issued by the People’s Committee of the commune, ward or township where the property-giving or -receiving person resides permanently.

m/ For cars registered and granted military registration number plates, and now used for economic purposes under the Ministry of National Defense’s permission when state enterprises are equitized into joint-stock companies or otherwise reorganized in accordance with law:

- The Chief of General Staff’s decision to use cars as military equipment (for identifying the property registered and granted by the Ministry of National Defense military number plates in cases not liable to pay or exempt from registration fee under regulations).

- The decision of a competent agency on transformation of an enterprise into a joint-stock company or reorganization of a state enterprise.

- List of transferred property being the enterprise’s military vehicles for national defense purposes to a joint-stock company or new enterprise under the competent agency’s decision on reorganization of enterprise; or a table of results of inventory and revaluation of property of the enterprise under regulations.

n/ High-speed ships and boats used for passenger transportation and ships and boats used for container transportation operating in inland waterways:

A technical safety and environmental protection certificate granted by a Vietnamese register agency must be written as follows:

- For “high-speed passenger ships”

+ The phrase “passenger ship” shall be written in the section “utility”;

+ The vessel sign VRH HSC or VRM HSC shall be written in the section “certification that the vehicle with technical specifications and environmental pollution prevention characteristics as stated in this certificate has a technical status satisfying the requirements of current norms and regulations and was granted a certificate”; or the ship speed of at least 30 km/hour shall be written in the section “operation capacity”.

- For “container ships”, the phrase “to carry containers” shall be written in the section “utility”.”

5. To amend and supplement Article 13 as follows:

“Article 13.Implementation responsibility

1. The Ministry of Finance shall:

a/ Coordinate with related ministries and sectors in developing a coordination process to connect e-procedures for grant of certificates of ownership or use rights of property subject to registration fee under  Article 2 of this Decree;

b/ Draft and promulgate a decision on table of registration fee calculation prices and revised table of registration fee calculation prices in accordance with this Decree.

2. The Ministry of Transport, Ministry of Natural Resources and Environment, Ministry of Construction, and Ministry of Public Security shall:

a/ Build a system of data connection and sharing to carry out property registration-related administrative procedures;

b/ Connect and share data on property subject to registration fee according to criteria in the form of registration fee declaration promulgated together with this Decree and regulations on electronic connection;

c/ Unify the data connection standards and organize the pilot electronic declaration for registration fee payment and exchange of data on registration fee in 2020, and then implement it nationwide based on the pilot implementation results. The data exchange must be digitally signed in accordance with the Law on E-Transactions.

3. The Ministry of Transport (the Vietnam Register) shall classify means of transport as a basis for the collection of registration fee under regulations.”

Article 2.Effect

1. This Decree takes effect on April 10, 2019.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.