Circular 20/2019/TT-BTC amend Circular 301/2016/TT-BTC guiding registration fee

CIRCULAR

Amending and supplementing a number of articles of Circular No. 301/2016/TT-BTC of November 15, 2016, guiding registration fee^[1]

Pursuant to November 25, 2015 Law No. 97/2015/QH13 on Charges and Fees;

Pursuant to the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee;

Pursuant to the Government’s Decree No. 20/2019/ND-CP of February 21, 2019, amending and supplementing a number of articles of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee;

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

At the proposal of the General Director of Taxation,

The Minister of Finance promulgates the Circular amending and supplementing a number of articles of Circular No. 301/2016/TT-BTC of November 15, 2016, guiding registration fee, as follows:

Article 1.To amend and supplement a number of articles of the Minister of Finance’s Circular No. 301/2016/TT-BTC of November 15, 2016, guiding registration fee

1. To amend and supplement Article 1 as follows:

“This Circular guides registration fee-liable objects, registration fee calculation prices, registration fee rates, and exemption from registration fee.”

2. To amend and supplement Point a, Clause 2, and Points b and d, Clause 3, Article 3 as follows:

“2. Registration fee calculation prices for houses

a/ 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 registration fee declaration.

Pursuant to Point b, Clause 1, Article 6 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee, which was amended and supplemented under Clause 1, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019, and pursuant to Clause 2 of this Article, provincial-level Departments of Finance shall assume the prime responsibility for, and coordinate with provincial-level Departments of Construction and related local agencies in, formulating registration fee calculation prices for houses and propose provincial-level People’s Committees to promulgate tables of registration fee calculation prices for houses for application in their localities.

3. Registration fee calculation prices for other assets

b/ The registration fee calculation prices for automobiles and the like (below collectively referred to as automobiles) and motorcycles specified in Clauses 6 and 7, Article 2 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee (except trailers or semi-trailers pulled by automobiles), are the prices stated in the decision on the table of registration fee calculation prices promulgated by the Ministry of Finance (below referred to as the price table).

The price table shall be used as a basis for determining registration fee calculation prices for brand-new automobiles or motorcycles, which shall be determined based on such criteria as vehicle category, trademark and type (model code or commercial name; commercial name and type code (if any), for automobiles), operating volume or engine capacity or allowable load (load capacity), allowable seating capacity (including the driver), country of manufacture of automobiles or motorcycles stated in the technical safety quality and environmental protection certificate, or notice of exemption from inspection of technical safety quality and environmental protection, or type quality certificate, granted by a Vietnam’s register agency or the ex-factory quality inspection certificate for motor vehicles. For the operating volume of an automobile, its unit of calculation shall be rounded to one decimal place as follows: digits equal to or larger than 5 shall be rounded up, digits smaller than 5 shall be rounded down.

For a new type of automobile or motorcycle which is not yet included in the price table at the time of submission of the registration fee declaration, a tax agency shall decide on the registration fee calculation price for such automobile or motorcycle (vehicle type, for automobiles), based on the data prescribed in Clause 1, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019. A provincial-level Tax Department shall notify Tax Sub-Departments of the registration fee calculation price applicable in the locality within 3 (three) working days after receiving a valid dossier of registration fee declaration.

A type of automobile or motorcycle not yet included in the price table means that satisfying one of the criteria prescribed at this Point, which is not the same as the criterion stated in the price table.

d/ For used assets liable to registration fee (except houses, land and used assets which are imported and registered for ownership for the first time, and for which the registration fee calculation price is determined based on the data for imported assets prescribed in Clause 1, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019), the registration fee calculation price of an asset is the residual value of the asset calculated based on the asset’s use duration.

The residual value of an asset is equal to the value of such asset when new multiplied by (x) percentage of its residual value, in which:

d.1/ The value of an asset when new shall be determined under Clause 2, Article 6 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee, which was amended and supplemented under Clause 1, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019, and Point b of this Clause;

d.2/ Percentage (%) of the residual quality of assets liable to registration fee shall be determined as follows:

- For a new asset: 100%

- For an asset used for up to 1 year: 90%

- For an asset used for between over 1 year and 3 years: 70%

- For an asset used for between over 3 years and 6 years: 50%

- For an asset used for between over 6 years and 10 years: 30%

- For an asset used for over 10 years: 20%.

For a used asset, the period during which it has been used shall be counted from the year of manufacture to the year of registration fee declaration.

d.3/ For a used automobile or motorcycle which is not yet included in the price table, the registration fee calculation price is the residual use value of the vehicle of equivalent type of which the registration fee calculation price is included in the price table.

A vehicle of equivalent type is defined as an automobile or a motorcycle having the same origin, trademark, operating volume or engine capacity, and allowable seating capacity (including the driver), and having its type containing characters equivalent to those of the type of the automobile or motorcycle included in the price table.

In case vehicles of different equivalent types are included in the price table, a tax agency shall determine their registration fee calculation prices on the principle of applying the highest registration fee calculation price rate.

For a used automobile or motorcycle which is not yet included in the price table and for which it is impossible to determine an equivalent type, a tax agency shall determine its registration fee calculation price based on the data prescribed in Clause 1, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019.”

3. To amend and supplement Clauses 5 and 6, Article 4 as follows:

“Article 4. Registration fee rates in percentage (%)

5. Registration fee rates for automobiles, trailers or semi-trailers pulled by automobiles and the like, passenger cars with 9 or fewer seats, vans and pickup cars must comply with Clause 2, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019.

Based on vehicle type and allowable load stated in the technical safety quality and environmental protection certificate granted by a Vietnam’s register agency, tax agencies shall determine registration fee rates for automobiles, trailers or semi-trailers pulled by automobiles and the like as prescribed in this Clause.

Tax agencies shall determine registration fee rates for automobiles based on:

- Number of seats in an automobile specified to the manufacturer’s design.

- Allowable load.

- Type of automobile, which shall be specified as follows:

For imported automobiles, their type is that determined by the register agency and stated in the section “Type of vehicle” of the certificate of technical safety quality and environmental protection for imported motor vehicles or the notice of exemption from inspection of technical safety quality and environmental protection for imported motor vehicles, granted by a Vietnam’s register agency.

For locally manufactured and assembled automobiles, their type is that written in the section “Type of vehicle” of the certificate of technical safety quality and environmental protection for manufactured and assembled automobiles, or in the ex-factory quality inspection certificate for motor vehicles.

For vehicles not defined as trucks in the section “Type of vehicle” of the above-mentioned papers, the registration fee rate for passenger cars shall be applied.

If the public security agency granting vehicle number plates detects through inspection of vehicle types that whether the vehicle is a truck or passenger car is not clearly stated in the certificate of technical safety quality and environmental protection or the notice of exemption from inspection of technical safety quality and environmental protection for imported motor vehicles granted by a Vietnamese register agency or the ex-factory quality inspection certificate for motor vehicles, which leads to application of an inappropriate registration fee rate, it shall promptly notify such to the register agency for re-determining the type of the vehicle before granting a number plate. In case the register agency’s re-determination of vehicle types requires re-calculation of registration fee rates, the public security agency shall transfer the vehicle dossier together with verification documents to the tax agency for issuing a notice of registration fee collection according to regulations.

6. For automobiles with diplomatic, foreign or international number plates of foreign organizations and individuals prescribed in Clause 2, Article 9 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, which are transferred to other organizations or individuals in Vietnam (other than those mentioned in Clause 2, Article 9 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016), the transferees shall carry out the procedures for declaration and payment of import duty, excise tax and value-added tax as required and pay registration fee at the rates applied for the first time which are set by provincial-level People’s Councils. In this case, the registration fee calculation price is the residual value of the asset determined at the time of registration fee declaration under the guidance at Point d.3, Clause 3, Article 3 of this Circular.

For automobiles with foreign number plates whose foreign owners (other than those prescribed in Clause 2, Article 9 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016) have declared and paid registration fee at the rates applied for the first time, if these owners transfer their assets to other organizations or individuals in Vietnam, the transferees shall declare and pay registration fee at the rate of 2% upon registration of ownership or use rights for such assets.”

4. To amend and supplement Point c, Clause 3; Clause 15; Point c, Clause 16; and Clause 21, Article 5 as follows:

“Article 5.Exemption from registration fee

Exemption from registration fee must comply with Article 9 of the Government’s Decree No. 140/2016/ND-CP of October 10, 2016, on registration fee, which was amended and supplemented under Clause 3, Article 1 of the Government’s Decree No. 20/2019/ND-CP of February 21, 2019, specifically 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:

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 are transferred infrastructure facilities for further construction of these facilities or for construction of houses for transfer. For these cases, when registering the ownership or use rights of infrastructure facilities or houses for lease or use, the registration fee shall be paid.

15. Houses and land eligible for compensations or resettlement policies (including those purchased with compensation or support money) upon house or land recovery by the State under law for which organizations or individuals with recovered houses or land have paid registration fee (or are not liable to pay or are exempt from registration fee or have the payable registration fee amount deducted when calculating compensation for recovered houses or land under law).

The exemption from registration fee specified in this Clause is applicable to the entities whose houses and land are recovered.

16. Assets for which ownership and use rights certificates have been granted and which are now re-registered may be exempted from registration fee in the following cases:

c/ Assets with ownership or use rights certificates granted to households in the name of one household member (including cases of asset co-ownership) which are now divided among household members in accordance with law and are re-registered;

A household member must be a person with family relations as prescribed in the Law on Marriage and Family and shares the same permanent residence registration book with the person who is named in the ownership or use rights certificate.

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

Article 2.To annul the following provisions of Circular No. 301/2016/TT-BTC of November 15, 2016, guiding registration fee

1. Point c.4, Clause 1, Point c.2, Clause 2, and Point a, Clause 3, Article 3.

2. Points b and d, Clause 16, and Clauses 23 and 25, Article 5; and Article 6.

Article 3.Effect

1. This Circular takes effect on June 1, 2019.

2. Any problems arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for study and guidance.-

For the Minister of Finance
Deputy Minister
TRAN XUAN HA