New proposal regarding registration fees.

Decree No. 140/2016/ND-CP stipulates that if the actual market transfer price of cars and motorcycles increases or decreases by 20% or more compared to the taxable price for vehicle registration tax as stated in the price list issued by the Ministry of Finance, the Ministry of Finance shall adjust the taxable price for vehicle registration tax for that asset. In recent times, due to international commitments on import tax reductions, the market transfer prices of many vehicle models have tended to decrease, but the decrease has not yet reached 20%, thus not meeting the conditions for adjusting the taxable price for vehicle registration tax for these models.

The Vietnam Automobile Manufacturers Association (VAMA) has proposed studying adjustments to the fluctuation limits to ensure consumer rights. Additionally, it is necessary to regulate the timeframe for the Ministry of Finance to issue supplementary and adjusted vehicle registration tax price lists to ensure stability.

Decree No. 140/2016/ND-CP, which regulates the tax base for vehicle registration tax on cars and motorcycles, has led to different interpretations in its implementation.

Regarding the exemption from land use tax, practical implementation shows that some cases (such as assets re-registered during the equitization process from public service units to joint-stock companies; assets re-registered due to changes in land use purposes but without changing the land user and not subject to land use tax; hulls, frame assemblies, and engine assemblies of fishing vessels that are replaced and require registration; sewage suction vehicles, rescue vehicles; resettlement houses and land, etc.) need to be included in the exemption categories or require clearer regulations to ensure feasibility and consistency in the State's preferential policies.

Therefore, in order to address the shortcomings and deficiencies in the current land use fee collection policy; to ensure consistency and uniformity in the land use fee collection policy and between the land use fee collection policy and related legal documents; and to ensure transparency and facilitate the policy for citizens and businesses, it is necessary to study and amend Decree No. 140/2016/ND-CP.

Amendments

There are differing interpretations regarding the regulations on the tax base for vehicle registration tax (LPTB) on cars and motorcycles. To standardize this understanding, the Ministry of Finance proposes amending Clause 2, Article 6 of Decree No. 140/2016/ND-CP to clarify the following: The tax base for vehicle registration tax on cars and motorcycles is the price in the LPTB price list issued by the Ministry of Finance (even if the LPTB price for cars and motorcycles fluctuates beyond the level requiring adjustment of the LPTB price list, and the Ministry of Finance has not yet adjusted the price list, the price list will still be applied to calculate the LPTB). Specifically as follows:

“b) The taxable value for registration fees of automobiles and motorcycles as stipulated in Clauses 6 and 7 of Article 2 of this Decree, and the body, frame assembly, and engine assembly of automobiles and motorcycles as stipulated in Clauses 6 and 7 of Article 2 of this Decree, shall be the price in the Registration Fee Calculation Price List issued by the Ministry of Finance, based on the principle that the taxable value for registration fees is the market transfer price of the asset at the time of compiling the Price List, as determined according to the provisions of point a of this Clause.”

b) Regarding the tax base for assets not yet included in the Tax Base Calculation Price List and the fluctuation in transfer prices of automobiles and motorcycles to adjust the Tax Base Calculation Price List.

b.1) Regarding the tax base for assets not included in the Tax Base Calculation Price List

Point b, Clause 2 of Decree No. 140/2016/ND-CP (inherited in the draft Decree) stipulates: In cases where automobiles and motorcycles are not included in the Price List for calculating vehicle registration tax, the taxable value for vehicle registration tax is the market transfer price of the asset (the price on the legally valid sales invoice for the purchased asset; or the import tax value as prescribed by customs law, plus (+) import tax, plus (+) special consumption tax, plus (+) value-added tax (if any) for imported assets) (as stipulated in point a of this clause).

To ensure greater timeliness in determining the taxable value of vehicle registration fees for automobiles and motorcycles not yet included in the Vehicle Registration Fee Calculation Price List, the Ministry of Finance proposes amending and supplementing the regulations on the taxable value of vehicle registration fees for automobiles and motorcycles not yet included in the Vehicle Registration Fee Calculation Price List in Clause 2, Article 6 of Decree No. 140/2016/ND-CP as follows: “In cases where a type of asset arises that, at the time of submitting the vehicle registration fee declaration, is not yet included in the Vehicle Registration Fee Calculation Price List issued by the Ministry of Finance, the Director of the Tax Department shall decide on the taxable value of the vehicle registration fee according to the principle that the minimum taxable value of the asset is the market transfer price as stipulated in point a of this clause, to serve as the basis for calculating the vehicle registration fee.”