New proposal on registration fee

Decree No. 140/2016/ND-CP stipulates that in cases where the actual transfer price of automobiles and motorbikes on the market increases or decreases by 20% or more compared to the price calculated for the LPTB in the Price List issued by the Ministry of Finance, the Ministry of Finance shall adjust the LPTB calculation price for that asset. In recent times, implementing international commitments on import tax reduction, the transfer price on the market of many car models has tended to decrease, but the decrease is less than 20%, so it is not enough to adjust the LPTB calculation price for these car models.

The Vietnam Automobile Manufacturers Association (VAMA) has proposed to study and adjust the fluctuation level to ensure consumer rights. In addition, it is necessary to stipulate the time for the Ministry of Finance to issue the supplementary and adjusted LPTB calculation price list to ensure stability.

Decree No. 140/2016/ND-CP regulating the price of calculating LPTB for cars and motorbikes also leads to different interpretations in implementation.

Regarding exemption from land use tax, the actual implementation shows that some cases (such as assets re-registered when equitizing from a public service unit to the ownership of a joint stock company; assets re-registered due to change of land use purpose but without change of land user and not subject to land use fee payment; hull, frame assembly, engine assembly of fishing boats and ships that are replaced but must be registered; waste suction vehicles, rescue vehicles; resettlement houses and land...) need to be included in the list of exempted land use tax or need to be more clearly defined to ensure feasibility in implementation and consistency in the State's preferential policies.

Therefore, to overcome the shortcomings and shortcomings in the current LPTB collection policy; ensure consistency and unity in the LPTB collection policy and between the LPTB collection policy and related legal documents; as well as ensure a public, transparent policy, creating favorable conditions for people and businesses, it is necessary to study and amend and supplement Decree No. 140/2016/ND-CP.

Modified content

There are other ways to understand the implementation of the regulations on the price of calculating the LPTB for cars and motorbikes. To unify the understanding, the Ministry of Finance proposes to amend the price of calculating the LPTB for cars and motorbikes in Clause 2, Article 6 of Decree No. 140/2016/ND-CP to clarify as follows: The price of calculating the LPTB for cars and motorbikes is the price in the LPTB calculation price list issued by the Ministry of Finance (including cases where the price of calculating the LPTB for cars and motorbikes fluctuates beyond the level of fluctuation that requires adjustment of the LPTB calculation price list, but 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 price for calculating registration fee for assets being automobiles and motorbikes specified in Clause 6 and Clause 7, Article 2 of this Decree and the shell, chassis assembly, and engine assembly of automobiles and motorbikes specified in Clause 6 and Clause 7, Article 2 of this Decree is the price in the Price List for calculating registration fee issued by the Ministry of Finance according to the principle that the price for calculating registration fee is the price of transferring assets on the market at the time of constructing the Price List determined according to the provisions in Point a of this Clause”.

b) Regarding the price for calculating LPTB for assets arising not included in the LPTB calculation price list and the fluctuation level of car and motorbike transfer prices to adjust the LPTB calculation price list

b.1) Regarding the price for calculating LPTB for assets not included in the LPTB price list

At Point b, Clause 2 of Decree No. 140/2016/ND-CP (inherited in the draft Decree) stipulates: In case cars and motorbikes are not included in the LPTB calculation price list, the LPTB calculation price is the asset transfer price on the market (price on the legal sales invoice for assets purchased and sold; or the value for calculating import tax according to the provisions of the law on customs, plus (+) import tax, plus (+) special consumption tax, plus (+) value added tax (if any) for imported assets) (according to the provisions of Point a of this Clause).

To ensure more timely determination of the price for calculating registration fee for cars and motorbikes that are not included in the Registration Fee Calculation Price List, the Ministry of Finance proposes to amend and supplement the regulations on the price for calculating registration fee for cars and motorbikes that are not included in the Registration Fee Calculation Price List in Clause 2, Article 6 of Decree No. 140/2016/ND-CP as follows: "In case of arising a type of property that at the time of submitting the registration fee declaration is not included in the Registration Fee Calculation Price List issued by the Ministry of Finance, the Director of the Tax Department shall decide on the price for calculating registration fee according to the principle that the minimum registration fee price is the transfer price of the property on the market as prescribed in Point a of this Clause to serve as the basis for calculating registration fee".