Change the way to calculate car registration fees
The tax authority will update the registration fee calculation price when the car price changes by 5% or more instead of only updating if the price fluctuates by 20% or more as it does now.
In the draft Decree Amending and supplementing a number of articles of Decree No. 140/2016/ND-CP dated October 10, 2016 of the Government on registration fees, the Ministry of Finance proposed to amend the fluctuation level of car and motorbike transfer prices from 20% or more to 5% or more compared to the Price List to adjust the Price List for calculating registration fees.
This means that the tax authority will update the registration fee calculation price when the car price changes by 5% or more instead of only updating if the price fluctuates by 20% or more as it does now.
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| Changes in the way registration fees are calculated when car prices fluctuate to be more in line with reality. |
This, according to the Ministry of Finance, is to suit reality and meet tax management requirements, ensuring that the Price List is adjusted and supplemented promptly.
According to Decree 140/2016, tax authorities only update the registration fee calculation price when the car price changes by 20% or more. Manufacturers say that this regulation is no longer reasonable. Price changes of up to 20% for cars rarely happen because this is a large difference.
According to the report of the Vietnam Automobile Manufacturers Association (VAMA), in the period 2015-2017, depending on the car model, the price decrease fluctuation was generally from 2-7%; the price increase fluctuation was generally from 2-6%.
In case of new cars and motorbikes not included in the price list or cars and motorbikes included in the price list whose transfer price on the market increases or decreases by 5% or more compared to the price in the price list for calculating registration fees, the Tax Department shall summarize and report to the General Department of Taxation before the 10th day of the last month of the quarter.
The General Department of Taxation shall issue the adjusted and supplemented price list for calculating registration fees before the 25th day of the last month of the quarter to apply to the first day of the following quarter. The adjusted and supplemented price list for calculating registration fees shall be issued in accordance with the regulations on issuing the prescribed price list for calculating registration fees or based on the average market transfer price in the localities.
