Financial obligations when transferring vehicles in Vietnam

by NguyenThiThuTrang

Financial obligations when transferring vehicles; Transferring a vehicle is a mandatory procedure when buying and selling motorbikes; or other means of road transport. What financial obligations do you have to fulfill when transferring a car? The following are answers to financial obligations when transferring vehicles of Lawyer X on this issue.

Legal grounds

Circular 256/2016/TT-BTC;

Circular 111/2017/TT-BTC;

Circular 301/2016/TT-BTC.

Consulting content

To know the financial obligations when switching vehicles; then you need to know what is the procedure to transfer the car title. Changing the name of a vehicle has two basic steps: Drafting and signing a contract to buy/sell/donate/inherit… the car; cancel the owner’s license plate and vehicle registration and register the new vehicle.

So there are 02 financial obligations when transferring a car that the car buyer or seller needs to pay attention to:

– Notarization/authentication fee at a competent agency; Registration fee.

Notarization/authentication fee when transferring name

The authorized place to notarize/certified the contract of sale, donation, inheritance… the vehicle includes

– Notary office;

– District Justice Department; district; town; provincial city; (hereinafter referred to as the Justice Department) has the authority and responsibility to certify contracts; transactions involving movable assets;

– Commune People’s Committee; ward; townships (hereinafter referred to as commune-level People’s Committees) have the authority and responsibility to authenticate contracts; transactions involving movable assets.

Notarization fee of purchase and sale contract; donation of other property; capital contribution with other assets: Calculated on the value of the property; Specifically, the converted asset value is as follows:

No.Value of property or value of contract, transactionFees (VND/case)
1Under 50 million VND50 thousand
2
From 50 million VND to 100 million VND
100 thousand
3From over 100 million VND to 01 billion VND0.1% of property value or value of contract or transaction
4From over 01 billion VND to 03 billion VNDVND 01 million + 0.06% of the asset value or the value of the contract or transaction exceeding VND 01 billion
5From over 03 billion VND to 05 billion VND2.2 million VND + 0.05% of the asset value or contract value, transaction exceeds 03 billion VND
6From over 05 billion VND to 10 billion VND3.2 million VND + 0.04% of the asset value or contract value, transactions exceeding 05 billion VND
7From over 10 billion VND to 100 billion VND5.2 million VND + 0.03% of the asset value or contract value, transaction exceeds 10 billion VND
8Over 100 billion VND32.2 million VND + 0.02% of the asset value or contract value, transaction exceeds 100 billion VND (maximum collection rate is 70 million VND/case).
Financial obligations when transferring cars in Vietnam

Registration fee when changing car

The registration fee is one of the financial obligations when changing cars

The registration fee when changing cars are motorbikes and vehicles similar to motorbikes

Registration fee payable = registration fee collection rate (%) x Registration fee calculation price

*Registration fee is calculated as a percentage (%)

Normally for this rate is 2%; but in some special cases this rate can be 5%; or 1%, specifically as follows:

  • Motorcycles of organizations and individuals in centrally run cities; provincial city; The town where the provincial People’s Committee is headquartered shall pay the registration fee for the first time at the rate of 5%.

Cities directly under the Central Government, cities under provinces; town where the Provincial People’s Committee; The centrally run city where the head office is located is determined according to the state administrative boundaries at the time of registration fee declaration,

In there:

Cities directly under the Central Government include all districts, urban districts, regardless of urban districts; or suburban districts; urban or rural; Provincial city; and the town where the provincial People’s Committee is located including all wards; communes of the city; town, regardless of whether it is inner city, inner city or suburban commune, suburban town.

For motorbikes paying registration fee for the second time onward (which is a motorbike that has been declared and paid by the property owner in Vietnam, the next time of declaration and payment of registration fee is determined to be the first registration fee payment). 2nd onwards) is applied the rate of 1%.

Where the property owner has declared; pay the registration fee for motorbikes of 2%; then transferred to organizations and individuals in the areas specified at Point a of this Clause, the registration fee shall be paid at the rate of 5%.

In case the vehicle has already paid the registration fee at the rate of 5%, the next transfer will pay the registration fee at the rate of 1%.

For motorbikes, the registration fee is declared and paid from the 2nd time onwards; The property owner declaring the registration fee must present to the Tax office the certificate of motorcycle registration; motorbikes or vehicle registration dossiers paid by the police for registration. The area for which the fee has been declared and paid the previous time is determined according to the “Permanent place of residence”; “Registered place of permanent population”;

Or “Address” stated in the motorcycle registration paper; motorcycle; or vehicle registration certificate; transfer certificate; move in the vehicle registration file; and determined according to the state administrative boundaries at the time of registration fee declaration.

Price to calculate registration fee

Is the residual value of the property equal to the value of the new property multiplied by (x) the remaining quality percentage of the asset, where:

– The new property value is determined according to the instructions at Points a and b of this Clause.

– The percentage (%) of the remaining quality of the registered assets is determined as follows:

New property: 100%;
Used time in 1 year: 90%;
Used time from over 1 to 3 years: 70%;
Used time from over 3 to 6 years: 50%;
Used time from over 6 to 10 years: 30%;
Time used over 10 years: 20%.
For used assets, the time used is counted from the year of manufacture to the year of the declaration of the registration fee.

Registration fee when changing car is a car or a vehicle similar to a car

Registration fee payable = registration fee collection rate (%) x Registration fee calculation price

This is the formula for calculating the Registration Fee – the financial obligation when transferring a car to a car; or similar automobile, details as follows:

*Registration fee rate (%)

Cars, trailers or semi-trailers are towed by cars and similar vehicles the toll rate is 2%.

Private:

Passenger cars with 09 seats or less pay the first registration fee at the rate of 10%. In case it is necessary to apply a higher rate to suit the actual conditions in each locality, the People’s Council of the province shall decide to increase the rate but not exceed 50% of the rate;

Pay the first registration fee at a rate equal to 60% of the first registration fee for passenger cars with 09 seats or less; For vehicle type:

Cars just carrying people; medium-sized cargo (cargo pick-up truck) with a permissible transport volume of less than 1,500 kg; and has 5 or fewer seats;
VAN trucks with the allowable transport volume of less than 1,500 kg;

– Passenger cars with 09 seats or less; automobiles that carry both people and goods (cargo pick-up cars) with a transport volume of less than 1,500 kg and have 5 seats or less;

VAN trucks with the allowable transport volume of less than 1,500 kg shall pay the registration fee for the second time onward at the rate of 2% and uniformly applied nationwide.

Based on the type of vehicle specified in the Certificate of quality, technical safety and environmental protection issued by the Vietnamese registry, the tax authority shall determine the registration fee for automobiles, trailers or vehicles. semi-trailers are towed by cars, similar vehicles according to regulations.

*Prices calculate registration fee

Is the residual value of the property equal to the value of the new property multiplied by (x) the remaining quality percentage of the asset, where:

– The new property value is determined according to the instructions at Points a and b of this Clause.

– The percentage (%) of the remaining quality of the registered assets is determined as follows:

New property: 100%;
Used time in 1 year: 90%;
Used time from over 1 to 3 years: 70%;
Used time from over 3 to 6 years: 50%;
Used time from over 6 to 10 years: 30%;
Time used over 10 years: 20%.
For used assets, the used time is counted from the year of manufacture to the year of the declaration of the registration fee.

Services of LawyerX

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Please contact us immediately if you have any questions about Financial obligations when transferring vehicles in Vietnam

Contact LSX Lawfirm

Finally, we hope this article is useful for you to answer the question about: “Financial obligations when transferring vehicles in Vietnam”. If you need any further information, please contact  LSX Law firm+84846175333 or Email: hoangson@lsx.vn

Frequently asked questions

Is the bus registration fee waived?

Pursuant to Circular 301/2016/TT-BTC regulating public passenger transport by bus using clean energy.
Public passenger transport buses using clean energy that are exempt from registration fees are buses using liquefied petroleum gas, natural gas, and electricity to replace petrol and oil according to regulations and are exempt from registration fees.

Can poor households be exempted from registration fees when transferring cars?

Pursuant to Circular 301/2016/TT-BTC stipulating the exemption of registration fees for poor households in the case of houses and houses owned by poor households. As for car title transfer, there is no regulation on registration fee exemption for poor households.

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