Decree No. 140/2016/ND-CP on stamp duty

DECREE

Regarding stamp duty

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Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Fees and Registration Fees dated November 25, 2015;

Pursuant to the Law on Tax Administration November 29, 2006 and Law amended and supplemented certain provisions of the Law on Tax Administration The Government issues this Decree to stipulate the mechanism and policies to encourage the development of rooftop solar power self-generation and self-consumption.;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on stamp duty.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the objects subject to stamp duty, the persons liable for stamp duty, the basis for calculating stamp duty, debt recording, exemption from stamp duty, declaration, collection, payment, and management of stamp duty.

Article 2. Objects Subject to Stamp Duties

1. Houses, land.

2. Hunting guns, training and sports competition guns.

3. Ships, including barges, motorboats, tugboats, push boats.

4. Boats, including yachts.

5. Aircraft.

6. Two-wheeled motorcycles, three-wheeled motorcycles, motorbikes, and similar vehicles required to be registered and issued license plates by authorized state agencies (hereinafter collectively referred to as motorbikes).

7. Motor vehicles, trailers, or semi-trailers pulled by motor vehicles, and similar vehicles must be registered and have license plates issued by competent state agencies.

8. The shell, chassis assembly, engine assembly of assets specified in Clauses 3, 4, 5, 6, and 7 of this Article must be registered with competent state agencies when replaced.

The Ministry of Finance shall provide guidance on implementing the provisions of this Article.

Article 3. Persons Liable for Stamp Duty

Organizations and individuals having assets subject to stamp duty as prescribed in Article 2 of this Decree must pay stamp duty when registering ownership or usage rights with competent state agencies, except in cases exempted from stamp duty as provided in Article 9 of this Decree.

Article 4. Application of International Treaties

In case international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Decree, such treaties shall be applied according to their provisions.

Chapter II

BASES FOR CALCULATING STAMP DUTIES

Article 5. Basis for Calculating Stamp Duty

The basis for calculating stamp duties is the assessed value of stamp duties and the rate of stamp duty collection (%).

Article 6. Price for Calculating Stamp Duty

1. Price for calculating stamp duty on houses and land

a) The price for calculating stamp duty on land is the land price listed in the Land Price Table issued by the People's Committee of provinces or centrally-administered cities in accordance with laws on land at the time of declaring stamp duty.

b) The assessed value for stamp duties on houses is the price issued by the People's Committee of the province or centrally governed city according to the construction law at the time of declaring stamp duties.

Specifically:

- The price for calculating stamp duty on state-owned houses sold to tenants in accordance with laws on selling state-owned housing to tenants is the actual sale price recorded on the sales invoice issued by the decision of the People's Committee of provinces or centrally-administered cities.

- The price for calculating stamp duty on houses purchased through public auctions in accordance with laws on bidding and auctioning is the actual winning bid price recorded on the sales invoice.

c) If the price of houses and land in the land use right transfer contract or house purchase contract is higher than the price issued by the People's Committee of provinces or centrally-administered cities, then the price for calculating stamp duty on houses and land is the price in the land use right transfer contract or house purchase contract.

2. Price for calculating stamp duty on other assets

a) The price for preliminary property tax on other assets is the actual market transfer price of the asset;

The actual market transfer price of assets is based on legitimate sales invoices; production cost (for self-produced or manufactured assets for consumption); customs value for duty purposes as prescribed by laws on customs, plus import tax, plus special consumption tax, plus value-added tax (if applicable) (for imported assets).

For used assets (excluding imported used assets), the price for calculating stamp duty is determined based on the period of use and residual value of the asset.

b) The Ministry of Finance shall issue a Table of Prices for Calculating Stamp Duty as prescribed in point a of this clause to serve as the basis for calculating stamp duty on assets specified in Clause 6, Clause 7 of Article 2 of this Decree and the shell, chassis assembly, engine assembly of assets specified in Clause 6, Clause 7 of Article 2 of this Decree.

If the actual market transfer price of assets is lower than the price for calculating stamp duty issued by the Ministry of Finance, the price for calculating stamp duty shall be the price issued by the Ministry of Finance.

In case new assets arise that are not included in the Table of Prices for Calculating Stamp Duty issued by the Ministry of Finance at the time of submitting the stamp duty declaration form, the Tax Authority shall apply the price for calculating stamp duty as prescribed in point a of this clause as the basis for calculating stamp duty.

Within three working days from the date of registration for stamp duty, the Tax Authority shall report to the Ministry of Finance to issue supplementary prices for calculating stamp duty.

If the actual market transfer price of assets fluctuates by 20% or more compared to the price for calculating stamp duty in the Table of Prices for Calculating Stamp Duty, the Ministry of Finance shall issue supplementary prices for calculating stamp duty to ensure that the price for calculating stamp duty closely matches the actual market transfer price of assets.

The Ministry of Finance shall provide guidance on implementing the provisions of this Article.

Article 7. The rate of stamp duty for registration tax (%)

1. Houses and land: the rate of collection is 0.5%.

2. Hunting guns and sports training and competition guns shall be taxed at 2%.

3. Ships, barges, speedboats, tugboats, push boats, boats, yachts, aircraft: the rate of collection is 1%.

4. Motorcycles shall be taxed at 2%.

Specifically:

a) Motorcycles owned by organizations and individuals located in centrally governed cities, provincial cities, or towns where the provincial People's Committee has its headquarters shall pay the first-time registration tax at a rate of 5%.

b) For motorcycles paying the second or subsequent registration taxes, the rate shall be 1%. In cases where the owner has declared and paid the registration tax at a rate of 2% and then transferred the motorcycle to an organization or individual within the area specified in point a of this clause, they shall pay the registration tax at a rate of 5%.

5. Cars, trailers, or semi-trailers pulled by cars, and similar vehicles shall be taxed at 2%.

Specifically:

a) Passenger cars with up to 9 seats shall pay the first-time registration tax at a rate of 10%. Where higher rates are deemed necessary to reflect local conditions, the Provincial People's Council or the People's Council of a centrally governed city may decide to increase the rate but not exceeding 50% of the general rate.

b) Passenger cars with up to 9 seats shall pay the second or subsequent registration taxes at a rate of 2% uniformly nationwide.

Based on the type of vehicle recorded in the Certificate of Technical Quality and Environmental Protection issued by the Vietnamese inspection agency, the tax authority shall determine the registration tax rate for cars, trailers, or semi-trailers pulled by cars, and similar vehicles according to the provisions of this clause.

6. For replacement parts such as frames, chassis, engines as stipulated in Clause 8, Article 2 of this Decree that require registration with competent state authorities, the corresponding registration tax rates for each type of asset shall apply.

The maximum limit for the registration tax rate for assets as provided in this Article is 500 million VND per asset/for the first registration, except for passenger cars with up to 9 seats, aircraft, and yachts.

The Ministry of Finance shall provide guidance on implementing the provisions of this Article.

Chapter III

DEBT RECORDING, EXEMPTION FROM STAMP DUTY FOR TRANSFER OF OWNERSHIP

Article 8. Recording of deferred payment of registration tax

1. Deferred payment of registration tax shall be allowed for land and houses attached to land owned by households and individuals who are eligible for deferred payment of land use fees under the laws governing land use fee collection. When settling the deferred registration tax debt, households and individuals must pay the registration tax based on the price of the house and land as prescribed by the People's Committee of the province or centrally governed city at the time of declaration of the registration tax.

2. If households and individuals eligible for deferred payment of registration tax under Clause 1 of this Article transfer, convert, or gift ownership rights of houses or land use rights to other organizations or individuals (except for cases of gifting houses and land among the subjects specified in Clause 10 of Article 9 of this Decree), they must settle all outstanding registration tax debts before transferring, converting, or gifting.

3. Procedures for recording stamp duty arrears

a) Households and individuals eligible for deferred payment of registration tax on houses and land as stipulated in Clause 1 of this Article shall declare the registration tax and submit the declaration form (including proof of eligibility for deferred payment of registration tax as stipulated in Clause 1 of this Article) in accordance with Clauses 1, 2, and 3 of Article 10 of this Decree.

b) The authority issuing certificates of land use rights, house ownership, and attached property shall review the application. If it confirms that the applicant is eligible for deferred payment of registration tax on houses and land as stipulated in Clause 1 of this Article, it shall record "Deferred Payment of Registration Tax" on the certificate before issuing it to the owner or user of the house and land.

c) Upon receiving applications for procedures related to the transfer, conversion, or gifting of house ownership or land use rights from households and individuals still owing registration tax, the authority issuing certificates of land use rights, house ownership, and attached property shall be responsible for transferring the application along with the "Information Transfer Form for Determining Financial Obligations Related to Land" to the Tax Authority to calculate and notify the household or individual owning the house and land to settle all outstanding registration tax debts before proceeding with the transfer, conversion, or gifting procedures.

Article 9. Exemption from Stamp Duty

1. Houses and land serving as the headquarters of diplomatic missions, consular offices, representative offices of international organizations under the United Nations system, and residences of heads of diplomatic missions, consular offices, and representative offices of international organizations under the United Nations system in Vietnam.

2. Assets (excluding houses and lands) of foreign organizations and individuals as follows:

a) Diplomatic missions, consular offices, and representative offices of international organizations within the United Nations system.

b) Diplomatic officials, consular officials, administrative and technical staff of diplomatic missions, consular offices, representatives of international organizations under the United Nations system, and members of their families who are not Vietnamese citizens or do not reside permanently in Vietnam and have been issued diplomatic identification cards or service identification cards by the Ministry of Foreign Affairs of Vietnam.

c) Organizations and individuals from foreign countries that are not subject to the provisions of points a and b of this clause but are exempted from or are not required to pay stamp duty pursuant to international commitments to which the Socialist Republic of Vietnam is a party.

3. Land allocated or leased by the State for the following purposes:

a) Public use as prescribed by the Law on Land.

b) Exploration and exploitation of minerals; scientific research pursuant to permits or confirmations by competent state authorities.

c) Investment in infrastructure construction (regardless of whether the land is within or outside industrial zones or export processing zones), investment in building houses for transfer. In these cases, when registering ownership and usage rights with competent state agencies for leasing or self-use, organizations and individuals granted land by the State or leased land must pay stamp duty.

If organizations and individuals receiving the transfer continue to invest in infrastructure construction or construction of houses for sale, they are exempted from paying the registration fee.

When organizations and individuals acquire transferred infrastructure or houses and register ownership and usage rights with competent state agencies, they must pay stamp duty.

4. Land granted, leased, or recognized for use for agricultural production, forestry, aquaculture, and salt production purposes.

5. Agricultural land transferred between households and individuals within the same commune, ward, or town to facilitate agricultural production as stipulated by the Land Law.

6. Agricultural land reclaimed by households and individuals in accordance with approved land use plans by competent state agencies, without disputes, and subsequently granted land use certificates by competent state agencies.

7. Land leased from the State on an annual payment basis or leased from organizations and individuals already having legitimate land use rights..

8. Houses and lands used for community purposes by religious organizations and worship facilities recognized or permitted by the State.

9. Land used for cemeteries or graveyards.

10. Houses and land inherited or given as gifts between: husband and wife; biological father and mother with biological children; adoptive father and mother with adopted children; father-in-law and mother-in-law with daughter-in-law; father-in-law and mother-in-law with son-in-law; paternal grandfather and grandmother with grandson; maternal grandfather and grandmother with granddaughter; siblings. These properties now have been granted land use certificates, house ownership certificates, and certificates for other assets attached to the land by competent state agencies.

11. Residential houses established by households and individuals through individual housing development as prescribed by the Housing Law.

12. Financial lease assets transferred to the lessee upon expiration of the lease term through asset assignment or sale, the lessee is exempted from paying stamp duty; in the case where a financial leasing company purchases assets from units that have paid stamp duty and then leases them back to the selling unit, the financial leasing company is exempted from paying stamp duty.

13. Special assets, dedicated assets, management assets specifically used for national defense and security.

14. Houses and land belonging to state property used as headquarters for state agencies, people's armed forces units, public institutions, political organizations, political-social organizations, social-professional organizations, and social organizations.

15. Houses and land compensated (including houses and land purchased with compensation or support funds) when the State reclaims houses and land according to the law.

16. Assets of organizations and individuals that have been issued certificates of ownership and use rights when re-registering ownership and use rights shall be exempted from payment of the stamp duty in the following cases:

a) Assets that have been certified with ownership and usage certificates by competent authorities of the Democratic Republic of Vietnam, the Provisional Revolutionary Government of the Republic of South Vietnam, the Socialist Republic of Vietnam, or competent authorities under the old regime, and now are being renewed with new certificates without changing the owner of the assets.

b) Assets of state-owned enterprises that have been transformed into joint-stock companies or other forms of restructuring state-owned enterprises as prescribed by law.

c) Assets that have been certified with ownership and usage certificates for households and now are being registered again when such assets are divided among household members.

d) Assets of organizations and individuals that have been certified with ownership and usage certificates and need to be re-registered due to loss, damage, fading, or deterioration of the certificates. Competent authorities will issue new ownership and usage certificates upon request.

đ) In cases where additional land area is generated when issuing new land use certificates but the boundaries of the plot remain unchanged, the additional land area is exempted from stamp duty.

e) Organizations and individuals granted land by the State and have been issued land use certificates, must convert to lease land with a lump-sum payment for the entire lease period as prescribed by the Land Law from the date this Decree takes effect.

17. Assets of organizations and individuals that have paid stamp duty (except those exempted from paying stamp duty) transferred to other organizations and individuals for registration of ownership and usage are exempted from paying stamp duty in the following cases:

a) Organizations, individuals, and cooperative members contributing their assets to businesses, credit organizations, cooperatives, or when businesses, credit organizations, or cooperatives dissolve, divide, or withdraw capital contributions to organization or individual members who previously contributed assets.

b) Assets transferred internally within a business or administrative institution transferring assets internally within a budgetary unit according to the decision of the competent authority.

18. Assets of organizations and individuals that have paid the stamp duty are divided or contributed due to division, separation, consolidation, merger, or renaming of organizations according to the decision of the competent authority.

19. Assets of organizations and individuals that have paid the stamp duty are transferred to another locality for use without changing the owner.

20. Commiseration houses, solidarity houses, houses supported with humanitarian nature, including land attached to these houses, registered in the name of the recipient.

21. Fire trucks, ambulances, X-ray vehicles, towing vehicles, garbage trucks, water spraying vehicles, irrigation vehicles, water tankers, street sweeping vehicles, septic tank cleaning vehicles, dust collection vehicles; specialized vehicles for disabled veterans, war invalids, and disabled persons registered in the name of disabled veterans, war invalids, and disabled persons.

22. Aircraft used for commercial cargo and passenger transportation.

23. Fishing boats and vessels.

24. The shell, frame assembly, engine assembly specified in Clause 8 of Article 2 of this Decree shall be replaced and must be re-registered within the warranty period.

25. Production facility workshops; warehouses, dining halls, parking lots of production and business facilities.

26. Housing and residential land of poor households; housing and residential land of ethnic minority people in communes, wards, towns located in difficult areas, Central Highlands; housing and residential land of household families and individuals in communes under the Special Difficult Commune Economic-Social Development Program, mountainous areas, remote regions.

27. Motorless watercraft with total deadweight up to 15 tons; motorized watercraft with main engine power up to 15 horsepower; watercraft with passenger capacity up to 12 persons; high-speed passenger watercraft and container transport watercraft.

28. Houses and lands of entities implementing socialization in education-training, vocational training; healthcare; culture; sports; environment fields according to the provisions of the law on registration of land use rights and house ownership for these activities.

29. Houses and lands of non-state entities registering land use rights and house ownership for activities in education-training; healthcare; culture; sports; science and technology; environment; society; population, family, child protection and care fields according to the provisions of the law, except for cases stipulated in Clause 28 of this Article.

30. Land and real estate of science and technology enterprises registered for land use rights and ownership rights in accordance with the provisions of the law.

31. Public passenger transport vehicles using clean energy.

The Ministry of Finance shall provide guidance on implementing the provisions of this Article.

Chapter IV

REGIME OF DECLARATION, COLLECTION, PAYMENT AND MANAGEMENT OF PRE-REGISTER FEES

Article 10. Declaration, collection, payment of pre-register fees

1. Pre-register fees are declared each time they arise.

Organizations and individuals having assets subject to pre-register fees have the responsibility to declare and submit the pre-register fee declaration form (including cases exempted from pre-register fees as provided for in Article 9 of this Decree) to the Tax Authority when registering ownership and usage rights with competent state agencies.

2. Place of submission of pre-register fee declaration forms

- For real estate assets: The pre-register fee declaration forms are submitted to the agency receiving applications for procedures related to registration and issuance of certificates of land use rights, house ownership and other property rights attached to the land according to the provisions of the Land Law.

- For other assets: The pre-register fee declaration forms are submitted to the local Tax District Office where the ownership and usage rights are registered, or submitted through the e-Government Portal of the General Department of Taxation for electronic tax declarations.

3. Pre-register fee declaration forms

a) For real estate assets:

- Pre-register fee declaration form according to Model No. 01 Appendix issued together with this Decree.

- Documents proving that the asset (or the owner of the asset) is exempt from pre-register fees (if applicable).

b) For other assets (excluding fishing vessels, inland waterway transport vessels, and newly built ships in Vietnam without original documents):

- Pre-register fee declaration form according to Model No. 02 Appendix issued together with this Decree.

- Legal documents regarding the sale, transfer of assets.

- Certificate of ownership and usage rights of the previous owner of the asset (for assets being registered for ownership and usage rights in Vietnam for the second time or more).

- Certificate of technical quality and environmental safety issued by the Vietnamese inspection agency (for automobiles, trailers or semi-trailers pulled by automobiles, similar types of vehicles).

- Documents proving that the asset or the owner of the asset is exempt from pre-register fees (if applicable).

c) For fishing vessels, inland waterway transport vessels, or newly built ships in Vietnam without original documents:

- Pre-register fee declaration form according to Model No. 02 Appendix issued together with this Decree;

- Notification or confirmation from the competent authority regarding the registration of ownership of watercraft and boats falling under the scope of registration.

d) In case of electronic pre-register fee declaration forms, it is the Pre-register Fee Declaration Form according to Model No. 01 (for real estate assets) and Model No. 02 (for other assets) Appendix issued together with this Decree, along with legal documents attached to the Pre-register Fee Declaration Form, which are implemented according to the regulations of the registration authorities when processing procedures for issuing certificates of ownership and usage rights of assets.

4. Time limit for issuance of notification and payment of pre-register fees

a) The Tax District Office issues a notification of payment of pre-register fees within three working days (for real estate assets) or one working day for other assets from the date of receipt of complete and valid application forms.

If the application forms are not valid, the Tax District Office returns the application forms to the agency receiving applications for procedures related to registration and issuance of certificates of land use rights, house ownership and other property rights attached to the land (for real estate pre-register fee application forms) or to the person owning the asset (for other asset pre-register fee application forms) within the time limit stipulated herein.

The notification of payment of pre-register fees for real estate assets is according to Model No. 03 Appendix issued together with this Decree; the notification of payment of pre-register fees for other assets is recorded directly on the pre-register fee declaration form of the asset.

In case of submitting pre-register fee declaration forms through the e-Government Portal of the General Department of Taxation, the notification of payment of pre-register fees will be returned via telephone, transaction tax e-account or email of organizations and individuals according to each electronic transaction code as prescribed in the electronic transaction regulations in the field of taxation.

b) The payer of the pre-register fee shall pay the pre-register fee into the State budget at the agencies and organizations collecting pre-register fees as prescribed in the Law on Tax Administration within thirty working days from the date of signing the notification of payment of pre-register fees by the tax authority.

5. The establishment and issuance of pre-register fee collection receipts shall be carried out in accordance with the regulations.

In case organizations and individuals pay the pre-register fee through banks using electronic methods, the electronic pre-register fee payment receipt will be transmitted by the bank to the e-Government Portal of the General Department of Taxation to sign and provide to authorized organizations and agencies connected to the tax authority. An electronically signed document serves as the basis for administrative procedures related to asset registration, and organizations and individuals do not need to provide paper receipts.

6. In case the inter-agency coordination process for administrative procedures in the issuance of certificates of ownership and usage rights of assets has different regulations on application forms, procedures, and processes for the collection and payment of pre-register fees, such regulations shall be followed.

The Ministry of Finance shall provide guidance on implementing the provisions of this Article.

Article 11. Management of stamp duty on initial registration

The agency collecting stamp duty on initial registration shall remit 100% of the collected stamp duty revenue to the State budget in accordance with the provisions of the law.

Chapter V

IMPLEMENTATION

Article 12. Effective Date

1. This Decree takes effect from January 1, 2017.

2. From the date this Decree takes effect, the following provisions cease to be effective:

a) Decree No. 45/2011/NĐ-CP dated June 17, 2011 of the Government on stamp duty on initial registration and Decree No. 23/2013/NĐ-CP dated March 25, 2013 of the Government amending and supplementing certain articles of Decree No. 45/2011/NĐ-CP dated June 17, 2011 on stamp duty on initial registration;

b) Provisions on declaration, collection, payment, and management of stamp duty on initial registration as stipulated in Decree No. 83/2013/NĐ-CP dated July 22, 2013 of the Government detailing implementation of certain articles of the Law on Tax Administration and the Law Amending and Supplementing Certain Articles of the Law on Tax Administration.

3. Repeal the following provisions:

a) Clause 2, Article 5 of Decision No. 13/2015/QĐ-TTg dated May 5, 2015 of the Prime Minister promulgating mechanisms and policies to encourage the development of public passenger transport by bus;

b) Clause 1, Article 5 of Decision No. 47/2015/QĐ-TTg dated October 5, 2015 of the Prime Minister on mechanisms and policies to encourage the development of inland waterway transportation.

Article 13. Responsibility for Implementation

1. The Ministry of Finance shall be responsible for coordinating with relevant ministries and agencies to develop procedures for electronic interconnection of administrative procedures in the issuance of certificates of ownership and use rights of assets subject to stamp duty on initial registration as specified in Article 2 of this Decree.

2. The Ministry of Transport shall be responsible for sharing information on vehicles to serve the construction of the Stamp Duty Initial Registration Fee Calculation Table by the Ministry of Finance and assist organizations and individuals in declaring and paying stamp duty on initial registration.

3. The Ministry of Public Security and the Ministry of Natural Resources and Environment shall be responsible for building an electronic connection system to handle administrative procedures related to asset registration; coordinate with the Ministry of Finance to control the legality of documents in electronic tax declarations.

4. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and related organizations and individuals shall be responsible for implementing this Decree./.