Circular No. 20/2019/TT-BTC amending and supplementing some articles of Circular No. 301/2016/TT-BTC guiding stamp duty.

CIRCULAR

AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF THE CIRCULAR NO. 301/2016/TT-BTC DATED NOVEMBER 15, 2016 ON FEES FOR REGISTRATION

Pursuant to the Law on Fees and Charges No. 97/2015/QH13 dated November 25, 2015;

Pursuant to the Government Decree No. 140/2016/NĐ-CP dated October 10, 2016 on fees for registration;

Pursuant to the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019 amending and supplementing certain provisions of the Government Decree No. 140/2016/NĐ-CP dated October 10, 2016 on fees for registration;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the State Revenue总局局长的提议；

The Minister of Finance promulgates this Circular amending and supplementing certain provisions of the Circular No. 301/2016/TT-BTC dated November 15, 2016 guiding on fees for registration as follows:

Article 1. Amending and supplementing certain provisions of Circular number

1. Economic organizations conducting foreign exchange trading agency activities; economic organizations conducting foreign currency receipt and payment service provision activities; economic organizations conducting border country currency exchange agency activities.

"This Circular guides on the objects subject to fees for registration, the value for calculating fees for registration, the rate of fees for registration, and exemptions from fees for registration."

2. Point a Clause 2, point b Clause 3 and point d Clause 3 Article 3 shall be amended and supplemented as follows:

"2. Value for calculating fees for registration for houses

a) The value for calculating fees for registration for houses is the price issued by the People's Committee of the province in accordance with the laws on construction at the time of declaration of fees for registration.

The Department of Finance shall take the lead in coordinating with the Department of Construction and other relevant agencies at the local level based on the provisions of point b Clause 1 Article 6 of the Government Decree No. 140/2016/NĐ-CP dated October 10, 2016 on fees for registration, amended and supplemented in Clause 1 Article 1 of the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019, and guided in Clause 2 of this Article to establish the value for calculating fees for registration for houses to submit to the People's Committee of the province for issuance of the Table of Values for Calculating Fees for Registration for Houses applicable in the locality.

3. Value for calculating fees for registration for other assets

b) The value for calculating fees for registration for assets such as cars, similar vehicles (hereinafter referred to as cars), and motorcycles specified in Clause 6, Clause 7 Article 2 of the Government Decree No. 140/2016/NĐ-CP dated October 10, 2016 on fees for registration (excluding trailers or semi-trailers pulled by cars) is the price in the Decision on the Table of Values for Calculating Fees for Registration issued by the Ministry of Finance (hereinafter referred to as the Table).

The Table serves as the basis for determining the value for calculating fees for registration for new cars and motorcycles and is determined according to the criteria of vehicle type, brand, model (or trade name; trade name and model code if available for cars), engine displacement or power or permitted load capacity (or towed), number of people allowed to carry (including driver), country of manufacture of cars and motorcycles on the Certificate of Technical Quality and Environmental Protection or Notification of Exemption from Technical Quality and Environmental Protection Inspection or Type Approval Certificate issued by the Vietnamese Inspection Authority or Factory Quality Inspection Certificate for Motor Vehicles. For the criterion of engine displacement of cars, the unit of measurement is rounded up to one decimal place as follows: ≥ 5 rounds up, < 5 rounds down.

In case new types of cars and motorcycles not included in the Table arise at the time of submitting the declaration form for fees for registration, the Tax Authority shall base on the database provided for in Clause 1 Article 1 of the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019 to determine the value for calculating fees for registration for each newly arising type of car and motorcycle (for cars, according to the model). The General Department of Taxation shall notify the Tax Branches of the unified application of the value for calculating fees for registration within three working days from the date of receiving valid declaration forms for fees for registration.

Cars and motorcycles not included in the Table are those with one of the criteria specified herein not matching any criteria in the Table.

d) For assets that are subject to fees for registration and have been used (except houses, land, and used assets imported and registered for ownership for the first time with the value for calculating fees for registration determined based on the database for imported assets as stipulated in Clause 1 Article 1 of the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019), the value for calculating fees for registration is the remaining value calculated based on the period of use of the asset.

The remaining value of the asset equals the new value of the asset multiplied by (x) the percentage of remaining quality of the asset, wherein:

d.1) The new value of the asset is determined in accordance with the guidance in Clause 2 Article 6 of the Government Decree No. 140/2016/NĐ-CP dated October 10, 2016 on fees for registration, amended and supplemented in Clause 1 Article 1 of the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019 and point b of this clause.

d.2) The percentage (%) of remaining quality of the asset before registration is determined as follows:

- New asset: 100%.

- Used for one year: 90%

- Used for more than one to three years: 70%

- Used for more than three to six years: 50%

- Used for more than six to ten years: 30%

- Used for more than ten years: 20%

For used assets, the period of use is calculated from the year of production to the year of declaration for fees for registration.

d.3) For used cars and motorcycles not included in the Table, the value for calculating fees for registration is the remaining usage value of a comparable model with a value for calculating fees for registration within the group of models already in the Table.

A comparable model is determined as follows: cars and motorcycles of the same origin, same brand, same engine displacement or power, same number of people allowed to carry (including driver), and models with equivalent characters to the models of cars and motorcycles already in the Table.

If there are multiple comparable models in the Table, the tax authority determines the value for calculating fees for registration according to the principle of taking the highest value for calculating fees for registration.

For used cars and motorcycles not included in the Table and for which a comparable model cannot be determined, the tax authority bases on the database provided for in Clause 1 Article 1 of the Government Decree No. 20/2019/NĐ-CP dated February 21, 2019 to determine the value for calculating fees for registration.”

3. Clause 5 and Clause 6 of Article 4 shall be amended and supplemented as follows:

“Article 4. Rate of stamp duty for transfer of property (%)

5. Cars, trailers, semi-trailers pulled by cars, similar vehicles, cars carrying up to nine passengers, cargo vans, and cars carrying both passengers and goods (cargo pickup trucks): the rate of collection for these vehicles shall be implemented according to the provisions of Clause 2 of Article 1 of Decree No. 20/2019/NĐ-CP dated February 21, 2019 of the Government.

Based on the type of vehicle and the load capacity recorded in the Certificate of Technical Quality and Environmental Protection issued by the Vietnamese Inspection Authority, the Tax Authority shall determine the rate of stamp duty for cars, trailers, semi-trailers pulled by cars, and similar vehicles according to the provisions of this clause.

The Tax Authority shall determine the rate of stamp duty for cars based on:

- The number of seats in the car is determined according to the manufacturer's design.

- Load capacity.

- The type of vehicle shall be determined as follows:

In cases of imported vehicles, the basis for determination by the Inspection Authority is recorded in the "Type of Vehicle" section of the Certificate of Technical Quality and Environmental Protection for Imported Motor Vehicles or the Notification of Exemption from Inspection of Technical Quality and Environmental Protection for Imported Motor Vehicles issued by the Vietnamese Inspection Authority;

In cases of domestically produced or assembled vehicles, the basis is the "Type of Vehicle" section recorded in the Certificate of Technical Quality and Environmental Protection for Domestic Production and Assembly or the Quality Inspection Report for Motor Vehicles issued for use.

If the "Type of Vehicle" (type of vehicle) section in the aforementioned documents does not specify that it is a cargo truck, then the rate of stamp duty applicable to passenger cars shall be applied.

The Public Security Agency issuing vehicle registration plates shall check the type of vehicle. If they discover that the Certificate of Technical Quality and Environmental Protection, Notification of Exemption from Inspection of Technical Quality and Environmental Protection for Imported Motor Vehicles, or Quality Inspection Report for Motor Vehicles issued by the Vietnamese Inspection Authority incorrectly records the type of cargo truck or passenger car, leading to an inappropriate stamp duty rate, they shall promptly notify the Inspection Authority to re-determine the type of vehicle before issuing the license plate. If the Inspection Authority re-determines the type of vehicle, leading to a recalculation of the stamp duty rate, the Public Security Agency shall transfer the file along with verification materials to the Tax Authority to issue a notice of stamp duty collection in accordance with regulations.

6. For foreign diplomatic license plate vehicles, foreign license plate vehicles, and international license plate vehicles of foreign organizations and individuals specified in Clause 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government, when transferred to other organizations or individuals in Vietnam (not falling under the scope of Clause 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government), the transferee organization or individual must complete the declaration procedures, pay import tax, special consumption tax, value-added tax as prescribed, and pay stamp duty at the initial collection rate as stipulated by the People's Councils of provinces and centrally-administered cities. The value for calculating stamp duty in this case is the remaining value of the asset determined at the time of declaring stamp duty according to the guidance at point d.3, Clause 3 of this Circular.

For foreign license plate vehicles where the owner is a foreigner (not falling under the scope of Clause 2, Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government), if they have declared and paid stamp duty at the initial collection rate, in the event that the foreigner transfers the asset to other organizations or individuals in Vietnam, the transferee organization or individual must declare and pay stamp duty at the time of registering ownership and usage rights at a rate of 2%.

4. Point c of Clause 3, Clause 15, Point c of Clause 16, and Clause 21 of Article 5 shall be amended and supplemented as follows:

“Article 5. Exemption from stamp duty

Exemption from stamp duty shall be implemented according to the provisions of Article 9 of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government on stamp duty, which has been amended and supplemented at Clause 3 of Article 1 of Decree No. 20/2019/NĐ-CP dated February 21, 2019 of the Government, specifically as follows:

3. Land granted or leased by the State in the form of a lump sum payment for the entire lease period for the following purposes:

c) Investment in infrastructure construction (regardless of whether it is within or outside industrial zones or export processing zones), investment in building houses for sale, including cases where organizations or individuals receiving the transfer continue to invest in infrastructure construction or build houses for sale. In these cases, if registering ownership or usage rights for leasing or self-use, stamp duty must be paid.

15. Houses and land compensated or resettled (including houses and land purchased with compensation or support funds) when the state expropriates houses and land according to the law, and the organizations or individuals whose houses and land were expropriated have already paid stamp duty (or were exempted from paying stamp duty or had stamp duty deducted when calculating compensation for expropriated houses and land according to the law).

The exemption from the stamp duty provided for in this clause shall apply to the subjects whose houses and land are expropriated.

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:

c) Assets that have been granted certificates of ownership and use in the name of a member of a household (including joint ownership assets), when dividing such assets among members of the household according to the law and registering again;

Members of the household must be related family members as defined by the Law on Marriage and Family and share the same permanent residence address as the person named on the certificate of ownership and use.

21. Fire trucks, ambulances, X-ray vehicles, towing vehicles (including tow trucks and vehicle carriers), garbage trucks, water spraying vehicles, watering vehicles, water tank trucks, street sweeping vehicles, waste suction vehicles, dust suction vehicles; specialized vehicles for disabled veterans, war invalids, and disabled persons registered in the name of disabled veterans, war invalids, and disabled persons.”

Article 2. Repeal certain provisions of Circular No. 301/2016/TT-BTC dated November 15, 2016 guiding stamp duty.

2. Point b and point d Clause 16, Clause 23 and Clause 25 of Article 5; Article 6.

1. This Circular takes effect from June 1, 2019.

Article 3. Effectiveness

2. During implementation, in case of difficulties, organizations and individuals are requested to promptly report to the Ministry of Finance for study and guidance./.

- National Assembly, People's Council, People's Committee, Department of Finance, Taxation Department, State Treasury of provinces and centrally governed cities;