Circular No. 2932-TC/TCT regarding the payment of stamp duty

LETTER

OF THE MINISTRY OF FINANCE NUMBER 2932TC/TCT DATED APRIL 3, 2001
REGARDING PAYMENT OF PRE-REGISTRATION FEES

Dear: Provincial and Central City Tax Departments

The Ministry of Finance has received comments from some localities regarding the pre-registration fees for watercraft engines and motors installed on ships without documents verifying legal origin. Regarding this issue, the Ministry of Finance provides the following opinion:

According to paragraph b point 4 section II Circular No. 28/2000/TT-BTC dated April 18, 2000 of the Ministry of Finance, organizations and individuals with assets subject to pre-registration fees must provide tax authorities with: "Documents verifying legal origin of property; Legal purchase invoices for property (for cases involving sale, transfer, or exchange of property where the transferring party is an organization or individual engaged in production or business activities); or confiscated goods sales invoices (for cases involving purchases of confiscated items); or decisions on asset transfer, transfer, liquidation (for cases involving administrative state agencies and non-profit organizations not engaged in production or business activities implementing asset transfers to other organizations or individuals); or property transfer documents signed between the transferring party and receiving party with confirmation from a Notary Public or competent authority (for cases of property transfer between individuals or legal entities not engaged in production or business activities)."

Therefore, as a general principle, real estate, automobiles, motorcycles, watercrafts (including water engines), hunting rifles, sports guns without documents verifying legal origin are not eligible to declare and pay pre-registration fees before registering ownership or use.

However, currently there are still some individuals and households who have purchased floating water engines and combustion motors on the market for installation in watercrafts and agricultural vehicles directly for personal use (not for business). Therefore, the Ministry of Finance requests Tax Departments to coordinate with local state management agencies, report to Provincial People's Committees measures to collect pre-registration fees from newly assembled or constructed watercrafts and agricultural vehicles using water engines and combustion motors according to the following direction:

1. For watercrafts and agricultural vehicles losing documents due to objective reasons such as natural disasters, floods, unexpected accidents,... then they can pay pre-registration fees after the asset owner has a document confirming loss of files from a competent authority (the vehicle inspection agency that issued the legal property ownership certificate, local police or People's Committee at the place of permanent residence registration).

2. For watercrafts and agricultural vehicles purchased from individuals who have used them before, must have purchase contracts signed between both parties (with confirmation by local authorities) and documents verifying legal origin of assets (property ownership certificates and import source declaration forms or purchase invoices...). In cases where there are no documents verifying legal asset origin, the owner must submit a written statement about the legal origin of the property (confirmed by the People's Committee at the place of permanent residence registration).

3. For water engines and combustion motors purchased from organizations or individuals engaged in business activities, must have sales invoices (issued by the Ministry of Finance) and if they are imported water engines or combustion motors, must also provide import source declaration forms or customs declarations (the tax authority will not collect pre-registration fees for imported assets without import source declaration forms or customs declarations).

In cases mentioned above, if pre-registration fees have been paid but due to lack of documents the state management agency responsible for registering ownership does not issue registration certificates, then the amount of pre-registration fees already paid into the State budget will not be refunded.

The Ministry of Finance informs Tax Departments to be aware and implement accordingly.