Circular No. 34/2013/TT-BTC amending and supplementing certain provisions of Circular No. 124/2011/TT-BTC dated August 31, 2011, of the Ministry of Finance guiding stamp duty.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 124/2011/TT-BTC dated August 31, 2011 guiding land registration fees

 on August 31, 2011 regarding land registration fees

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Pursuant to the Ordinance on Fees and Charges;

Pursuant to the Land Law 2003 and the detailed implementing decrees of the Government on the Land Law 2003;

On the basis of the Law on Tax Administration and the Government Decrees detailing the implementation of the Law on Tax Administration;

Pursuant to the Government Decree No. 45/2011/NĐ-CP dated June 17, 2011 on registration fees;

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

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 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 guiding the amendment and supplementation of certain provisions of Circular No. 124/2011/TT-BTC dated August 31, 2011 guiding land registration fees as follows:

Article 1. Amend Chapter I, Article 3 as follows:

1. Amend Clause 10, Article 3 as follows:

"10. Houses and land inherited, or given as gifts between: husband and wife; father and daughter; mother and son; foster father and foster daughter; foster mother and foster son; father-in-law and daughter-in-law; mother-in-law and son-in-law; grandfather and granddaughter; grandmother and grandson; brother, sister, and sibling. In these cases, when declaring land registration fees, the person receiving the property must present to the tax authority legal documents proving the relationship with the heir, giver, or recipient, or a confirmation from the People's Committee of the commune, ward, or town where the giver or recipient usually resides about the relationship above."

In this case, when declaring the stamp duty, the person receiving the property must present to the tax authority legal documents proving their relationship with the heir, donor, or grantor, or a confirmation from the People's Committee of the commune, ward, or town where the donor or recipient usually resides regarding such relationship.

2. Amend Clause 18, Article 3 as follows:

"18. Assets of organizations and individuals that have paid land registration fees and need to re-register ownership and usage rights due to division, separation, privatization, merger, consolidation, or name change according to the decision of the competent authority. If the name change is accompanied by a change in the owner of the asset, the new owner must pay the land registration fee."

3. Amend Clause 25 of Article 3 as follows:

3. Amend Clause 25, Article 3 as follows:

"25. Factory buildings of production facilities; warehouses, dining halls, parking lots of production and business facilities."

"Article 4. Basis for calculating stamp duty and rates of stamp duty

Article 2. Amend Chapter II, Article 4 as follows:

"Article 4. Basis for calculating land registration fees and rates of land registration fees

1. The basis for calculating land registration fees is the value subject to land registration fees and the rate of land registration fees expressed as a percentage.

2. Rates of land registration fees:

Determined as a percentage of the value of assets subject to land registration fees, specified in detail for each type of asset subject to land registration fees under Article 7 of Decree No. 45/2011/NĐ-CP dated June 17, 2011 of the Government on land registration fees and amended and supplemented at Clause 4, Article 1 of Decree No. 23/2013/NĐ-CP dated March 25, 2013 of the Government.

3. The amount of land registration fees payable shall be determined as follows:

The maximum amount of land registration fees payable to the state budget for one asset per registration is five hundred million dong, except for passenger cars with less than ten seats (including the driver), aircraft, and yachts."

The basis for calculating stamp duty is the price issued by the People's Committee of the province or centrally governed city.

Article 3. Amend Chapter II, Article 5 as follows:

"Article 5. Value for calculating land registration fees.

The value for calculating land registration fees is set by the People's Committee of the province or centrally governed city.

The Department of Finance shall coordinate with relevant departments to develop and submit to the People's Committee of the province or centrally governed city for decisions on establishing the Table of Values for Calculating Land Registration Fees as follows:

1. Principles for issuing the table of values for calculating land registration fees:

a) For land:

The value of land for calculating land registration fees is the land price issued by the provincial People's Committee according to the laws on land at the time of declaration and payment of land registration fees.

b) For houses:

The Department of Finance shall take the lead and coordinate with the Department of Construction to establish the value for calculating land registration fees for houses based on the actual construction cost of one square meter of floor area for each level and category of house, to develop the Table of Values for Calculating Land Registration Fees for houses to be submitted to the provincial People's Committee for issuance and application locally.

c) For other assets:

The value for calculating land registration fees for other assets is determined based on the actual market transfer prices of similar assets.

Actual market transfer prices are determined based on data collected by local authorities from: sales prices declared by businesses to tax authorities; information from related government agencies (Customs, Industry and Trade Department, Valuation Center under the Department of Finance...); prices of similar assets sold in the same locality or elsewhere; consumer information; asset prices reported in media such as newspapers, magazines, market news...

Principles for establishing tables of values for specific cases:

- For purchased assets: the value for calculating land registration fees cannot be lower than the price stated on the legal sales invoice of the seller.

- For self-produced or manufactured assets: the value for calculating land registration fees cannot be lower than the selling price announced by the producer. For self-produced assets for personal use, the value for calculating land registration fees cannot be lower than the production cost of the product.

- For assets directly purchased from domestic production and assembly enterprises (collectively referred to as production enterprises) sold at the actual transaction price (including VAT and special consumption tax if applicable) stated on the legal sales invoice.

During the process of managing the collection of preliminary registration fees, if the tax authority discovers or receives opinions from organizations or individuals regarding the assessed value for the preliminary registration fee of assets that are not consistent with the prescribed valuation under this Circular or if the asset's value is not specified in the local valuation table, the Tax Department must promptly submit (no later than five working days) recommendations to the People's Committee of the province or the authorized agency issuing the valuation table to amend and supplement the valuation table for preliminary registration fees.

Within fifteen days from the date of issuance of the Valuation Table for Preliminary Registration Fees, the issuing agency must send it to the Ministry of Finance (General Department of Taxation) for monitoring and implementation.

2. Basis for determining the value of assets subject to preliminary registration fees:

The value for calculating land registration fees is set by the People's Committee of the province or centrally governed city.

The basis for determining the value of land subject to preliminary registration fees is the area of land subject to the preliminary registration fee and the land price for the preliminary registration fee.

For land purchased through a legally compliant auction method, the assessed value for the preliminary registration fee is the actual winning bid price recorded on the sales invoice.

1. Principles for issuing the table of values for calculating land registration fees:

The basis for determining the value of buildings subject to preliminary registration fees is the area of the building subject to the preliminary registration fee and the price per square meter of the building for the preliminary registration fee, as stipulated by the Provincial People's Committee at the time of calculating the preliminary registration fee.

Certain special cases for determining the assessed value of buildings for preliminary registration fees are as follows:

- The assessed value for the preliminary registration fee of state-owned buildings sold to tenants according to Decree No. 61/CP dated July 5, 1994 of the Government is the actual selling price recorded on the sales invoice issued by the Provincial People's Committee.

- The assessed value for the preliminary registration fee of resettlement housing is the specific price approved by the competent state authority, provided that the approved price has been balanced and offset between the compensation price for the reclaimed location and the price of the resettlement housing; the assessed value for the preliminary registration fee is the price of the resettlement housing approved by the competent state authority.

- For buildings purchased through a legally compliant auction method, the assessed value for the preliminary registration fee is the actual winning bid price recorded on the sales invoice.

c) For other assets such as aircraft, ships, boats, automobiles, trailers, motorcycles, hunting guns, sports guns, etc.:

The tax authority bases the calculation of preliminary registration fees on the Valuation Table for Preliminary Registration Fees issued by the Provincial People's Committee. If the price recorded on the invoice is higher than the price stipulated by the Provincial People's Committee, the invoice price shall be used.

The value of assets subject to preliminary registration fees is the assessed value for preliminary registration fees as stipulated in the Valuation Table for Preliminary Registration Fees issued by the Provincial People's Committee in accordance with the principle set forth in Clause 1 of this Article.

In the case of assets purchased through installment payments, the preliminary registration fee is calculated based on the total value of the asset paid in one lump sum, excluding the interest on installments.

Article 4. Amend Clause 4 and Clause 5 of Article 6, Chapter II as follows:

1. Add the following provision at the end of paragraph a, Clause 4:

"Central-affiliated cities, provincial cities; districts where the People's Committees of central-affiliated cities and provinces have their headquarters are determined according to the administrative boundaries of the State at the time of declaring the preliminary registration fee, including: Central-affiliated cities include all districts directly subordinate to the city, without distinction between inner-city districts or suburban districts, urban or rural areas; provincial cities and districts where the People's Committee of the province has its headquarters include all wards and communes within the city or district, without distinction between inner-city or inner-town wards and communes or suburban or outlying townships."

2. Replace Clause 5 of Article 6 with the new Clause 5 as follows:

"5. For cars, trailers, or semi-trailers pulled by cars, the rate of collection is 2%.

Specifically:

Cars carrying fewer than ten passengers (including the driver) pay a first-time preliminary registration fee at a rate of 10%. In cases where a higher rate is necessary to align with local conditions, the People's Council of the province or central-affiliated city may decide to increase the rate but not more than 50% above the general rate.

For subsequent preliminary registration fees for cars carrying fewer than ten passengers (including the driver), the rate is 2% and applies uniformly nationwide.

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

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

- The type of vehicle shall be determined as follows:

For imported vehicles, the type of vehicle is determined based on the information recorded in the "Type of Vehicle" section of the Certificate of Quality and Technical Safety and Environmental Protection for Imported Motor Vehicles or the Notification of Exemption from Quality and Technical Safety and Environmental Protection Inspection for Imported Motor Vehicles issued by the Vietnamese Inspection Authority.

For domestically produced or assembled vehicles, the type of vehicle is determined based on the "Type of Vehicle" section recorded in the Certificate of Quality and Technical Safety and Environmental Protection for Domestic Motor Vehicles or the Quality Inspection Report for Motor Vehicles.

If the "Type of Vehicle" (vehicle type) section in the aforementioned documents does not specify a passenger car, the rate of preliminary registration fee applicable to passenger cars shall be applied.

The Public Security Agency responsible for issuing vehicle registration plates checks the type of vehicle; if it finds that the Certificate of Quality and Technical Safety and Environmental Protection, Notification of Exemption from Quality and Technical Safety and Environmental Protection Inspection for Imported Motor Vehicles issued by the Vietnamese Inspection Authority, or the Quality Inspection Report for Motor Vehicles incorrectly records the type of vehicle as either a passenger car or a truck leading to an inappropriate application of the preliminary registration fee rate, it shall promptly notify the Inspection Authority to re-determine the type of vehicle before issuing the registration plate. If the Inspection Authority re-determines the type of vehicle leading to a recalculation of the preliminary registration fee rate, the Public Security Agency shall transfer the file along with verification materials to the tax authority to issue a notice of preliminary registration fee collection in accordance with regulations."

Article 5. Amend Article 7, Chapter III as follows:

"Article 7. Recording of Land Registration Fee Debt

1. Subjects eligible for recording of land registration fee debt:

Recording of land registration fee debt shall be applied to land and houses attached to land owned by households and individuals who are eligible for recording of land use right payment debt according to Clause 8, Article 2 of Decree No. 120/2010/NĐ-CP dated December 30, 2010 of the Government amending and supplementing some articles of Decree No. 198/2004/NĐ-CP dated December 3, 2004 of the Government on land use right payment collection.

2. Payment of land registration fee debt:

When paying off the land registration fee debt, households and individuals must pay the land registration fee calculated based on the price of houses and land set by the People's Committee of provinces and centrally-administered cities at the time of determining the land use right payment obligation.

In cases where households and individuals are eligible for recording of land registration fee debt when transferring or converting houses and land to other organizations or individuals, they must settle all outstanding land registration fees before the transfer or conversion.

3. Procedures for recording of land registration fee debt:

a) Households and individuals eligible for recording of land registration fee debt as stipulated in Clause 1 of this Article shall submit the application dossier (including documents proving eligibility for recording of land registration fee debt as stipulated in Clause 1 of this Article) to the competent state agency as prescribed.

b) The agency issuing certificates of house ownership and land use rights shall examine the dossier; if it confirms that the subjects are eligible for recording of land registration fee debt as stipulated in Clause 1 of this Article, it shall record "Land registration fee debt" on the certificate of house ownership and land use rights before issuing it to the owner or user of the house and land.

In cases where the agency receives dossiers for procedures of transferring or converting house ownership and land use rights from households and individuals still owing land registration fees, the agency issuing certificates of house ownership and land use rights shall be responsible for transferring the dossier along with the "Information Transfer Form for Financial Obligation Fulfillment" to the Tax Authority for calculation and notification to the household or individual to settle all outstanding land registration fees before proceeding with the transfer or conversion procedures."

Article 6. Effectiveness

1. This Circular takes effect from April 1, 2013. All provisions contrary to this Circular are abolished.

2. For vehicles already registered and transferred through multiple owners, the vehicle registration procedures shall be handled according to the provisions of Circular No. 12/2013/TT-BCA dated March 1, 2013 of the Ministry of Public Security amending and supplementing Clause 3, Article 20 of Circular No. 36/2010/TT-BCA dated October 12, 2010 on vehicle registration. The declaration dossier for land registration fee payment is a valid document for vehicle ownership and use registration including documents prescribed by the Ministry of Public Security and other documents prescribed by tax management laws (excluding land registration fee payment receipts).

3. Organizations and individuals with assets subject to land registration fee, relevant agencies shall be responsible for implementing the provisions of Decree No. 23/2013/NĐ-CP and Decree No. 45/2011/NĐ-CP of the Government, guided by Circular No. 124/2011/TT-BTC and this Circular.

For passenger cars with less than 10 seats (including driver) making their first land registration fee payment, if the rate of collection is higher than 10% but not more than 15% in certain provinces and centrally-administered cities, the current rate of land registration fee collection shall apply, and if the rate is higher than 15%, a rate of 15% shall apply until the Provincial People's Councils issue new rates of land registration fee collection according to Decree No. 23/2013/NĐ-CP.

For passenger cars with less than 10 seats (including driver) registering for the second time or more, the land registration fee shall be collected at a rate of 2% uniformly nationwide.

4. During implementation, if there are any difficulties, organizations and individuals are requested to promptly report to the Ministry of Finance for research and supplementary guidance.