Decree No. 70/2020/NĐ-CP stipulates the rate of stamp duty for domestically produced and assembled automobiles from the date this Decree takes effect until the end of 2020. The rate is reduced to 50% compared to the current regulations.
Scope of application
Purchasers or owners of domestically produced and assembled automobiles; tax authorities and related organizations
Key points
- Purchasers of domestically produced and assembled automobiles from the date this Decree takes effect until the end of 2020 must pay stamp duty at 50% of the rate prescribed in Decree No. 20/2019/NĐ-CP (Article 1.1).
- From January 1, 2021 onwards, the rate of stamp duty will continue to be implemented according to the provisions of Decree No. 20/2019/NĐ-CP and related documents (Article 1.2).
- This Decree takes effect from the date of signature until the end of 2020.
- Tax authorities and related organizations must implement the collection of stamp duty according to the provisions of this Decree (Article 2).
- This Decree does not specify the specific reduction in stamp duty for each type of automobile.
🌐 Social impact of this document
- Reduce the financial burden for purchasers of domestically produced and assembled automobiles.
- Increase the competitiveness of the domestic automobile industry.
- Domestic automobile manufacturing and assembly enterprises may benefit from the reduction in stamp duty.
❓ Frequently asked questions
How do purchasers of domestic automobiles pay stamp duty?
From the date this Decree takes effect until the end of 2020, the rate of stamp duty is 50% of the rate prescribed in Decree No. 20/2019/NĐ-CP.
What types of automobiles does this Decree apply to?
Applies to all types of domestically produced and assembled automobiles.
How will the rate of stamp duty change from January 1, 2021?
The rate will continue to be implemented according to the provisions of Decree No. 20/2019/NĐ-CP.
Until when is this Decree effective?
Effective from the date of signature until the end of 2020.
Full text
DECREE
Prescribing the rate of stamp duty for domestically produced automobiles until December 31, 2020
assembly within the country until December 31, 2020
||| Pursuant to the Law on Organization of the Government dated June 19, 2015;
Pursuant to the Law on Fees and Stamp Duties dated November 25, 2015;
At the proposal of the Minister of Finance;
The Government issues this Decree prescribing the rate of stamp duty for domestically produced automobiles until December 31, 2020.
Article 1. Rate of stamp duty
The initial rate of stamp duty for automobiles, trailers, semi-trailers pulled by automobiles, and similar vehicles produced and assembled domestically shall be implemented as follows:
1. From the date this Decree takes effect until December 31, 2020: The rate of stamp duty shall be 50% of the rate prescribed in Decree No. 20/2019/NĐ-CP dated February 21, 2019 of the Government amending and supplementing certain provisions of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government on stamp duty and current resolutions of People's Councils or decisions of provincial People's Committees under central cities regarding the rate of stamp duty at local levels.
2. From January 1, 2021 onwards: The rate of stamp duty shall continue to be implemented according to the provisions of Decree No. 20/2019/NĐ-CP dated February 21, 2019 of the Government amending and supplementing certain provisions of Decree No. 140/2016/NĐ-CP dated October 10, 2016 of the Government on stamp duty and current resolutions of People's Councils or decisions of provincial People's Committees under central cities regarding the rate of stamp duty at local levels.
Article 2. Effective Date
1. This Decree takes effect from the date of signature until December 31, 2020.
2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals are responsible for implementing this Decree./.
PRIME MINISTER
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