Circular No. 8011/TC/TCT dated July 22, 2002 of the Ministry of Finance proposes an additional fee of VND 20 million per vehicle for pick-up trucks or cargo vehicles that have been registered as such but later converted into passenger vehicles to curb illegal imports and unauthorized conversion. This proposed fee will be applicable within a five-year period from the date of registration.
适用范围
Owners of pick-up trucks or cargo vehicles wishing to convert them into passenger vehicles
要点
- Owners of pick-up trucks or cargo vehicles → must pay an additional fee when converting to passenger vehicles → amounting to VND 20 million per vehicle (This provision)
- Conversion within five years from the date of registration → not permitted without payment of the additional fee → except in cases where the additional fee is paid (This provision)
- Local tax authorities → collect the additional fee once when the conversion applicant has completed payment (This provision)
- The person registering for conversion → who is not the importer → shall pay an additional fee set at VND 20 million per vehicle, equivalent to approximately USD 1,300 (the declared import price ranges from USD 6,500 to USD 7,000) (This provision)
- Public security authorities → issue a registration certificate for passenger vehicles after the conversion applicant has completed payment of the prescribed additional fee (This provision)
🌐 本文件的社会影响
- Owners of pick-up trucks or cargo vehicles will incur additional costs when converting their vehicles into passenger vehicles to curb illegal imports and unauthorized conversions.
- Local tax authorities will have an additional source of revenue from this additional fee.
- Reduce fraudulent declarations of vehicle value upon importation.
❓ 常见问题
What is the amount of the additional fee?
VND 20 million per vehicle
What is the deadline for paying the additional fee?
Within five years from the date of registration.
Which authority collects this additional fee?
Local tax authorities
Is the person paying the additional fee the importer?
No, it is the person registering for conversion.
When does the public security authority issue a registration certificate?
After the conversion applicant has completed payment of the prescribed additional fee.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 8011 TC/TCT DATED JULY 22, 2002
REGARDING THE ADDITIONAL FEE FOR MOTOR VEHICLES REGISTERED AS PICKUP TRUCKS AND SUBSEQUENTLY MODIFIED INTO PASSENGER CARS
CONVERSION OF PICKUP TRUCKS OR TRUCKS INTO PASSENGER CARS
RESPECTFULLY SUBMITTED TO: THE PRIME MINISTER
Pursuant to the opinion of the Prime Minister as stated in Document No. 2752/VPCP-KTTH dated May 23, 2002 from the Office of the Government, instructing the Ministry of Finance to submit to the Prime Minister the additional fee for motor vehicles that were registered as pickup trucks and subsequently modified into passenger cars, the Ministry of Finance hereby provides its opinion.
According to Decision No. 46/2001/QĐ-TTg dated April 4, 2001 by the Prime Minister on managing exports and imports during the period from 2001-2005, vehicles that can both carry passengers and cargo with a combined passenger and cargo compartment (closed-body trucks) are prohibited from importation or imported under permits issued by the Ministry of Trade (effectively prohibiting their import). Therefore, when importing such vehicles, enterprises declare them as pickup trucks to facilitate importation without having to pay special consumption tax. Since the import contract specifies that they are pickup trucks, enterprises take advantage of declaring a lower price for pickup trucks to evade taxes (contracts typically range from approximately 3,500 USD to 4,000 USD per vehicle). Meanwhile, the General Department of Customs' pricing table for similar imported vehicles is around 6,500 USD to 7,000 USD. Therefore, it is proposed that any back taxes should be calculated based on the minimum price set by the General Department of Customs, ensuring alignment with actual import prices (CIF). For vehicles already registered as pickup trucks or cargo trucks and subsequently modified into passenger-carrying vehicles (which are prohibited from importation), according to the opinion of the Ministry of Finance, they should not be allowed to convert into passenger-carrying vehicles within five years from the date of registration. If conversion occurs within this period, an additional fee equivalent to the price differential currently applied for certain restricted imports transitioning to unrestricted imports (commonly ranging from 10% to 20%, with specific items like refrigerator linings and hot water bottles at 30% and 40%) should be imposed. The Ministry of Finance proposes a specific additional fee rate of 20% based on the import tax value as per the aforementioned recommendation, levied against those applying for conversion registration. Since this additional fee is not collected from the importer but rather from the person converting the vehicle, it cannot rely solely on import documentation to collect the fee. Therefore, to ensure practical implementation of the additional fee collection, a fixed amount of 20 million Vietnamese dong per vehicle (regardless of whether the vehicle is new or used) should be set, equivalent to approximately 1,300 USD (based on declared import prices ranging from 6,500 USD to 7,000 USD per vehicle * 20%). At this rate, the cost would be around 22,000 USD per vehicle, comparable to similar passenger-carrying vehicles. This measure aims to curb fraudulent practices in importing and converting vehicle functions. The collection of this additional fee should be assigned to local tax authorities since it is an internal revenue matter when applying for conversion registration into a passenger-carrying vehicle. This additional fee shall only be levied once upon application for modification from cargo truck to passenger car, with the public security authority issuing the vehicle registration certificate for passenger cars only after the applicant has fully paid the prescribed additional fee.
For vehicles registered as pickup trucks or trucks, when converted into passenger-carrying vehicles (which are prohibited from importation) according to the opinion of the Ministry of Finance, such conversion shall not be permitted. The Ministry of Finance respectfully requests the Prime Minister's consideration and decision.
The Ministry of Finance requests the Prime Minister's consideration and decision.
关系图
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