Circular No. 93/TC-TCT amending and supplementing Circular No. 19-TC/TCT dated March 16, 1995 of the Ministry of Finance guiding the implementation of Decree No. 193/CP on stamp duty.

CIRCULAR

OF THE MINISTRY OF FINANCE

Amending and supplementing Circular No. 19/TC-TCT dated March 16, 1995 of the Ministry of Finance guiding the implementation of Decree No. 193/CP on stamp duty
Implementing Decree No. 193/CP dated December 29, 1994 of the Government on stamp duty, the Ministry of Finance issued Circular No. 19/TC-TCT dated March 16, 1995 to guide its implementation;
After a period of implementation, the Ministry of Finance supplements and amends some points in Circular No. 19/TC-TCT dated March 16, 1995 guiding the implementation of Decree No. 193/CP dated December 29, 1994 of the Government on stamp duty as follows:

1. Supplement and amend paragraph e, point 3, section I regarding the non-collection of stamp duty for specialized assets used for national defense and security as follows:

Land and buildings attached to land used for national defense and security as stipulated in Article 65 of the Land Law has been guided at item 1, paragraph e, point 3 Section I of Circular No. 19/TC-TCT dated March 16, 1995 of the Ministry of Finance guiding the implementation of Decree No. 193/CP dated December 29, 1994 of the Government on stamp duty.

Ships and boats of all kinds specialized for national defense and security such as submarines, minesweepers, fleet base ships, navy patrol boats, and other ships and boats equipped with means exclusively for national defense and security.

Cars, motorcycles, and various types of guns specialized for such purposes as tanks, armored vehicles, tracked vehicles, amphibious vehicles, artillery tractors, fire trucks, three-wheeled motorcycles, two-wheeled motorcycles equipped with means specifically for hunting and capturing criminals, and other specialized assets for national defense and security. However, if these assets are used for production, business, or personal consumption by organizations or individuals, stamp duty must be paid.

All other assets not specialized for national defense and security, such as fishing vessels, cargo and passenger transport vessels of all kinds, tourist cars of all kinds, cargo and passenger transport cars of all kinds, motorcycles of all kinds, hunting rifles, sports guns, etc., when registering with state management agencies, must pay stamp duty according to Article 1 and Article 2 of Decree No. 193/CP dated December 29, 1994 of the Government on stamp duty, regardless of whether the organization or individual specializes in national defense and security tasks or combines them with economic activities or specializes solely in economic activities.

2. Supplement paragraph h, point 3, section I regarding assets divided or merged into organizations as follows:

Assets that have been registered for ownership and use and then contributed to joint ventures, when the joint venture registers ownership and use, must pay stamp duty; if the joint venture subsequently dissolves and there is a division of contributed assets, the person receiving the asset when re-registering ownership does not need to pay stamp duty on the value of the asset according to their percentage share in the total capital of the joint venture. In cases where the joint venture dissolves but does not divide the assets, instead selling or transferring them to another organization or individual, the recipient of the asset must pay stamp duty on the full value of the asset before registration.

Example: Mr. Nguyen Van A contributed his house and land to form a Limited Liability Company B. When Company B registers ownership of the house and land under its name, it must pay stamp duty based on the total value of the house and land at the time of registration. If Company B dissolves and Mr. A's contribution constitutes 30% of the company's total capital, he receives a car as part of the asset division. When Mr. A re-registers ownership of the car, stamp duty is handled as follows: 30% of the car's value (corresponding to Mr. A's capital ratio) does not require payment of stamp duty. The remaining 70% of the car's value at the time of registration must pay stamp duty. However, if Company B does not divide the assets but sells them to Mr. C who did not contribute capital, Mr. C must pay stamp duty on the total value of the asset before registration.

3. Amend item 2 of paragraph a, point 1, section II of Circular No. 19-TC/TCT dated March 16, 1995 regarding the valuation of land for stamp duty as "The price per square meter (VND/m2) of land is determined by the People's Committee of the province or centrally administered city according to the framework of land prices issued by the Government" as amended as follows: The price per square meter (VND/m2) for stamp duty is determined by the People's Committee of the province or centrally administered city based on the actual transfer price of land in the locality, but it cannot be lower than the minimum price of the corresponding type of land according to the framework set by the Government.

In the case of acquiring land use rights together with purchasing a state-owned house sold to the current tenant, the price for calculating stamp duty on land is the price specified by the People's Committee of the province or centrally administered city according to Decree No. 61/CP dated July 5, 1994 of the Government.

4. Supplement paragraph b, point 1, section II as follows: The price for calculating stamp duty on state-owned houses sold to tenants according to Decree No. 61/CP dated July 5, 1994 of the Government is the actual sale price recorded on the invoice issued by the decision of the People's Committee of the province or centrally administered city.

5. Add after paragraph c, point 1, section II: "When calculating and collecting stamp duty, if the value of the asset recorded on the invoice of the stamp duty payer is lower than the standard price set by the People's Committee of the province or centrally administered city, the price for calculating stamp duty is the minimum standard price set by the People's Committee of the province or centrally administered city; if the value of the asset recorded on the invoice or declaration is higher than the minimum standard price, the price for calculating stamp duty is the actual value recorded on the invoice or declaration submitted by the stamp duty payer, applicable to all assets subject to stamp duty as guided in point I, section II of Circular No. 19-TC-TCT dated March 16, 1995 of the Ministry of Finance guiding the implementation of Decree No. 193/CP dated December 29, 1994 of the Government on stamp duty."

4. Supplement paragraph b, point 1, section II as follows: The value for stamp duty calculation on houses owned by the State sold to tenants under Government Decree No. 61/CP dated July 5, 1994, is the actual selling price recorded on the sales invoice according to the decision of the People's Committee of the province or centrally governed city.

5. The provision following paragraph c, point 1, section II shall be as follows: "When calculating and collecting stamp duty, if the asset value recorded on the invoice submitted by the stamp duty payer is lower than the standard price set by the People's Committee of the province or centrally governed city, then the stamp duty calculation value is the minimum standard price set by the People's Committee of the province or centrally governed city; if the asset value recorded on the invoice or declaration is higher than the minimum standard price, then the stamp duty calculation value is the actual value recorded on the invoice or declaration submitted by the stamp duty payer, uniformly applied to all assets subject to stamp duty according to the guidance at point I, section II of Circular No. 19-TC-TCT dated March 16, 1995, issued by the Ministry of Finance guiding the implementation of Government Decree No. 193/CP dated December 29, 1994, regarding stamp duty."

Other contents not covered by this guidance shall continue to be implemented in accordance with Circular No. 19-TC-TCT dated March 16, 1995, and Circular No. 42-TC-TCT dated June 1, 1995, issued by the Ministry of Finance guiding the implementation of Decree No. 193/CP dated December 29, 1994, of the Government on stamp duty.

This Circular takes effect from the date of signature. Previous regulations contrary to this Circular are abolished.

In the course of implementation, if there are any difficulties, agencies are requested to promptly report them to the Ministry of Finance for further study and supplementary guidance.