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 NUMBER 93-TC/TCT ON DECEMBER 21, 1995
 AMENDING AND SUPPLEMENTING THE CIRCULAR NUMBER 19-TC/TCT ON MARCH 16, 1995
OF THE MINISTRY OF FINANCE GUIDING THE IMPLEMENTATION OF THE DECREE
NUMBER 193/CP ON STAMP DUTIES

Implementing Decree No. 193/CP dated December 29, 1994 of the Government on stamp duties, the Ministry of Finance issued Circular No. 19-TC/TCT dated March 16, 1995 to guide 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 duties as follows:

1. Supplement and amend paragraph e, point 3, section I regarding the non-collection of stamp duty for assets specifically 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 the first bullet point of 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 duties.

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

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

All assets not specifically used 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., each time 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 duties 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 registered ownership and usage rights and then contributed to joint ventures, when the joint venture registers ownership and usage rights, 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 the case where the joint venture dissolves but does not divide the assets, but sells or transfers the assets 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 Limited Liability Company B registers ownership of the house and land under its name, it must pay stamp duty on the total value of the house and land at the time of registration. If Limited Liability Company B dissolves and Mr. A's contribution accounts for 30% of the total capital of the company, he receives a car as part of the asset division. When Mr. A re-registers ownership of the car, the 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. 70% of the car's value at the time of registration must pay stamp duty. However, if Limited Liability Company B does not divide the assets but sells them to Mr. C who did not participate in the capital contribution, Mr. C must pay stamp duty on the total value of the asset at the time of registration.

3. Amend the second bullet point of paragraph a, point 1, section II of Circular No. 19-TC/TCT dated March 16, 1995 regarding the value of land for stamp duty as "The price of land per square meter (VND/m2) is determined by the People's Committee of the province or centrally governed city according to the framework of land prices issued by the Government" as follows: The price of land per square meter (VND/m2) for stamp duty is determined by the People's Committee of the province or centrally governed 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 price issued by the Government.

For cases where the right to use land is received together with the purchase of a house owned by the State sold to the current tenant, the price for calculating stamp duty on land is set by the People's Committee of the province or centrally governed 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 houses owned by the State 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 as decided by the People's Committee of the province or centrally governed 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 governed city, the price for calculating stamp duty is the minimum standard price set by the People's Committee of the province or centrally governed city; if the value of the asset recorded on the invoice or declaration is higher than the minimum standard price, the stamp duty calculation price 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 duties".

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, please promptly report them to the Ministry of Finance for further study and supplementary guidance.