23/06/2024
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Many are familiar with registration tax, yet there is an unclear understanding of its exact definition.

Firstly, in order to comprehend the concept of registration tax, it is essential to gain an understanding of the term “registration.”

Registration, a term originating from Sino-Vietnamese, is frequently employed in the fields of law and commerce. It refers to the act of officially recording information in government records. Over time, the notion of registration expanded to encompass the process of recording ownership rights to specific assets, in accordance with legal provisions.

Before registering ownership of a house, land or vehicle, you must pay a fee called registration tax to the authorities.
Before registering ownership of a house, land or vehicle, you must pay a fee called registration tax to the authorities.

So what is registration tax?

Registration tax is a mandatory fee that property owners are required to declare and pay to tax authorities prior to utilizing their property. It can be simplified as a fee called stamp duty that is paid to the appropriate authority when registering property ownership. For instance, when purchasing a vehicle, you need to pay registration tax in order to officially register the car under your ownership.

The government’s upcoming policy to decrease registration tax by up to 50% for domestically assembled cars has sparked significant interest.

Domestically assembled cars are preparing to receive a 50% reduction in registration tax
Domestically assembled cars are preparing to receive a 50% reduction in registration tax

What is the formula for calculating car registration tax?

The calculation of car registration fees is determined by applying the formula specified in Article 5 of Decree 140/2016/ND-CP.

The amount of the registration fee that needs to be paid is determined by multiplying the registration fee calculation price by the fee collection rate, which is expressed as a percentage.

The State has strict regulations that determine the specific registration fee calculation price for each type of vehicle. To find details about the registration fees for different vehicle types, please visit the websites listed below:

  • Decision 618/QD-BTC
  • Decision 1112/QD-BTC
  • Decision 2064/QD-BTC
  • Decision 452/QD-BTC
How to calculate registration tax for cars with less than 9 seats has received the most attention
How to calculate registration tax for cars with less than 9 seats has received the most attention

Meanwhile, the registration fee percentage will vary depending on the type of car. For cars with less than 9 seats, which is the most commonly found type of car, the first registration tax is 12% in Hanoi, 15% in Ho Chi Minh City, and 10% in other provinces.

The registration tax rates for different car models vary. For instance, cars, trailers, and semi-trailers towed by cars, as well as similar vehicles, have a tax rate of 2%.