Circular No. 34/2013/TT-BTC

THE MINISTRY OF FINANCE

Circular No. 34/2013/TT-BTC dated March 28, 2013 of the Ministry of Finance amending, supplementing some articles of the Circular No. 124/2011/TT-BTC dated August 31, 2011 of the Ministry of Finance guiding registration fee

Pursuant to the Ordinance on Charges and Fees;

Pursuant to the 2003 Land Law and government decrees detailing the 2003 Land Law;

Pursuant to the Law on Tax Administration and government decrees detailing the Law on Tax Administration;

Pursuant to the Government’s Decree No. 45/2011/ND-CP of June 17,2011, on registration fee;

Pursuant to the Government’s Decree No. 23/2013/ND-CP dated March 25, 2013 of amending, supplementing some articles of the Decree No. 45/2011/ND-CP dated June 17, 2011 of the Government on registration fee

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

The Ministry of Finance issues the Circular amending; supplementing some articles of the Circular No. 124/2011/TT-BTC dated August 31, 2011 of the Ministry of Finance guiding registration fee as follows:

Article 1. To amend Article 3, Chapter 1 as follows:

1. To amend clause 10, Article 3 as follows:

“10. Houses and land inherited or donated between spouses; between natural parent and natural child; adoptive parent and adopted child; parent-in-law and daughter-in-law or son-in-law; paternal grandparent and grandchild; maternal grandparent and grandchild or between siblings, for which land use right certificates or certificates of ownership of houses and other assets attached to land are granted by competent state agencies.

For these cases, when making registration fee registration, property recipients shall produce to tax agencies lawful papers proving their relationships with property givers or a written certification of the relationship between property givers and recipients, made by the People’s Committee of the commune, ward or township in which the property givers or recipients permanently reside.

2. To amend clause 18. Article 13 as follows:

“18. Properties of organizations or individuals for which registration fee has been paid and which are subject to re-registration of ownership or use rights as a result of division, splitting, equalization, consolidation, merger or renaming of organizations under decisions of competent state agencies without changing property owners or users.

In case the renaming is made simultaneously with the change of property owners, property owners shall pay registration fee.”

3. To amend clause 25, Article 13 as follows:

“25. Workshops of production and business establishments, including warehouses, dining halls and garages of production and business establishments.

Article 2. To amend Article 4, Chapter II as follows:

“Article 4. Bases for registration fee calculation and registration fee rates

1. Bases for registration fee calculation include registration fee calculation price and registration fee rate (%).

2. Registration fee level:

Defined in accordance with the percentage basing on asset value having payable registration fee amount prescribed in details for each asset liable to registration fee at Article 7 of the Decree No. 45/2011/ND-CP dated June 17, 2011 of the Government on registration fee and amends, supplements at clause 4, Article 1 of the Decree No. 23/2013/ND-CP dated March 25, 2013 of the Government.

3. The payable registration fee amount is determined as follows:

The maximum registration fee level for properties , excluding passenger cars of under 10 seats (including the driver’s), aircraft and yachts, is VND 500 million/property/time of registration.

Article 3. To amend Article 5, Chapter II as follows:

“Article 5. Registration fee calculation prices

Registration fee calculation prices are prices issued by provincial-level

People’s Committees to serve as a basis for registration fee calculation. The Department of Finance shall corporate with relevant departments and sectors in building and submitting to provincial-level People’s Committees for building table of registration fee calculation prices as follows:

1. Principles of issuance of registration fee calculation prices:

a) For land: Registration fee calculation prices are the prices prescribed by provincial-level People’s Committees under the land law at the time of declaration to pay registration fee.

b) For houses: Provincial-level Finance Departments shall assume the prime responsibility for, and coordinate with provincial-level Construction Departments in, elaborating registration fee calculation prices on the basis of the actual “new” construction price of one (1) m2 of floor area of houses of each grade and class to build table of registration fee calculation prices to submit to provincial-level People’s Committees for issuing and applying in localities.

c) For other properties:

Asset values are defined basing on the suitability with the transfer price for actual assets in domestic market.

Actual price of asset transfer in market is defined basing on database that functional agencies collect from the prices of business and production establishments declared to tax agencies; price information from relevant state managing agencies (customs agencies, Departments of Industry and Trade, Center of Price Estimation directly under the Ministry of Finance..); price of the same asset at the locality or other localities; information from customer; price information on public mass media such as newspaper, magazine, market news and so on.

Principles for building table in some specific cases:

+ For sold/purchased properties: Registration fee calculation prices must not be lower than the prices stated in the sellers’ lawful sale invoices.

+ For produced/manufactured properties: Registration fee calculation prices must not be lower than production costs of producers. In the case that assets are self-produced for consumption, registration fee calculation prices must not be lower than production costs of producers.

+ Registration fee calculation prices for direct assets of the production establishment allowed to produce, install in country (called production establishment in general) is the real payment price (including VAT tax and special consumption tax – if any) written in legal invoices.

Organizations, individual purchasing goods from agencies that directly sign the contracts with production establishments and sell at the price of production establishment are considered to have direct purchase from production establishment.

+ For import goods at the time before having registration fee in the table of prices issued by provincial-level People’s Committees, the Department of Finance shall corporate with relevant industries and sectors to have reference on prices of goods in the same type in domestic market and import prices in according with import tax calculation price defined by customs agencies and other relevant fees to submit provincial-level People’s Committee for promote issuance.

Provincial-level People’s Committees shall direct functional agencies to build registration fee calculation price for each asset so that provincial-level People’s Committee to have base for defining and issuing table of registration fee calculation price, methods for defining registration fee calculation price for assets including aircraft, ships, boats, automobiles, trailers, motorcycles, hunting rifles and sports guns applicable to the locality in each period.

In the course of registration fee management, the case that tax agencies recognize or receive opinions from organizations and individual on

registration fee calculation which have not yet been conformed to regulations prescribed in this Circular or that assets have not been included in the local tables of registration fee calculation prices, Department of Customs must report directly to provincial-level People’s Committees or authorized agencies to supplement and modify the price tables (within 15 working days) for amending, supplementing table of registration fee calculation price.

Within 15 days after issuing tables of registration fee calculation prices, issuers shall send them to the Ministry of Finance (the General Department of Taxation) for supervision.

2. Bases for determining registration fee calculation prices:

a)  For land:

Bases for determining registration fee calculation prices include the whole land area subject to registration fee and land prices for registration fee calculation.

For the land purchased in bidding in accordance with legal regulations on bidding, in bidding, registration fee is calculated in accordance with the winning price written in the invoice.

b) For houses:

Bases for determining registration fee calculation prices include the house area subject to registration fee and house prices for calculation of registration fee.

Some special cases for determining registration fee calculation prices:

- The registration fee calculation price for state-owned houses selling to leaser in accordance with the Decree No. 61/CP dated July 05, 1994 of the Government is the real price written in the invoice for selling houses according to decisions of provincial-level People’s Committees.

- The registration fee calculation for resettlement house is approved by competent state agencies and the price must be balanced between the compensation price and price of resettlement house, the registration fee calculation price shall be the price approved by competent agencies.

- For the houses purchased in bidding in accordance with legal regulations on bidding, in bidding, registration fee is calculated in accordance with the winning price written in the invoice.

c) For other properties such as aircraft, ships, boats, automobiles, trailers, motorcycles, hunting rifles and sports guns:

Tax agencies shall base on the table of the registration fee calculation prices are prescribed by provincial-level People’s Committees. In the case that the price in invoice is higher than the price prescribed by provincial-level People’s Committee, the price in invoice shall be applied.

Asset value of registration fee is the registration fee calculation price is prescribed in the table of registration fee calculation price issued by provincial-level People’s Committee in accordance with clause 1 of this Article.

In the case of purchasing goods in the form of installment payments, registration fee shall comply with total value of payment at one time for that asset (excluding interest rate of installment payments).

Article 4. To amend clause 4 and 5, Article 6, Chapter II as follows:

1. To supplement at point a, clause 4 as follows:

“Centrally run cities, provincial cities and towns in which provincial-level People’s Committees are headquartered shall be identified by administrative boundaries at the time of registration fee declaration. A centrally run city covers all urban districts and rural districts of that city; a provincial city or town in which the provincial-level People’s Committee is headquartered covers all wards and communes of that city or town”.

2. To replace clause 5, Article 6 by new clause 5 as follows:

“5. For automobiles, trailers or semi-trailers drawn by automobiles: 2%.

Particularly,

For passenger cars of under 10 seats (including the driver’s), the initial registration fee shall be paid at the rate of 10%. In the case of applying higher level of registration fee to suit local realities, provincial-level People’s Council shall decide to increase but not exceed 50% compared to general provision.

For passenger cars of under 10 seats (including the driver’s), the second registration fee shall be paid at the rate of 2% and this fee is applied in all country.

Tax agencies shall define the level of registration fee for cars basing on:

- Number of seats is defined in accordance with producer’s design;

- Type of cars is defined as follows:

In the case of imported cars, basing on the Register Agencies’ confirmation at the section “Type of vehicle” of the Certificate of technical safety quality and environment protection or the Notice for free investigation on technical safety quality and environment protection for imported cars issued by Vietnam Register of Shipping;

In the case that cars are produced and installed in country, basing on the sector “Type  of vehicle” of the Certificate of technical safety quality and environment protection or the factory check for cars;

In the case that no paper defines car in the sector “Type of vehicle, registration fee for passenger cars shall be applied.  

When the police agencies issuing register board realize that of the Certificate of technical safety quality and environment protection or the Notice for free investigation on technical safety quality and environment protection, the factory check do not inform the right passenger cars or trucks, police agencies shall inform promptly to the register agency before issuing board. In the case that the register agency re-defines type of vehicle and accordingly must re-calculate level of registration fee, the police agency shall transfer dossier attached with confirmation documents to tax agencies to issue to notice of registration fee in accordance with regulations.”

Article 5. To amend Article 7, Chapter III as follows:

“Article 7. Owing of registration fee

1. Subjects allowed owing registration fee:

Owing of registration fee for houses and residential land of households or individuals entitled to owe land use levy under Clause 8, Article 2 of the Government’s Decree No. 120/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of the Government’s Decree No. 198/2004/ND-CP of December 31, 2004, on collection of land use levy.

2. Payment of owed registration fee:

When paying owned registration fee, households or individuals must pay registration fee amount is the land price prescribed by the provincial-level People’s Committee at the time of determining the payable land use levy amount

In case households or individuals entitled to owe registration fee transfer or swap such houses or land plots to others, they shall pay the owed registration fee amount before carrying out such transfer or swap.

3. Procedures for owing registration fee:

a/ Households or individuals entitled to owe registration fee for houses or residential land specified in Clause 1 of this Article shall submit dossiers (comprising documents evidencing their eligibility to owe registration fee under Clause 1 of this Article) to competent state agencies according to law.

b/ Agencies competent to grant house ownership or residential land use right certificates shall inspect the dossiers and, if ascertaining that the applicants are entitled to owe registration fee for houses or residential land under Clause 1 of this Article, write in the house ownership or residential land use rights certificates the phrase “Registration fee owed” before handing such certificates to the house owners or land users.

When receiving dossiers of application for carrying out procedures for the transfer or swap of house ownership or land use rights submitted by households or individuals that still owe registration fee, agencies competent to grant house ownership or residential land use right certificates shall transfer such dossiers together with a “sheet on cadastral information for performance of financial obligations” to tax agencies for the latter to calculate and notify the owed registration fee amount to the households or individuals for full payment before carrying out transfer or swap procedures.

Article 6. Effect

1. This Circular takes effect on April 01, 2013 and annuls all regulations contradict with this Circular.

2. The case that the car that has been registered and transferred by many people shall have register board in accordance with regulations in the Circular No. 12/2013/TT-BCA dated March 01, 2012 of the Ministry of Public Security amending, supplementing clause 3, Article 20 of the Circular No. 36/2010/TT-BCA dated October 12, 2010 of the Ministry of Public Security on vehicle registration, dossier for registration fee declaration is the legal dossier to register property rights and use rights, including papers in accordance with regulations of the Ministry of Public Security and other papers in accordance with legal regulation on tax administration (except for receipts of registration fee).

3. Organizations and individuals having properties subject to registration fee and related agencies shall implement the Government’s Decree No. 23/2013/ND-CP, the Government’s Decree No. 45/2011/ND-CP and guidance at the Circular No. 124/2011/TT-BTC and this Circular.

For passenger cars of under 10 seats (including the driver’s), the initial registration fee paid at the rate between 10% and 15% shall apply current registration fee level in accordance with current regulation, in the case that the registration fee is higher than 15%, this level shall be applied to the time that provincial-level and municipal People’s Council issues new registration fee in accordance with regulations in the Decree No. 23/2013/ND-CP.

For passenger cars of under 10 seats (including the driver’s), the second registration fee shall be paid at the rate of 2% and this fee is applied in all country.

4. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for study and additional guidance.-

For the Minister of Finance

Deputy Minister

DO HOANG ANH TUAN

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