What is Registration Fee? Fee rate and how to calculate registration fee

What is registration fee? Regulations on registration fee: registration fee rate, when to pay registration fee, formula & how to calculate registration fee for real estate, cars

I. Regulations on registration fees

1. What is the registration fee?

According to Clause 2, Article 3 of the Law on Fees and Charges 2015, fees are the amount of money that organizations or individuals must pay when provided public services by state agencies.

2. When do I have to pay the registration fee?

Pursuant to Article 4 of Decree 10/2022/ND-CP, except for cases exempted from registration fees as prescribed, organizations and individuals must pay registration fees when: 

• Registering ownership of assets subject to registration fees;
• Registration of property use rights subject to registration fees.

3. Subjects subject to registration fees

Subjects subject to registration fees are specifically regulated in Article 3 of Decree 10/2022/ND-CP, including:

• House, land;
• Boat;
• Motorbike;
• Aircraft;
• Ship;
• Shotgun;
• Cars, trailers, semi-trailers;
• Shell, chassis assembly – engine assembly or body of the asset.

4. Person paying registration fee

According to Article 4 of Decree 10/2022/ND-CP, the person required to pay the registration fee is an organization or individual who needs to carry out procedures to register ownership or right to use assets subject to registration fees as prescribed (except for cases exempted from registration fees). 

II. Registration fee level 

Article 8 of Decree 10/2022/ND-CP specifically stipulates as follows:

➤ House and land registration fee rate: 0.5%.

>> See more: Land use rights transfer tax.

➤ Hunting gun registration fee: 2%.

➤ Registration fee for ships, including barges, canoes, tugboats, push boats, submarines, and submersibles: 1%.

➤ Motorcycle registration fee rate: 2%. 

Example 1: 

Ms. A bought an unused motorbike for 50,000,000 VND. The first registration fee that Ms. A must pay is: 50,000,000 x 2% = 1,000,000 VND.

For motorbikes in the following cases, the registration fee will change accordingly, specifically:

• The fee rate is 1%: For motorbikes paying registration fee from the 2nd time;
• The applicable rate is 5%: 
  • For motorbikes of organizations/individuals in centrally-run cities, provincial cities, and towns where the Provincial People’s Committee is headquartered;
  • If the property owner has declared and paid the 2% motorbike registration fee, then transfer it to an organization or individual in the area.

➤ Registration fee rate for cars, trailers, semi-trailers: 2%. 

Special case:

• Passenger cars with less than 9 seats: The first registration fee is 10%;
• Cargo vehicles with a carrying capacity of no more than 950kg and less than 5 seats, trucks with a carrying capacity of no more than 950kg: The initial registration fee is 60% of the initial registration fee for passenger vehicles with less than 9 seats;
• Battery powered electric cars:
  • First registration fee rate: 0%;
  • Registration fee level for the next 2 years: Equal to 50% of the fee level for gasoline and diesel cars with the same number of seats.
• Cars paying registration fee for the second time or more: 2% fee applies. 

Example 2: 

Mr. B bought a new 4-seat car worth 900,000,000 VND, then:

• Mr. B needs to pay the first registration fee of: 900,000,000 VND x 10% = 90,000,000 VND;
• From the second time, if calculated based on the remaining value of the car of 600,000,000 VND, the registration fee that Mr. B must pay will be: 600,000,000 x 2% = 12,000,000 VND.

>> See more: Accounting for car purchases – for cars over 1.6 billion.

➤ For the shell, frame assembly – engine assembly or body, the corresponding registration fee level for each type of asset is applied.

Note:

The registration fee for controlled assets shall not exceed VND 500,000,000/asset/registration (except for passenger cars with less than 9 seats, airplanes, and yachts). 

III. How to calculate registration fee

Registration fee is calculated based on the registration fee calculation price and the registration fee collection rate (%).

In there:

➤ The price for calculating registration fee for land mentioned in the land price list at the time of registration fee declaration is calculated according to the formula below.

➤ Price for calculating registration fee for houses: Determined according to regulations of construction law at the time of registration fee declaration.

➤ Price for calculating registration fee for assets such as hunting guns, ships, boats, airplanes, shells, frame assemblies, engine assemblies, body of assets, trailers or semi-trailers: Market transfer price of assets for each type of asset.

➤ Price for calculating registration fee for assets such as cars and motorbikes: Price is specified in Decision 618/QD-BTC in 2019.

➤ Price for calculating registration fee for used assets: Remaining value is calculated based on the asset’s usage time.

➤ Price for calculating registration fee for assets purchased in installments: The one-time payment price is determined according to the provisions of Clause 1, Clause 2, Clause 3 and Clause 4, Article 7 of Decree 10/2022/ND-CP.

➤ Price for calculating registration fee for assets with public ownership: Price on the asset sale invoice according to the provisions of law.

IV. Frequently asked questions about registration fees

1. When is the deadline for submitting registration fee application according to regulations?

The deadline for submitting registration fee dossiers for each tax liability is no later than the 30th day from the date the tax liability arises.

2. How much can be fined for late payment of registration fee?

In case of late payment of registration fee compared to the prescribed date, in addition to paying the full registration fee, the daily late payment penalty must be paid equal to 0.03%.

3. In which cases are registration fees exempted?

Pursuant to Article 10 of Decree 10/2022/ND-CP, 31 cases are exempted from registration fees, including:

• Houses and land are headquarters of diplomatic representatives, consulates, and representatives of international organizations;
• Assets of foreign organizations and individuals;
• Land is allocated or leased by the state in the form of paying the entire land rent at once for the entire lease term;
• Land allocated, leased or recognized by the state for use for agricultural, forestry and fishery purposes;
• Agricultural land transfer of usage rights between households and individuals in the same locality;
• ….

>> See details: 31 cases exempted from registration fees.