Pickup Truck Tax Vietnam 2018: Fees & Guide

Welcome to Xe Tải Mỹ Đình, your leading source for trucks and related information. In this article, we will provide the most detailed and comprehensive information about pickup truck registration tax in 2018 in Vietnam. Understanding the regulations on registration tax is crucial when you decide to own a pickup truck, especially a 2018 model. Let’s explore this together to help you complete the procedures quickly and accurately.

Pickup Truck Registration Tax Regulations 2018 Under Circular 301/2016/TT-BTC

According to Circular 301/2016/TT-BTC guiding registration fees, pickup trucks, also known as cargo pickup vehicles, are classified as “other automobiles not passenger cars”. This means that the registration tax rate applied to pickup trucks for the first registration is 2% of the vehicle’s value.

To clarify further, Circular 301/2016/TT-BTC stipulates the first-time registration fee rates for:

  • Passenger cars (9 seats or fewer): The rate is 10%, and may be adjusted upwards but not exceeding 50% depending on the decision of the People’s Council of provinces and centrally-run cities.
  • Other automobiles not passenger cars (including pickup trucks, VAN trucks): The rate is 2%.

Thus, for 2018 pickup trucks, whether imported or domestically assembled, the first-time registration tax rate is still applied at 2%. The vehicle type (passenger car or other automobile) will be determined based on the Certificate of Quality, Technical Safety and Environmental Protection issued by the vehicle registration authority.

How to Calculate Registration Tax for Used 2018 Pickup Trucks

If you purchase a used (second-hand) 2018 pickup truck, the calculation of registration tax will differ from that of a new car. The registration tax for used cars is calculated based on 3 main factors:

  1. 100% New Vehicle Value: As regulated by the Ministry of Finance at the time of tax calculation.
  2. Remaining Quality Ratio of the Vehicle: Calculated based on years of use, also known as the depreciation rate.
  3. 2% Fee Rate: Applied uniformly nationwide for used vehicles.

The remaining quality ratio of used vehicles is specifically regulated in Circular 301/2016/TT-BTC, based on the period of use from the year of manufacture/import to the year of registration tax declaration.

Table of remaining quality ratio of used cars based on years of use from the year of manufacture

For example, if you buy a pickup truck manufactured in 2018 and register the ownership transfer in 2023 (i.e., the vehicle has been used for 5 years), the remaining quality ratio of the vehicle will be 70%. The taxable value will be 70% of the new car value at the current time, then multiplied by the 2% fee rate.

Determining Vehicle Type and Accurate Registration Tax Rate

To accurately determine the vehicle type and registration tax rate, the tax authority will rely on the vehicle type stated on the Certificate of Quality, Technical Safety and Environmental Protection issued by the Vietnam Register.

For imported vehicles: Based on the “Vehicle Type” section in the Certificate of Quality or Notice of Exemption from Quality Inspection issued by the vehicle registration authority.

For domestically manufactured and assembled vehicles: Based on the “Vehicle Type” section in the Certificate of Quality or Ex-factory Quality Inspection Certificate.

In cases where the above documents do not clearly specify whether it is a truck or a passenger car, the tax authority will apply the registration fee rate for passenger cars (i.e., a rate higher than 2% may be applied). However, the traffic police agency issuing vehicle registration plates is also responsible for checking the vehicle type and promptly notifying the vehicle registration authority if errors are detected in the documents to re-determine the vehicle type before issuing license plates, ensuring the correct registration tax rate is applied.

Registration Tax for Diplomatic and Foreign License Plate Vehicles

For vehicles with diplomatic or foreign license plates, when transferred to Vietnamese organizations or individuals not eligible for preferential treatment, the registration tax will be calculated as for first-time registration. The taxable value in this case is the remaining value of the asset at the time of registration tax declaration.

For vehicles with foreign license plates where the vehicle owner is a foreigner who has paid the first registration tax in Vietnam, when transferred to another organization or individual in Vietnam, the registration tax will be calculated at a rate of 2% (applied to vehicles registered from the 2nd time onwards).

Formula for Calculating 2018 Pickup Truck Registration Tax

For your easy understanding, the formula for calculating the 2018 pickup truck registration tax is as follows:

Registration Fee Amount Payable (VND) = Taxable Value of Asset (VND) x Registration Fee Rate (%)

Important Note: The maximum registration fee rate for assets (except passenger cars with 9 seats or fewer) is VND 500 million/asset/registration.

Hopefully, this article from Xe Tải Mỹ Đình has provided you with all the necessary information about the 2018 pickup truck registration tax. If you have any further questions, please do not hesitate to contact us for more detailed advice. We wish you soon own your desired pickup truck!

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