The 2019 truck registration tax saw significant changes compared to previous years. According to Decree 20/2019/ND-CP, effective from April 10, 2019, the first-time registration tax rate for certain types of trucks was considerably adjusted. This article provides detailed information about the 2019 truck registration tax, helping you understand the regulations and better prepare for vehicle transactions.
Key Changes in 2019 Truck Registration Tax
Decree 20/2019 clearly stipulates the first-time registration tax rate for vehicles that are both passenger and cargo carriers (pickup trucks) with a permitted payload of less than 1,500 kg and 5 seats or fewer, and VAN trucks with a permitted payload of less than 1,500 kg. The tax rate is equal to 60% of the first-time registration fee rate for passenger cars with 9 seats or fewer.
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Various pickup trucks are shown, illustrating the types of vehicles affected by the 2019 registration tax changes.
Specifically, the first-time registration fee rate for passenger cars with 9 seats or fewer is 10%. However, the People’s Council of provinces and centrally-run cities can decide to adjust this rate upwards, but not exceeding 50% of this level (i.e., not exceeding 15%), depending on the actual conditions in each locality.
2019 Registration Tax Rates for Pickup Trucks and Vans
Applying the above regulations, the first-time registration fee applicable to pickup trucks and VANs will be 6%. In some localities, the rate may be higher, but it must not exceed 9%.
Previously, according to Decree 140/2016/ND-CP, the registration fee rate for cars, trailers or semi-trailers pulled by cars, and similar vehicles (including pickup trucks, VANs) was 2%.
Thus, compared to Decree 140/2016, the first-time registration fee for pickup trucks and VANs has increased at least 3 times since April 10, 2019.
Regulations on Exemption and Non-Payment of Registration Tax
Decree 20/2019 also supplements regulations on exemption from or non-payment of registration fees. If an organization or individual has been exempted from or not required to pay registration fees when registering ownership of cars or motorbikes for the first time, but then transfers ownership to other organizations or individuals or changes the purpose of use without being eligible for registration fee exemption, the organization or individual registering ownership of the car or motorbike will have to pay the first-time registration fee on the remaining value of the asset.
Conclusion
Understanding the regulations on 2019 truck registration tax is crucial for vehicle buyers and sellers. Decree 20/2019 brought significant changes to the tax rates, especially for pickup trucks and VANs. Please carefully study the information and contact the relevant authorities for specific guidance before carrying out vehicle transactions.
