Properties subjected to the registration charge

1. Real property:

a) Buildings: residential houses, business establishments, constructions for other purposes.

b) Land: agricultural and non-agricultural lands, as defined in the Land Law, under the management and use of organizations, households and individuals (regardless of the construction of a structure on such lands).

2. Firearms for hunting, training and sporting.

3. Ships, including barges, motorboats, tugboats.

4. Ships, including yachts, of which the registration of ownership or use with state management agencies is mandatory.

5. Aircrafts.

6. Two-wheel or three-wheel motorcycles, motor scooters, similar vehicles subject to registration and fitted with number plates issued by competent government authorities (hereinafter referred to as motorcycles).

7. Automobiles, trailers or semi-trailers pulled by automobiles, similar vehicles subject to registration and fitted with number plates issued by competent government authorities.

The registration charge shall not be levied on the machines and devices that are required to undergo the registration of ownership and issuance of number plate by competent state management agencies though not defined as automobile in the Law of Road Traffic and guiding documents.

8. The frame, chassis assembly (referred to as the chassis) and engine assembly of an asset subjected to the registration charge according to Section 3, 4, 5, 6 and 7 of this Article shall be replacements whose numbers differ from the chassis number and engine number of the asset for which the competent state management agency issued a certificate of ownership or right of use.

Article 3. Base price

1. Base price of land for calculation of the registration charge

a) The base price from which the registration charged is computed (hereinafter referred to as the base price) of land shall be specified in the Land price list promulgated by People’s Committees of provinces or central-affiliated cities (referred to as the provincial People’s Committees) as per the legislation on land in effect upon the declaration of the registration charge.

b) The following formula defines the base price of a land plot:

Base price of a land plot on which the registration charge is computed (VND)

=

Land area on which the registration charge is levied (m2)

x

Price of a square meter of land (VND/m2) defined in the Land price list of the relevant provincial People’s Committee

The land area on which the registration charge is levied shall be the entire area of the land plot within the right of use of the relevant organization(s) or individual(s). Such land area is determined by the relevant land use right registration office, which provides such information to the relevant tax authority via the “Form of land information for determination of relevant financial obligations”.

c) The base price of land shall, in certain circumstances, be specified as follows:

c.1) The base price of a land plot on which a state-owned house exists and is sold to its current lessee as per the legislation on the sale of state-owned premises to renters shall be the actual selling price defined by the relevant provincial People’s Committee.

c.2) The base price of a land plot that the government allocates by tender or auction (referred to as auction) shall be the actual winning price invoiced or indicated in the written record of winning bid or defined in the competent government authority’s written approval of the winning bid;

c.3) If the user of a land plot, for which a certificate of land use right was issued without registration charge, obtains the competent authority’s permission to convert the use of such land plot to another one on which the registration charge is mandatorily levied, the base price of the land plot shall be the land price apposite to the converted use in the Land price list promulgated by the relevant provincial People’s Committee pursuant to the legislation on land in effect upon the calculation of the registration charge;

c.4) If the price of a resettlement land plot, as specified and approved by the competent government authority allocating such land, is balanced between the compensation price of the reacquired land and the land price in the resettlement area, the base price of such land plot shall be the price specified and approved by the competent government authority;

c.5) If a land plot’s price defined in the contract for transfer of land use right exceeds that prescribed by the relevant provincial People’s Committee, its base price shall be the contracted price.

If the contracted price is lower than that prescribed in the Land price list of the relevant provincial People’s Committee, the land plot’s base price shall be the price prescribed by the provincial People’s Committee pursuant to the legislation on land in effect upon the declaration of the registration charge.

2. Base price of buildings for calculation of the registration charge

a) The base price of buildings shall be defined by provincial People’s Committees as per the legislation on construction in effect upon the declaration of the registration charge.

Departments of Finance shall lead and cooperate with Departments of Construction and relevant local agencies in defining the base price of buildings, according to Point b, Section 1, Article 6 of the Government’s Decree No. 140/2016/ND-CP and to Section 2 of this Article, and report thereof to provincial People’s Committees, which promulgate the local list of buildings’ base price for calculation of the registration charge.

b) The following formula defines the base price of a building:

Base price of a building for calculation of registration charge (VND)

=

Floor space of the building on which the registration charge is levied (m2)

x

Price per 01 (one) square meter (VND/m2) of the building

x

Ratio (%) of the building’s remaining quality on which the registration charge is levied

b.1) The floor space of a building on which the registration charge is levied is the entire floor area (including the floor area of ancillary structures) under the legitimate ownership of (an) organization(s) or individual(s);

b.2) The price per 01 (one) m2 of the building is the actual price of one (01) “newly” constructed m2 of the floor area according to the building’s grade and rank, as defined by the relevant provincial People’s Committee pursuant to the legislation on construction upon the declaration of the registration charge;

b.3) The ratio (%) of the building’s remaining quality on which the registration charge is levied shall be regulated by the provincial People’s Committee as per the laws.

c) The base price of buildings shall, in certain circumstances, be specified as follows:

c.1) The base price of a state-owned building sold to its current lessee as per the legislation on the sale of state-owned premises to renters shall be the actual selling price defined by the relevant provincial People’s Committee;

c.2) If the price of a resettlement house, as specified and approved by the competent government authority, is balanced between the compensation price in the area where the reacquired house is situated and the housing price in the resettlement area, the base price of such house from which the registration charge is calculated shall be the price specified and approved by the competent government authority;

c.3) The base price of a building purchased through auction as per the legislation on bidding and auction shall be the winning price actually invoiced;

c.4) If a building’s price defined in the contract for sale of the building or for transfer of the right to use it exceeds that prescribed by the relevant provincial People’s Committee, the registration charge shall be computed from the contracted price.

If the contracted price is lower than that prescribed by the provincial People’s Committee, the building’s base price shall be the price prescribed by the provincial People’s Committee pursuant to the legislation on construction in effect upon the declaration of the registration charge.

c.5) The base price of an apartment shall include the value of the land area allocated accordingly. The land allocation coefficient for calculation of the charge for registration of the apartment shall accord with the allocation coefficient for the type of such apartment as defined in the legislation on the tax on non-agricultural land use.

3. Base price of other assets for calculation of the registration charge

a) The base price of other assets shall be the actual market-based transfer price.

a.1) The actual market-based transfer price of an asset, as indicated on the valid sales invoice, shall be the gross transaction price inclusive of taxes and fees charged on the asset on transfer.

The actual transfer price of an asset whose owner is not engaged in any business upon transferring such asset to another entity shall be that defined in the sale decision or in the contract of sale notarized or certified pursuant to the legislation on notarization and certification.

a.2) The base price of a self-constructed asset shall be its prime cost;

a.3) The base price of a directly imported asset shall be its value for import duty, as stated in the customs declaration pursuant to the legislation on customs, inclusive of (+) the import duty, the excise tax and the value added tax (if chargeable).

b) The base price of an asset defined in Section 6 and Section 7, Article 2 of the Government’s Decree No. 140/2016/ND-CP dated October 10, 2016 and of the frame, chassis assembly and engine assembly of such assets shall be governed by the Ministry of Finance’s Circular on the base price list for automobiles and motorcycles.

c) Particular circumstances:

c.1) The base price of an asset purchased directly from an entity licensed to produce or assemble goods domestically (referred to as the producer) shall be the actual transacted price (inclusive of the value added tax and excise tax – if chargeable) as shown in the respective legitimate sales invoice.

The buyer shall be deemed to have purchased goods directly from the producer when the former buys such goods from the sales agencies that enter into an agency contract directly with the producer and sell the goods at the producer’s price.

c.2) The base price of an asset acquired on installment purchase shall be its lump-sum price (without the installment interest) inclusive of the value added tax and excise tax (if chargeable);

c.3) The base price of an asset purchased through auction (including those under seizure or on liquidation) as per the legislation on bidding and auction shall be the winning price actually invoiced;

c.4) The base price of a transport vehicle fitted with specialized equipment, such as a refrigerated truck fitted with air conditioner, a radar-fitted wave-tracking vehicle and others, shall be its full value that includes the equipment fitted on the vehicle.

d) The base price of a used asset (except the used assets imported directly and initially registered for use at the registration charge defined pursuant to Point a.3 of this Section) shall be founded on the past period of use and remaining value of such asset.

The remaining value of the asset shall be equal to its value in new condition multiplied with the ratio of its remaining quality, where:

d.1) The asset’s value in new condition is determined according to Point a and Point b of this Section.

d.2) The ratio (%) of the asset’s remaining quality upon its registration is determined in the following manner:

– In new condition: 100%.

– It has been used for 1 year: 90%

– It has been used for more than 1 to 3 years: 70%

– It has been used for more than 3 to 6 years: 50%

– It has been used for more than 6 to 10 years: 30%

– It has been used for more than 10 years: 20%

The period of use of a used asset shall span from the year of manufacture to the year of declaration of the registration charge.