Suggest adjusting the registration fees for the transfer price of some assets on the market

VCN - Changing the price calculation of registration fees for some assets transferred on the market will contribute to reforming administrative procedures, avoiding loss of revenue for the State budget.
The Ministry of Finance believed that it was necessary to amend and supplement regulations on the database to determine the transfer price of assets on the market in some cases.
The Ministry of Finance believes that it is necessary to amend and supplement regulations on the database to determine the transfer price of assets on the market in some cases. Source: Internet

Difficulties for tax authorities

Per the Ministry of Finance, in Clause 2, Article 6 of Decree No. 140/2016/ND-CP (amended and supplemented in Clause 1, Article 1 of Decree No. 20/2019/ND-CP) on the price calculation of registration fee for assets that are firearms for hunting, training and sporting; water-borne vehicles, ships; body, chassis and engine of the above property and automobiles, two-wheel motorcycles; trailers or semi-trailers pulled by automobiles are regulated that the actual market-based transfer price shall be founded on a valid sale invoice, quotation of the genuine manufacturer, selling price of the same or similar type of property, dutiable value of a property imported per the legislation on customs, notice of an authorised importer on behalf of a foreign automobile manufacturer, the price uploaded on registration fees management application of tax authorities.

However, during implementation, the Ministry of Finance recognised some problems had arisen. For example, in the case of assets of organisations and individuals that buy raw materials and then hire another unit to process into assets subject to registration fees such as water-borne, ships, etc., then handing those assets back to organisations and individuals for exploitation and use.

"This outsourcing property has firstly appeared on the market and there were no assets that are the same type or equivalent on the market, so there is no basis to determine the price for calculating registration fees. Based on the actual situation, the Ministry of Finance issued Official Letter No. 1520/TCT-CS dated May 14, 2021 guiding local governments to follow the direction based on product costs including value-added tax, special consumption tax (if any) to determine the calculation of registration fee for this case," the Ministry of Finance said.

Along with that, the regulation based on the price on the tax authority's application leads to the problem that the price can only be applied per the application of the local tax office. Meanwhile, the price calculation of registration fees in the case of new cars and motorbikes has arisen in a locality but it has not been included in the registration fee calculation list yet is also a basis for other localities to determine the price for calculating registration fees promptly and quickly for the case of new cars and motorbikes in their locality.

The Ministry of Finance believed that it was necessary to amend and supplement regulations on the database to determine the transfer price of assets on the market in some cases.

Preventing loss of State revenue from registration fee

To solve the above problems, in the draft decree amending Decree No. 140/ND-CP on registration fee calculation prices, the Ministry of Finance proposed amending the provisions of Clause 2, Article 6 of Decree No. 140. /2016/ND-CP (amended and supplemented in Clause 1, Article 1 of Decree No. 20/2019/ND-CP) on the database for determining asset transfer prices on the market for some cases. Accordingly, adding "product cost, including value-added tax, special consumption tax (if any)" as a basis for determining the transfer price of assets in the market in the case that property is self-produced, self-manufactured or outsourced without the same type of assets or equivalent on the market.

Simultaneously, amending and supplementing the database of determining the market transfer price of assets for imported assets as follows: “Notice of the authorised importer on behalf of foreign manufacturers” to cover the types of imported asset. The Ministry of Finance also supplements the data as "prices on the registration fees management application of the tax authorities of the provinces and centrally-run cities" to facilitate determination of the registration fee calculation for new automobiles and two-wheel motorbikes at the time of making registration fee declaration but it was not included in the price list for registration fee calculation.

According to the Ministry of Finance, the change of the above regulations would solve the limitations of the registration fees policy and facilitate taxpayers in declaring and paying registration fees in a timely and fast manner, without affecting the production and business of the firm.

At the same time, contributing to transparent and clear reform of administrative procedures when implementing Resolution No. 19/NQ-CP on the key tasks and solutions to continue to improve the business environment and enhance national competitiveness.

The proposed regulations will also facilitate the determination of registration fees calculation and the adjustment of registration fee calculation list in a fast and accurate manner, appropriate with the characteristics of each type of asset, preventing loss of State revenue.

If the current regulations continue to be maintained, it would not remove the shortcomings and obstacles when determining the price for calculating registration fees, creating a risk for the tax authority because it is difficult to determine the tax rate in the above cases due to a lack of legal basis for determining registration fee calculation, causing loss of State revenue.

By Thùy Linh/Thanh Thuy

Related News

Upgrading IT applications to accelerate PIT refund

Upgrading IT applications to accelerate PIT refund

VCN - On the issue of delayed personal income tax (PIT) refund, the Ministry of Finance said that the Tax sector will continue to upgrade IT applications to support taxpayers in determining where to submit PIT refund applications and look up full information to serve tax declaration and finalization.
Continue to warn about forms of fraud against taxpayers

Continue to warn about forms of fraud against taxpayers

VCN - In response to the increasing prevalence of sophisticated scams targeting taxpayers, the General Department of Taxation (GDT) has issued directives to tax authorities nationwide to strengthen individual income tax management and provide warnings and preventive measures to help taxpayers remain vigilant and protect themselves from fraudulent activities.
Vietnam automobile market and support problem

Vietnam automobile market and support problem

VCN - Continuing the downward trend of 2023 (up to 25%), in the first 4 months of 2024, the number of cars consumed on the market is still falling to a worrying level, high inventory, causing difficulties for automobile manufacturing and trading enterprises. The question is how the Vietnamese automobile industry will develop and how competitive the products will be in the context of the import tax reduction roadmap implemented when Vietnam implements its commitments in the Free Trade Agreement between Vietnam and the European Union (EVFTA).
After six consecutive increase years, tax revenue from real estate transfer plunges

After six consecutive increase years, tax revenue from real estate transfer plunges

VCN – In 2023, real estate market was in extremely difficult time, purchasing power and liquidation had a sharp decline and there was a lack of cash flow, the amount of personal income tax (PIT) from real estate transfer activities plunged.

Latest News

"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") focuses on amending conflicting regulations that are causing obstacles, to facilitate investment, production, and business activities.
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simplified procedure and will be approved at this session. The simultaneous amendment of many provisions in the laws in the financial sector and their early approval demonstrate the determination and great efforts of the National Assembly, the Government, and the Ministry of Finance in creating a system of open and appropriate policies, promoting investment resources in the economy, thereby promoting economic growth in the new period.
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - In the short term, applying 5% VAT on fertilizers may increase selling prices, but in the long term, farmers will benefit from this policy. When the fertilizer manufacture is deducted input tax, it will help reduce investment cost and production cost.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.

More News

Revamping commodity management and trade protection

Revamping commodity management and trade protection

VCN - Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy. Close coordination between management agencies not only helps prevent trade fraud but also creates favorable conditions for exporting businesses, minimizing risks from anti-dumping lawsuits.
Tax support policy is a "lift" for business bounceback

Tax support policy is a "lift" for business bounceback

VCN- Sharing with Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh highly appreciated the effectiveness of tax and fee reduction measures implemented by the Government and the Ministry of Finance. These policies not only enable businesses to reduce input costs and increase profits, but also promote consumption and production of businesses.
VAT policy for on-the-spot imports

VAT policy for on-the-spot imports

VCN- The General Department of Vietnam Customs has instructed Dong Nai Food Industry Corporation on VAT policy for imported tobacco leaves separated from stems.
Applying tax on animal feed ingredient faces problems due to specialized regulations

Applying tax on animal feed ingredient faces problems due to specialized regulations

VCN - The unified application of regulations of specialized legal documents related to value-added tax (VAT) policies on imported raw materials for animal feed has caused many problems. Notably, the accurate identification for imported raw materials for animal feed not only causes difficulties for the enterprise but also for the enforcement authority.
Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

VCN - The Ministry of Finance has just completed the draft Decree of the Government regulating the reduction of land rent in 2024. Accordingly, in the latest Draft, the Ministry of Finance directly proposed to choose the reduction level according to option 2 of 30%.
Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

Ensuring reasonableness upon enforcement of regulations in "1 law amending 7 laws"

VCN - According to the representative of the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Finance and the National Assembly Committees are urgently collecting opinions to complete the draft Law amending seven Laws, to ensure that the issued regulations are reasonable and remove difficulties for businesses.
Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

Ensuring global trade security requires cooperation, exchange and processing of information before the goods arrive

VCN - As import and export activities increase, security risks also increase. Therefore, to meet the requirements of both strict security control and shortening clearance time, facilitating trade, one of the effective solutions is to cooperate, exchange and process information before the goods arrive.
New regulations on foreign indirect investment in Vietnam drafted

New regulations on foreign indirect investment in Vietnam drafted

The State Bank of Vietnam (SBV) is drafting a circular to better manage foreign investment protocols and hopefully make them speedier.
Considering amending regulations on suspension from exit due to tax arrears

Considering amending regulations on suspension from exit due to tax arrears

VCN - To facilitate the implementation of suspension from exit, the General Department of Taxation directs specialized units to study and amend and supplement current regulations to ensure both improving the efficiency of tax debt collection and creating conditions for enterprises and taxpayers to develop stable production and business as well as facilitate travel and trade activities.
Read More

Your care

Latest Most read
"One law amending four laws" on investment to decentralize and ease business challenges

"One law amending four laws" on investment to decentralize and ease business challenges

VCN - According to the Government, the draft Law amending and supplementing certain provisions of the Planning Law, Investment Law, Law on Investment under Public-Private Partnerships (PPP), and Bidding Law (referred to as "One law amending four laws") fo
One law amending seven financial laws: New driving force for economic growth

One law amending seven financial laws: New driving force for economic growth

VCN - Draft 1 of the Law amending 7 laws in the financial sector has been officially submitted and discussed at the 8th session of the 15th National Assembly. According to the Law-making program, the Law will be developed and promulgated following a simpl
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - The representative of the Vietnam Fertilizer Association cites data from the Ministry of Finance, as saying that about VND10,000 billion of VAT has not been deducted from business expenses from 2015 to present.
Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Tax, fee, and land rent exemption, reduction, and deferral policies: a driving force for business recovery and growth

Recently, the implementation of a series of policies on tax, fee, and land rent exemption, reduction, and deferral has provided timely support for businesses to recover and develop, thereby making positive contributions to economic growth.
Revamping commodity management and trade protection

Revamping commodity management and trade protection

Completing commodity management policies combined with applying trade defense measures plays an important role in protecting the interests of businesses and the Vietnamese economy.
Mobile Version