CIRCULAR

GUIDING THE IMPLEMENTATION OF DECREE No.193-CP ON THE 29TH OF DECEMBER 1994 OF THE GOVERNMENT ON REGISTRATION FEES

Pursuant to Decree No.193-CP on the 29th of December 1994 of the Government providing for registration fees;
The Ministry of Finance gives the following guidance on its implementation:

I. PROPERTIES SUBJECT TO REGISTRATION FEES

1. Properties subject to registration fees:

As stipulated in Article 1 of Decree No.193-CP on the 29th of December 1994 of the Government, the properties which must register the ownership and utilization right with the State management agencies as prescribed by law, are subject to registration fees. They comprise the following:

- Houses including dwelling houses, working houses, workshops, storages, storehouses, shops, boutiques and other constructions;

- Land including residential land, land for construction, agricultural land, forestry land, aquacultural land, salt making land, and other kinds of land;

- Ships and boats of various types including steamers, launches, barges, ferry boats, junks, canoes, and other water transport means;

- Motor vehicles of various types including cranes, excavators, bulldozers, rollers, and other four-wheeled vehicles and all other machines when effecting an overhaul shall have to re-register with the State management agencies;

- Motorcycles of all types including two-wheeled motorbikes, three-wheeled cycles, Lambretta vehicles, small motor vans, motor cyclos, and other motor vehicles;

- Hunting and sport guns of all types.

2. Persons and organizations that have to pay registration fees are defined in Article 2 of Decree No.193-CP on the 29th of December 1994 of the Government.

In case an international treaty which Vietnam has signed or acceded to provides otherwise, that treaty shall prevail.

3. Registration fees are not collected in the following cases:

a/ The land allowed by the authorized State agencies to be used for public utility as provided for in Article 58 of the Land Law, including: land for the construction of roads, bridges, culverts, pavements, sewage and drainage facilities, rivers, lakes, dykes, dams, schools, hospitals, markets, public parks, flower gardens, playing grounds for children, public squares, stadiums, airports, sea ports and other public works as stipulated by the Government;

b/ The land allowed by the authorized State agencies to be used for the prospection and exploitation of mineral deposits and scientific research in the experimentation with plants and animals, and other direct research works on the land.

In case these types of land are used for the construction of dwelling houses, working houses and other constructions including research institutes, the users have to pay registration fees as prescribed.

c/ With regard to the land allotted for the first time by the State and on which the user has paid the land use right duties as stipulated at Paragraph a, Point I, Section I of the Circular No.2-TC/TCT on the 4th of January 1995 of the Ministry of Finance (including land associated with the house under State ownership, for which the land use right duties have been accounted for in the selling price of the house and remitted to the State budget under Decree No.61-CP on the 5th of July 1994 of the Government).

With regard to the land allotted for the first time by the State for use in agricultural, forestry, aquaculture and salt making and which are exempt from land use right duties under the Land Law, they are also exempt from registration fees. However, if the land is transferred from another organization or individual, the recipient organization or individual still has to pay registration fees;

d/ The house and land used as office of a diplomatic representation or consulate, or as residence of the head of a foreign consulate in Vietnam;

e/ Properties specially used for defense and security purposes such as:

- Houses and land used as office for the stationing of troops, as a military base, and other defense projects, simulated battlefronts and other specific constructions, military stations and ports, industrial, scientific and technical projects in service of defense and of defense-economy, storages of the armed forces, shooting range, drill ground, ground for the testing of weapons, schools, hospitals and sanatoria of the armed forces, and other land used for defense and security purposes prescribed by the Government in each specific period;

- Ships and boats of all types of the defense and security units patrolling on rivers and the sea;

- Automobiles, motorcycles and vehicles of all types, guns intended to serve the fighting and drilling of the defense and security forces, including fire engines.

In case the organizations and individuals of the defense and security forces use their properties for production, business and other purposes, or transfer and sell the properties which are being used for defense and security purposes to other organizations or individuals to be used for non-defense and security purposes, the recipient organizations and individuals shall have to pay registration fees;

f/ The "gratitude house" including the land on which it is built and which is registered for ownership and utilization right in the name of the recipients who are war invalids, the families of fallen heroes and the persons credited with meritorious services to the revolution, or invalid persons or old and lonely persons and children under age who have no support;

g/ The vehicles used specifically for invalids registered under the name of the invalids;

h/ The properties divided or integrated which have to be re-registered or which are transferred between different regions in the Vietnamese territory without changing the ownership. More concretely:

- Properties which have been registered for ownership and utilization right, but later are re-registered for ownership and utilization right under the name of the organization which has been divided or integrated by decision of the authorized agency.

In case the property which has been registered as a common property of the spouses and which is re-registered on the distribution of property at the divorce, shall not have to pay registration fee for the value of the divided property.

- The property which has been registered for ownership and utilization right and which involves no change in the ownership when re-registered after the readjustment of the regions on the Vietnamese territory.

A property which is transferred within an organization or among the dependent accounting units or book report accounting units (i.e. not a legal person) or among depending accounting units, or book report accounting with this organization by decision of the authorized level, shall be also regarded as unchanged in property ownership.

i/ The houses and land which have received compensation for the part recovered by the State.

In case the houses or land which have been recovered and which have not received certificates of house and land use right and have not paid registration fee, if they now receive compensation from the State which allows it to register for house ownership and land use right, it still has to pay registration fee before registration with the State management agency.

II. BASES FOR CALCULATION OF REGISTRATION FEE

As stipulated in Article 4 of Decree No.193-CP on the 29th of December 1994 of the Government, the registration fee is calculated as a percentage of the value of the property at the time of registration. The registration fee to be paid is calculated as follows:

1. The value of the property subject to registration fee is determined on the basis of the market price in Vietnam at the time of registration.

In a number of specific cases, the value of property subject to registration fee is determined as follows:

a/ Value of land subject to registration fee:

- The area of land subject to registration fee is the whole actual land area within the compound which the organization or individual is allowed to register for use.

- The price of one square meter of land (in VND) shall be set by the People's Committee in the provinces or cities directly under the Central Government in accordance with the framework of prices of the land categories issued by the Government.

In case the value of the land is auctioned or the recipient also buys a house owned by the State, the price for the calculation of registration fee shall still be set by the People's Committee of the province or city.

With regard to the land on which a multi-storied house has been built and occupied by many families, the price for the calculation of registration fee for each story shall comply with the table of coefficients defined in Paragraph b, Point 2 and Article 7 of Decree 61-CP on the 5th of July 1994 of the Government.

As for agricultural, forestry, aquacultural and salt-making land, when there is a transfer of the land use right, the price for calculation of registration fee is the price of agricultural land. However, if the authorized State agency allows the change of the land use purpose from agriculture, forestry, aquaculture or salt making land to construction or other purposes, the price shall be that of non-agricultural land.

b/ Value of house for calculation of registration fee:

- The area of the house subject to registration fee is the total area of the house floor, including the floor space of the auxiliary constructions at the time of the registration of ownership and use.

- The price of one square meter (VND/sq.m.): the newly built houses shall apply the price of new constructions for each grade and category of house set by the People's Committee of the province or city directly under the Central Government at the time of the registration.

With regard to used houses, the value for the calculation of registration fee is based on the remaining quality of the house and the price of a newly built house at the time of the registration and corresponding with the grade and category of house on which the fee is to be paid. The Tax Department may ask permission of the People's Committee of the province or city to set up a Council composed of representatives of the Tax, Finance, Price, Construction, Land and House Services (if any) in order to evaluate the percentage of the remaining quality of the house, as basis for determining the value of the house for a more correct and objective evaluation.

In case many families live on different floors of the same multi-storied house, the price for the calculation of registration fee for each floor shall comply with the adjustment coefficients stipulated in Paragraph b, Point I, Article 7 of Decree No.61-CP on the 5th of July 1994 of the Government.

c/ The value for the calculation of registration fee for a ship, boat, car, motor vehicle, hunting rifle and a sport gun is the value of property on the Vietnam market at the time of registration.

Basing themselves on the market prices in each period, the Tax Department shall cooperate with the concerned agencies in the locality to work out and submit to the People's Committee of the province or city directly under the Central Government a table of minimum standard prices for the calculation of registration fee, and to publicize this table for application within the boundary of the locality for each category of ship, boat, automobile, motor vehicle, hunting rifle and sport gun. When the market price fluctuates by 10% and more (either up or down), the price for the calculation of registration fee must be readjusted in time to suit the reality, and this must be reported to the Ministry of Finance (the General Tax Department) 15 days at the latest after the decision to readjust the prices is issued.

When calculating and collecting the registration fee, if the value of the property stated in the fee declaration or the buying receipt of the payer is lower than the standard price set by the People's Committee of the province or city, the price for calculation of the registration fee is the minimum price set by the People's Committee or city. If it is higher than this minimum price, the price for calculation of registration fee is the actual price written on the buying receipt or selling receipt declared by the payer.

2. Percentage of registration fee for different kinds of property:

a/ Houses, land, ships and boats: 2% (two per cent).

b/ Automobiles, motor vehicles, hunting rifles, sport guns: 4% (four per cent).

The maximum registration fee for a property subject to only one fee is 500 million (five hundred million) VND.

III. DECLARATION FOR PAYMENT OF REGISTRATION FEE

1. An organization or individual that buys or receives a property subject to registration fee stipulated in Point 1, Section I of this Circular (including property not subject to registration fee) before registering for ownership and utilization right with the State management agency, has to:

a/ Declare with the tax agency fully and truthfully the situation and real state of the property according to the set form attached to this Circular, 30 days at the latest from the completion of the procedure for the transfer of property between the two parties and certified by the State Notary or the authorized People's Committee of the district. For the cases of property inheritance, the deadline is counted from the day the legacy testament becomes effective.

The declaration shall be done in two copies, and sent to the tax agency at the place where the collection of registration fee takes place.

Upon receipt of the declaration submitted by the organization or individual concerned, the tax agency shall check the dossier and the figures and certify them on a duplicate form, one copy to serve as notice of registration fee payment and the other to be kept at the tax agency.

In complicated cases which require time for checking and certification, the declarer is entitled to ask the tax agency to grant his/her a "certificate of receipt of registration fee declaration," with specifications about the documents attached to the declaration, the date of receipt of the declaration, and the date of answer.

b/ To supply fully and take responsibility before law on the dossier and necessary documents related to the calculation of registration fee, and take responsibility of their authenticity and truthfulness.

- For the land, there must be the following legal papers:

+ If the land is allotted by the State, the documents must include: the notice on land allotment and the map of the land allotted issued by the authorized State agency for management of land, certificates of payment of land use right (receipt on payment or certificate of payment certified by the Treasury agency), or the decision of the authorized level to exempt from land use right duties.

+ If the land is transferred, assigned, exchanged, donated or inherited, it must have a certificate of the lawful land use right of the land owner attached to the map of the land plot; the transfer certificate between the owner of the land and the recipient of the land use right; the declaration of tax payment for the transfer of the land use right attached to the certificate of full payment of the transfer tax, or the decision to exempt from the tax issued by the authorized level as prescribed by the Law on the Land Right Transfer Tax.

+ With regard to the land which has been legalized under Decree No.60-CP on the 5th of July 1994 of the Government, there must be proper papers on land as prescribed by law.

In case the land is legated to many persons, there must be also the common agreement written and signed by the recipients under the law on inheritance, or the decision of the effective verdict to this effect.

- For a house, there must be the following legal papers:

+ If the house acquired through selling and buying, assignment, exchange, donation, inheritance or trusteeship (delegation), there must be a certificate of legal ownership of the house of the deliverer; the certificate of transfer between the legal deliverer and recipient.

If the house is bought from State ownership, there must be the certificate of sale of the authorized agency and the sale voucher on which the payment has been fully made (the receipt is issued by the Ministry of Finance).

- With regard to ships, boats, automobiles, motor vehicles, motorbikes and rifles, there must be certificates of their lawful origin such as:

+ If the property is bought or received through import, there must be certificates of lawful import or sale receipt, and the declaration of the origin of import (issued by the Ministry of Finance).

+ If the property is bought or received and has been registered for ownership and utilization right in the country, there must be a certificate of the ownership and utilization right of the deliverer, and the certificate of transfer between the legal deliverer and receiver. With regard to a liquidation property, there must also be the decision of property liquidation issued by the authorized agency and the sale receipt of the liquidation property (according to the form issued by the Ministry of Finance).

+ If the property is bought or received from a confiscation, there must be a decision on confiscation, the decision of the authorized agency to handle the confiscated property and the sale receipt issued to the buyer (in the form issued by the Ministry of Finance).

c/ To remit fully the registration fee to the State budget according to the following procedure:

Basing himself on the notice of payment of registration fee issued by the tax agency (written on the declaration of registration fee), the payer shall directly pay the fee to the State Treasury under the guidance of the collecting agency. If the Treasury is too far from the place of the payer, the Tax Agency shall directly collect the fee.

In the remittance of the registration fee to the State Treasury, the payer must use the payment certificate issued by the Ministry of Finance (in cash or money transfer orders). The payment bill must state clearly the chapter, kind, item and category corresponding to the paying organization or individual, Section 24 on "registration fee" defined in the Table of Contents of the State Budget. Upon receiving the registration fee, the Treasury shall certify it in the voucher "money already received," sign and seal, and transfer it as prescribed.

In case the tax agency directly collects the fee, upon collection it shall issue a receipt (code CTT06) to the payer. The receipt must clearly state the name of the paying organization or individual, in Section 24 on "registration fee" in the Table of Contents of the State Budget as prescribed.

The joint certificate of payment of registration fee certified by the Treasury Agency or the joint receipt of registration fee delivered by the Tax Agency to the payer, attached to the declaration of payment are the legal papers certifying that the fee is fully paid before the registration of the ownership and utilization right of the property. These papers shall be kept in the files of the State management agency concerning this property. If the paying organization or individual asks for a certificate of payment in order to enter it into its accounts, the Treasury Agency or Tax Agency shall have to issue to the payer a "voucher" (issued by the Ministry of Finance) recording exactly the sum already paid, the sum and serial number of the payment bill or the receipt of the fee, with a view to avoiding repeat in accounting.

An organization or individual that declares the registration at the Tax Service, the fee shall be paid to the Treasury where the Tax Service has its office or at the place of declaration (if the Tax Agency directly collects the fee). If the declaration is made at the Tax Department (the Section for the collection of registration fees and other revenues), the fee shall be paid to the Treasury at the transaction center of the Tax Department, or to the Section for the collection of registration fee where the declaration is made (if the Tax Agency directly collects the fee).

2. The Tax Agency which collects the registration fee has the following tasks and powers:

a/ To guide the organizations and individuals to strictly carry out the declaration and pay the registration fee.

The declaration and collection of registration fee must be associated with the State management agency which organizes the registration of the ownership and utilization right over the property. More concretely:

- The Tax Service at the district, township and town People's Committee is authorized to organize the registration and issuance of certificates of ownership and utilization right on house and land, and has the responsibility of organizing the collection of registration fees for houses and land in its territory.

- The Tax Department (the Section for the collection of registration fee and other revenues) shall directly organize the collection of registration fees on ships, boats, automobiles, motor vehicles, hunting rifles, sport guns, houses and land in the inner districts of the city or town where the office of the People's Committee of the province or city directly under the Central Government is located. It is forbidden to delegate powers to a subordinate level.

With regard to Ho Chi Minh City, due to the large quantity of the properties subject to registration fees, the Tax Department may organize the collection of fees suitable for the practical conditions in the locality, ensure the accurate, full and timely collection and in a convenient manner for the payers.

b/ To check the documents in the declaration, and evaluate the real state of the property in order to calculate and ratify and announce the fee to be paid, the time and place of payment in conformity with the regulations.

To record the fees in the book, keep on file and preserve the dossier of each property on which registration fee has been paid in order to monitor, check and control when necessary.

c/ To collect and remit the registration of fees to the State Budget if the Tax Agency directly collects the fees.

The registration fee collected must be remitted to the budget on the same day as it is collected. If the Tax Agency is far from the Treasury, the fees may be remitted once every five days. However, if the fees collected in one day total 100 million (one hundred million) VND and more, they must be remitted to the State Budget on the same day as they are collected.

To account in time for the fees collected and remitted according to the chapter, kind, item and category corresponding to the payer, as stipulated in Section 24 on "Registration fee" in the Table of Contents of the State Budget. Each month and each quarter, within the first ten days of the month at the latest, the declaration of the registration fee must be compared with the payment bill or the receipt of collection in order to determine that the fee corresponds with that which must be collected, has been collected and has been remitted to the State Budget in the previous month and previous quarter, and the findings must be reported to the Tax Agency of the higher level.

d/ To record in writing and settle the complaints about the collection and payment of registration fees under the jurisdiction stipulated by law;

e/ To examine and settle the complaints about the collection and payment of registration fees under its jurisdiction and according to the prescribed regime.

3. The authorized State management agencies shall organize the registration of the ownership and utilization right of the properties subject to registration fee. They have the responsibility to collaborate with the Tax Agencies to check the observance of the regime of the collection and remittance of registration fees, as stipulated in Decree No.193-CP on the 29th of December 1994 of the Government and the guidance in this Circular. They can issue certificates of ownership and utilization right of the property only after the concerned organization or individual has paid fully the fee written on the payment bill with certification of the State Treasury Agency (if the fee is paid into the Treasury), or receipt of collection issued by the Tax Agency (if the Tax Agency directly collects the fee) in conformity with the fee to be paid written on the payment bill (the declaration already ratified by the authorized level of the Tax Agency).

In case no registration fee is collected, the owner of property shall, at the registration of his ownership and utilization right, have to produce to the State management agency "the declaration of registration fee" already certified by the Tax Agency attached to the dossier certifying that the property belongs to the categories which are exempt from registration fee.

IV. HANDLING OF VIOLATIONS AND SETTLEMENT OF COMPLAINTS

1. The organization or individual that does not fully fill the procedure of declaration, that does not pay fully the registration fee as prescribed in this Circular, shall not be granted the certificate of ownership and utilization right over the property.

2. The organization or individual that pays registration fee to the State budget later than prescribed in the notice of the Tax Agency, shall be fined 0.02% (two per ten thousand) of the arrears.

The organization or individual, that deliberately defrauds the registration fee (registering ownership and utilization right over the property without paying registration fee; fiddling with the figure of the fee already paid and recorded on the payment bill or the collection voucher to make it conform with the value of the property at the time of registration...), has, apart from paying fully the fee as provided for in this circular, depending on the extent of the violation, be fined from one to three times the fee the owner has defrauded. In serious cases, the owner may be examined for penal liability as prescribed by law.

The competence and procedure for administering sanctions stipulated in this Point shall be effected as prescribed in the Decree of the Government and the Circular of the Ministry of Finance guiding the implementation of Decree No.01-CP on the 18th of October 1992 concerning the administration sanctions in the domain of tax.

3. The organization or individual that misuses its/his position and powers to appropriate and embezzle or otherwise causes the loss of the registration fee money, shall have to make compensation for all the money it/he has misappropriated or embezzled or caused to be lost, and depending on the extent of the violation shall be disciplined, receive administrative sanctions or examined for penal liability as prescribed by law.

The tax agency and tax officials and the State management agencies or officials that violate the regime of collection and remittance of registration fees, or take actions to cover up the violations of law concerning the collection and payment of registration fees, shall depending on the extent of the violation, be disciplined, receive administration sanctions, or be examined for penal liability as prescribed by law.

A tax official, who either out of irresponsibility or who deliberately mishandles thus causing damage to the fee payer or deliberately refuse to handle, thus causing losses to the State, shall have to compensate for the lost money and he will also, depending on the extent of the violation, be disciplined, receive administrative sanctions or be examined for penal liability as prescribed by law.

4. An organization or individual that detects evasions or frauds of registration fees or acts of hassle in the process of the collection and payment of registration fee, shall be commended or rewarded according to the reward regime in the domain of tax provided for by the State.

5. An organization or individual that pays registration fee is entitled to file complaints against the acts of deviation from Decree No.193-CP on the 29th of December 1994 of the Government and the guidance of this Circular. The complaint shall be sent to the Tax Agency directly collecting the fee.

The agency receiving the complaint must consider and settle it within 30 days from receipt of the complaint. With regard to complicated cases, the time-limit may be longer but at any rate must not be more than 60 days after receipt of the complaint.

If the complainant does not agree with the decision of the complaint receiving agency, or his complaint is not solved after the prescribed time-limit, he may complain to the Tax Agency of a higher level of the receiving agency. The decision of the Ministry of Finance is final.

6. The Tax Agency shall have to return the registration fee or the fine unduly collected within 30 days after receipt of the effective decision. The organization or individual that has collected fees at variance with law in this case shall be disciplined. In case of recidivism , it/he shall be dismissed from the tax agency or be examined for penal liability as prescribed by law.

7. When it detects and concludes on a false declaration, or an evasion of registration fee, or a mistake concerning the fee, the Tax Agency is authorized to order the retroactive collection or reimbursement of the fee that must be paid based on the value of the property at the time of the false declaration or the evasion, and on the market price at the time of the registration.

V. ORGANIZATION OF IMPLEMENTATION

1. The Tax Agency at all levels shall have to cooperate with the State management agency having the function of registering the ownership and utilization right of property in the collection and control of the observance of the regime concerning the collection and payment of registration fees, in conformity with Decree No.193-CP on the 29th of December 1994 of the Government and the guidance at this Circular.

2. This Circular takes effect from the 1st of January 1995. The earlier regulations on registration fees which are contrary to Decree No.193-CP and the guidance in this Circular are now annulled. The procedure on the collection of registration fees on vehicles to be paid on instalment, for which the Ministry of Finance has provided for implementation in Official Dispatch No.403-TC/TCT on the 24th of February 1994 of the Ministry of Finance, shall continue to apply till further regulation.

With regard to some specific cases, the following solutions shall apply:

a/ With regard to the property which is a house or land, if the organization or individual bought or received it prior to the 31st of December 1987 (before the State issued Decree No.222-HDBT on registration fee) and has not received certificates of ownership and utilization right and has not paid registration fee, the owner shall have to pay the fee for the latest transfer (but the owner has not to pay for the other transfers occurring prior to the 31st of December 1987). If the house or land was bought or received from the 1st of January 1988 onward (date when Decree No.222-HDBT on registration fee took effect), in each transfer, the owner must register the ownership and utilization right with the State management agency and must pay registration fee for each transfer (except when the owner is exempt from payment of registration fee).

b/ If the property is a ship, boat, automobile, motor vehicle hunting rifle, sport gun, and if it has not been put to use and is not issued the certificate of ownership or utilization right by the State management agency, the owner must pay registration fee only when registering with the State management agency. If the owner has obtained the certificate of ownership and utilization right, each change of ownership of property must be re-registered with the State management agency and must pay registration fee.

c/ With regard to the organization or individual that has declared the registration fee with the Tax Agency prior to the 31st of December 1994:

- If the owner was already notified by the Tax Agency of the payment of registration fee prior to the 31st of December 1994 (notified in writing of the sum to be paid, the date and place of the payment), he must pay registration fee according to the sum written on the notice.

- If he has received no notification of registration fee payment from the Tax Agency or he is notified of the date for payment of the fee after the 31st of December 1994, the owner shall have to pay the registration fee as defined in Decree No.193-CP on the 29th of December 1994 of the Government.

d/ If a person is found to have defrauded or evaded registration fee (registering ownership and utilization right with the State management agency without paying the registration fee...), he will have to pay retroactive fee in conformity with the regime of registration fee defined at the time of registration with the State management agency. Besides, he shall also be fined for his deliberate fraud against registration fee stipulated in Point 2, Section IV of this Circular. If the State management agency covers up these acts of fraud in registration fee, it shall be fined in accordance with Point 3, Section IV of this Circular.

e/ The organizations and individuals that declare their payment of registration fees from the 1st of January 1995 onward, shall have to pay registration fees according to the stipulations in Decree No.193-CP on the 29th of December 1994 of the Government.

In case the Tax Agency has collected more than the level that must be paid stipulated in Decree No.193-CP, it has to return to the payer the whole excess money, namely the difference between the sum already paid at the rate defined in Decree No.222-HDBT minus the registration fee to be paid at the rate in Decree No.193-CP. The local Tax Agency, Finance Agency and State Treasury have the responsibility to collaborate to complete the reimbursement before the 31st of March 1995, and ensure that no hassle or inconvenience be created for the recipient of the excess money.

3. The Ministers, the Heads of the agencies attached to the Government, the Heads of the central agencies of the Party and mass organizations, the Presidents of the People's Committees of various levels are requested to base themselves on their functions, tasks and powers to direct the correct implementation of the regulations in Decree No.193-CP on the 29th of December 1994 of the Government and the guidance of this Circular.

In the process of implementation, should any problem arise, these agencies are requested to inform in time the Ministry of Finance for study and supplementary guidance.

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