Buying a used car can reduce registration tax?
According to Decree 103/2021/ND-CP stipulating the registration fee rate for cars, newly registered domestically assembled cars for the first time will receive a 50% discount on the registration fee. This Decree will officially expire on May 31, 2022, and with less than half a month left, people are showing interest when buying cars at this time.
Buying a used car can reduce registration tax?
Buying a used car is not exempt from registration tax. CarT’s photo.
According to Decree 103/2021/ND-CP, the 50% discount on registration fees for domestically assembled cars is only applied to newly registered cars for the first time. Therefore, people buying cars will still have to pay registration fees as usual, except for some special cases.
When buying a used car, in order to ride it legally, the car owner also needs to pay additional taxes, including: Registration tax, name change fee, number plate change, registration fee, road maintenance, liability insurance compulsory civil duty…
How to calculate registration fee for used cars
How to calculate used car registration fee. VF photo.
According to Article 5 of Decree 140/2016/ND-CP and Point a, Clause 2, Article 1 of Decree 20/2019/ND-CP, the LPTB of used cars will be calculated according to a separate formula, specifically as follows:
Registration fee = Registration fee calculation price x 2%.
In which, to calculate the amount of registration fee payable, the customer must know the price to calculate the registration fee with the buyer of a used car, and must calculate the percentage of the remaining quality of the car.
To calculate the residual value of a used car, the buyer will apply the following formula:
Registration fee calculation price (residual value) = Value of new property x % of remaining quality.
The percentage (%) of the remaining quality of the old car is determined by year as follows:
Used Time | Residual value compared to new car |
|---|---|
Less than 1 year | 90% |
From 1-3 years | 70% |
From 3-6 years | 50% |
From 6-10 years | 30% |
Over 10 years | 20% |
Note, for used cars, the percentage of used car quality is calculated from the year of manufacture to the year of declaration of the registration fee.
For example: A new Toyota Vios in April 2022, the first registration fee calculation price is 600 million VND, by December 2022, the car is resold, the registration fee is calculated as follows:
Registration fee = 2% x (600 million VND x 90%) = 10.8 million VND.
Thus, the car will not be eligible for registration fee incentives and will apply the registration fee calculation method depending on the remaining value of the car at the time of transfer.
at Blogtuan.info – Source: danviet.vn – Read the original article here
