Transferring car ownership involves a number of procedures and fees, and the process can be a bit confusing. Let’s break down the necessary steps for transferring car ownership from a company to another company or an individual.
1. Transferring Car Ownership from Company to Company
For Cars Registered in the Same Province
Submit the application at the office of the Provincial Traffic Police Department
Within 07 days from the date of transferring the ownership to an individual or organization, the car owner must personally or authorize an individual or service organization to submit the vehicle registration certificate to the vehicle registration authority.
- Proof of tax payment
- Vehicle registration application form (as per the prescribed format)
- Proof of ownership transfer
- Certificate of license plate and registration certificate retrieval. This is not required if the ownership transfer occurs within the same province.
- Owner’s documents: Circular 58/2020/TT-BCA states that if the owner is a Vietnamese organization or company, they must present the representative’s ID card along with an introduction letter from the organization or company.
For Cars Registered in Different Provinces
For the Seller
Submit the application at the Reception and Results Return Department of the Provincial/City Traffic Police Department
- Vehicle registration certificate and license plate
- 2 Vehicle transfer declaration forms
- Proof of ownership transfer (Company’s decision to sell the car)
- Documents of the purchasing company, unit, or individual.
For the Buyer
- Documents of the purchasing company
- Vehicle registration application form
- Proof of tax payment
- Certificate of license plate and registration certificate retrieval
- Vehicle transfer declaration form
After the registration application is accepted and found to be valid, the buyer pays the vehicle registration fee as per regulations and will be issued a new license plate. The Vehicle Registration Certificate will be issued within 2 working days from the date of receiving the valid application by the competent authority.
2. Transferring Car Ownership from Company to Individual
For Cars Registered in the Same Province
Transferring car ownership within the same province
- Vehicle registration application form
- Proof of tax payment
- Proof of ownership transfer (Company’s decision to gift, donate, or sell the car)
- Owner’s documents (According to Circular 15/2014/TT-BCA, if the owner is a Vietnamese organization or company, they must present the representative’s ID card along with an introduction letter from the organization or company)
- VAT invoice
- Vehicle purchase or donation agreement
The license plate will be issued immediately upon receiving the valid vehicle registration application.
According to Decision 933/QD-BCA-C08, the Vehicle Registration Certificate will be issued within 02 working days from the date of receiving the valid application.
For Cars Registered in Different Provinces
For the Seller
The seller completes the procedure at the place where the registration was issued
- 02 Vehicle transfer declaration forms
- Proof of ownership transfer (Company’s decision to gift, donate, or sell the car)
- Vehicle registration certificate and license plate
- Buyer’s documents (According to Circular 15/2014/TT-BCA, these documents can include: ID card/Household registration book/Introduction letter from the head of the working agency, unit, along with the Police ID card; Military ID card/Student ID card and introduction letter from the school)
The Provincial Traffic Police Department will issue a vehicle transfer and relocation application for the seller.
The Provincial Traffic Police Department will issue a vehicle transfer and relocation application for the seller. The selling company will then transfer this application to the buyer, who will use it to complete the registration procedure at the destination province.
For the Buyer
The buyer will be issued a license plate immediately upon submitting a valid vehicle registration application.
- Vehicle registration application form
- Proof of tax payment
- Vehicle transfer declaration form
- Vehicle transfer and relocation application, along with proof of ownership transfer and the vehicle’s original documents
- Buyer’s documents (ID card/Household registration book/Introduction letter from the head of the working agency, unit, along with the Police ID card; Military ID card/Student ID card and introduction letter from the school)
The buyer will be issued a license plate immediately upon submitting a valid vehicle registration application. The Vehicle Registration Certificate will be issued within 02 working days from the date of receiving the valid application.
Note: For company-owned vehicles, a VAT invoice, a sales invoice, or a self-printed invoice as per legal regulations is required (point b, clause 16, Article 25 of Circular 15/2014/TT-BCA).
3. Costs for Transferring Car Ownership from a Company
Transferring Car Ownership from Company to Company
The cost of transferring car ownership from a company to another company includes the tax payment and vehicle registration fee.
Tax Payment
According to Decree 20/2019/ND-CP: The tax payment for used cars = 2% x taxable value
The taxable value for used cars is calculated based on the remaining value considering the usage time.
Remaining value of the asset = New asset value x % of remaining quality of the asset
The percentage of remaining quality of the car is determined as follows:
| Usage Time | Remaining Value of the Car Compared to a New One |
|---|---|
| Within 1 year | 90% |
| 1-3 years | 70% |
| 3-6 years | 50% |
| 6-10 years | 30% |
| Over 10 years | 20% |
The vehicle registration fee is specified in Circular 229/2016/TT-BTC as follows:
| No. | Criteria | Area I | Area II | Area III |
|---|---|---|---|---|
| 1 | Cars (except for cars with 9 seats or less moving from an area with a low registration fee to an area with a high registration fee) | 150,000 | 150,000 | 150,000 |
| 2 | Re-issuance of vehicle registration without a license plate | 30,000 | 30,000 | 30,000 |
| 3 | Cars with 9 seats or less moving from an area with a low registration fee to an area with a high registration fee | 2,000,000 – 20,000,000 | 1,000,000 | 200,000 |
Transferring Car Ownership from Company to Individual
The cost of transferring car ownership from a company to an individual depends on two cases.
Case 1: Issuance of a new vehicle registration certificate with a license plate
| No. | Criteria | Area I | Area II | Area III |
|---|---|---|---|---|
| 1 | Cars, except for cars with 9 seats or less as per Point 2 of this section | 150,000 – 500,000 | 150,000 | 150,000 |
| 2 | Cars with 9 seats or less | 2,000,000 – 20,000,000 | 1,000,000 | 200,000 |
| 3 | Semi-trailers and trailers registered separately | 100,000 – 20 |
The Ultimate Guide to Car Ownership Transfer: A Step-by-Step Process for 2022
The car ownership transfer procedure as per the latest regulations in 2022 entails a few crucial steps: Notarization of the car sale contract, payment of relevant fees, and submission of the necessary documents.
