Vehicle Purchase Tax Law of the People's Republic of China

(Effective from the date of the founding of the People's Republic of China)

Article 1: Any unit or individual that purchases a car, tram, car trailer, or motorcycle with a displacement of more than 150 ml (hereinafter referred to as taxable vehicles) within the territory of the People's Republic of China shall be a taxpayer of vehicle purchase tax and shall pay vehicle purchase tax in accordance with the provisions of this Law.

Article 2: Purchase as referred to in this Law refers to the act of acquiring and using a taxable vehicle by purchasing, importing, self-producing, receiving a gift, winning a prize or other means.

Article 3: Vehicle purchase tax shall be levied once and for all. No vehicle purchase tax shall be levied on the purchase of a vehicle that has been levied vehicle purchase tax.

Article 4: The tax rate of vehicle purchase tax is 10%.

Article 5: The taxable amount of vehicle purchase tax shall be calculated by multiplying the taxable price of the taxable vehicle by the tax rate.

Article 6 The taxable price of taxable vehicles shall be determined in accordance with the following provisions:

(i) The taxable price of taxable vehicles purchased by taxpayers for their own use shall be the total price actually paid by the taxpayer to the seller, excluding value-added tax;

(ii) The taxable price of taxable vehicles imported by taxpayers for their own use shall be the duty-paid price plus tariffs and consumption taxes;

(iii) The taxable price of taxable vehicles produced by taxpayers for their own use shall be determined in accordance with the sales price of similar taxable vehicles produced by the taxpayers, excluding value-added tax;

(iv) The taxable price of taxable vehicles obtained by taxpayers for their own use through gifts, awards or other means shall be determined in accordance with the price stated in the relevant vouchers when the taxable vehicles were purchased, excluding value-added tax.

Article 7 If the taxable price of taxable vehicles declared by taxpayers is obviously too low and there is no justifiable reason, the tax authorities shall determine the tax payable in accordance with the provisions of the Tax Collection and Management Law of the People's Republic of China.

Article 8 Where a taxpayer settles the price of a taxable vehicle in foreign exchange, the tax shall be calculated and paid in RMB converted into RMB according to the RMB midpoint exchange rate on the date of tax declaration.

Article 9 The following vehicles are exempt from vehicle purchase tax:

(i) Vehicles used by foreign embassies, consulates and international organizations in China and their relevant personnel that should be exempted from tax in accordance with the law;

(ii) Vehicles included in the equipment ordering plan of the People's Liberation Army and the People's Armed Police Force;

(iii) National comprehensive firefighting and rescue vehicles with emergency rescue special license plates;

(iv) Non-transportation special operation vehicles with fixed devices;

(v) Public buses and electric vehicles purchased by urban public transportation enterprises.

According to the needs of national economic and social development, the State Council may stipulate the reduction or other exemption of vehicle purchase tax and report it to the Standing Committee of the National People's Congress for record.

Article 10 Vehicle purchase tax shall be collected by the tax authorities.

Article 11. When a taxpayer purchases a taxable vehicle, he shall declare and pay the vehicle purchase tax to the competent tax authority at the place where the vehicle is registered; when a taxpayer purchases a taxable vehicle that does not require vehicle registration, he shall declare and pay the vehicle purchase tax to the competent tax authority at the place where the taxpayer is located.

Article 12. The tax obligation of vehicle purchase tax shall occur on the day when the taxpayer purchases the taxable vehicle. The taxpayer shall declare and pay the vehicle purchase tax within 60 days from the date when the tax obligation occurs.

Article 13. The taxpayer shall pay the vehicle purchase tax before registering the vehicle with the traffic management department of the public security organ.

When the traffic management department of the public security organ registers the vehicle, it shall verify the vehicle information applied for registration by the taxpayer based on the tax payment or tax exemption electronic information of the taxable vehicle provided by the tax authority, and register the vehicle in accordance with the law after the verification is correct.

Article 14. If a tax-exempt or tax-reduced vehicle no longer falls within the scope of tax exemption or tax reduction due to transfer, change of use, etc., the taxpayer shall pay the vehicle purchase tax before registering the vehicle transfer or change of registration. The taxable price is based on the taxable price determined when the tax exemption or tax reduction vehicle first applies for tax declaration, and 10% is deducted every year.

Article 15 If a taxpayer returns a vehicle that has been subject to vehicle purchase tax to a vehicle manufacturer or seller, he or she may apply to the competent tax authority for a refund of the vehicle purchase tax. The refund amount is based on the tax paid, and 10% is deducted every year from the date of tax payment to the date of application for refund.

Article 16 The tax authorities and the public security, commerce, customs, industry and information technology departments shall establish a mechanism for sharing information and coordinating work on taxable vehicles, and exchange taxable vehicle and tax information in a timely manner.

Article 17 The collection and management of vehicle purchase tax shall be implemented in accordance with the provisions of this Law and the "Tax Collection and Management Law of the People's Republic of China".

Article 18 If taxpayers, tax authorities and their staff violate the provisions of this Law, they shall be held legally liable in accordance with the "Tax Collection and Management Law of the People's Republic of China" and relevant laws and regulations.

Article 19 This Law shall take effect on the date of the founding of the People's Republic of China.