What Is Car Taxation?

Automobile purchase tax is a tax levied on units and individuals who purchase prescribed vehicles in China. It is derived from the vehicle purchase surcharge. The basic norms of the current automobile purchase tax law are the Interim Regulations of the People's Republic of China on Vehicle Purchase Tax, which came into effect on January 1, 2001.

Car purchase tax

Car purchase tax refers to the tax paid when purchasing a car. The purchase tax amount is 10% of the sales price of the car (excluding the tax price). (Or obtained by other means and for personal use) Units and individuals of taxable vehicles are subject to a 10% tax rate. In addition to automobiles, motorcycles, trams, trailers, and agricultural transport vehicles are also subject to vehicle purchase tax.

The formula for calculating the taxable amount is: taxable amount = taxable price × tax rate (if it is lower than the minimum taxable price promulgated by the State Administration of Taxation, it is levied at the lowest taxable price prescribed by the State Administration of Taxation).

Calculation of self-use vehicle tax rate: out-of-price expenses × 10%

Calculation of import vehicle tax rate: tax calculation price = (tariff value + tariff) ÷ (1- consumption tax rate);

The purchase tax is 10% of the sales price of the car (excluding tax). The formula is:

New car purchase tax = car purchase price (including tax price) /1.13*10%.

According to the relevant regulations of the Ministry of Finance Finance and Accounting [2000] No. 18:

(I) Owner ID

1. Mainland residents, provide Mainland "resident ID card" (including proof of residence, temporary residence) or "resident

1. For vehicles that have already paid the vehicle purchase tax, if the vehicle needs to be returned to the vehicle manufacturer due to quality problems, the manufacturer can apply for the refund based on the vehicle return certificate; the tax refund must be returned to the original tax payment certificate of the vehicle purchase tax; Tax refund will not be given to the original tax payment certificate of the car.

2. For vehicles that have already paid the car purchase tax, if the vehicle manufacturer needs to change the car for the owner due to quality problems, the car purchase tax change procedure can be handled with the manufacturer's replacement certificate and the new car invoice, and returned to the original car If the original tax payment certificate of the vehicle purchase tax cannot be returned, the vehicle purchase tax change procedure shall not be processed.

After the replacement of a new car, when the taxable price of the new car is equal to the original car's

On July 9, 2014, Premier Li Keqiang of the State Council hosted an executive meeting of the State Council to deploy and accelerate the development of the modern insurance service industry, decided to exempt new energy vehicle purchase tax, focus on promoting simplified administration and decentralization, and passed relevant draft amendments to laws and administrative regulations Decide. ^[1]

The Ministry of Finance and State Administration of Taxation reported on November 28, 2014 that, after research and approval by the State Council executive meeting, China has adjusted the consumption tax on some products such as refined oil products since November 29. Among them, the unit tax on gasoline consumption tax has increased by 0.12 yuan / liter The diesel consumption tax was increased by 0.14 yuan / liter. This is the first time that the refined oil consumption tax has been adjusted since the reform of the refined oil tax in 2009.

This consumption tax adjustment is a set of combination punches. In addition to moderately increasing the consumption tax on gasoline, diesel and refined oil such as naphtha, solvent oil, lubricants, fuel oil, aviation kerosene, etc., it also includes the cancellation of the cylinder capacity of 250 ml (excluding ) Consumption tax on small-displacement motorcycles, car tires, and alcohol; cancellation of consumption tax on leaded gasoline for vehicles; uniform consumption tax on unleaded gasoline; cessation of collection of refined oil price adjustment funds, etc., implemented on December 1. ^[3]