Table of Contents
Chapter I: General Provisions
Article 1 This Law is enacted for the purposes of regulating the collection and administration of vehicle and vessel tax, promoting energy conservation and emission reduction, and guiding the rational consumption of vehicles and vessels.
Article 2 Owners or managers of taxable vehicles and vessels within the territory of the People’s Republic of China shall be taxpayers of vehicle and vessel tax and shall pay vehicle and vessel tax in accordance with the provisions of this Law. For the purposes of this Law, “taxable vehicles and vessels” means motor vehicles and vessels that shall be registered in accordance with law and vehicles and vessels that need not be registered but are used within the territory of China.
Article 3 The tax items of vehicle and vessel tax shall be: passenger vehicles, commercial vehicles, trailers, motorcycles, motor vessels, and yachts. The specific scope of tax items shall be determined in accordance with the Table of Tax Items and Tax Amounts of Vehicle and Vessel Tax attached to this Law.
Chapter II: Tax Items and Tax Amounts
Article 4 The tax amount of vehicle and vessel tax shall be determined in accordance with the Table of Tax Items and Tax Amounts of Vehicle and Vessel Tax attached to this Law. The specific applicable tax amount for vehicles shall be determined by the people’s government of each province, autonomous region, or municipality directly under the Central Government within the range of tax amounts prescribed in the Table of Tax Items and Tax Amounts of Vehicle and Vessel Tax, and shall be submitted to the standing committee of the people’s congress at the same level for decision. The specific applicable tax amount for vessels shall be the tax amount prescribed in the Table of Tax Items and Tax Amounts of Vehicle and Vessel Tax.
Article 5 The amount of vehicle and vessel tax payable shall be calculated based on the tax base of the taxable vehicle or vessel multiplied by the applicable tax amount. The tax base for passenger vehicles, commercial vehicles, and motorcycles shall be the number of vehicles or the engine displacement. The tax base for motor vessels and yachts shall be the net tonnage or length.
Article 6 The tax amount for passenger vehicles shall be determined by bracket based on engine displacement. The tax amounts for commercial vehicles, trailers, and motorcycles shall be determined by vehicle type. The tax amount for motor vessels shall be determined by net tonnage bracket. The tax amount for yachts shall be determined by length bracket.
Chapter III: Tax Reductions and Exemptions
Article 7 Vehicle and vessel tax shall be exempted for the following vehicles and vessels: (1) vehicles and vessels used by state organs, the military, and foreign embassies and consulates in China, and representative offices of international organizations in China; (2) vehicles and vessels used for agricultural production such as tractors and agricultural transport vehicles; (3) fishing vessels; and (4) other vehicles and vessels exempted from tax in accordance with laws and administrative regulations.
Article 8 Vehicle and vessel tax may be reduced for the following vehicles: (1) vehicles that use new energy sources such as electricity, hybrid power, and fuel cells; (2) vehicles specially designed for public transportation in urban and rural areas; and (3) other vehicles for which tax reduction is prescribed by laws, administrative regulations, or the State Council.
Article 9 The specific measures for vehicle and vessel tax reductions and exemptions shall be prescribed by the State Council and submitted to the Standing Committee of the National People’s Congress for filing.
Chapter IV: Collection Administration
Article 10 Vehicle and vessel tax shall be levied on an annual basis and paid on an annual basis. The tax liability for vehicle and vessel tax shall arise in the month when the taxable vehicle or vessel is acquired. For taxable vehicles and vessels that shall be registered in accordance with law, the taxpayer shall declare and pay vehicle and vessel tax when going through the registration formalities.
Article 11 The place for payment of vehicle and vessel tax shall be the place where the taxable vehicle or vessel is registered or the domicile of the taxpayer. The insurance institution acting as an agent for withholding and remitting vehicle and vessel tax shall remit the tax withheld to the state treasury in accordance with regulations.
Article 12 Tax authorities and vehicle and vessel registration management departments, insurance regulatory authorities, and insurance institutions shall establish a working mechanism for sharing vehicle and vessel tax-related information. Vehicle and vessel registration management departments shall verify the vehicle and vessel tax payment certificate or tax exemption certificate when handling vehicle and vessel registration.
Chapter V: Supplementary Provisions
Article 13 Where any provisions of this Law are violated, the tax authorities shall pursue liability in accordance with this Law, the Law on the Administration of Tax Collection, and other relevant laws and administrative regulations.
Article 14 The specific measures for the implementation of this Law shall be prescribed by the State Council.
Article 15 This Law shall come into force on January 1, 2012. The Provisional Regulations of the People’s Republic of China on Vehicle and Vessel Tax promulgated by the State Council on December 29, 2006, shall be repealed simultaneously.
Translation note: This is an unofficial English translation for reference purposes. The original Chinese text shall prevail in all legal matters.
