How to Correctly Calculate Vehicle Tax?

[DelLawson]

Vehicle Purchase Tax is a tax levied on entities and individuals who purchase designated vehicles within the country, evolving from the Vehicle Purchase Surcharge. The "People's Republic of China Vehicle Purchase Tax Law" has been in effect since July 1, 2019. The formula for calculating the payable tax amount is: Payable Tax Amount = Taxable Price × 10%. For self-use taxable vehicles purchased, the taxable price is the total amount actually paid by the taxpayer to the seller, excluding VAT. For imported self-use taxable vehicles, the taxable price is the customs duty-paid price plus customs duty and consumption tax. For self-produced and self-use taxable vehicles, the taxable price is determined based on the selling price of similar taxable vehicles produced by the taxpayer, excluding VAT. For taxable vehicles obtained through donation, awards, or other means, the taxable price is determined based on the price stated in the relevant documents at the time of acquisition, excluding VAT.