Is Tax Payable on Cars Won in a Lottery?
1 Answers
Tax is payable on cars won in a lottery. Relevant Regulation 1: According to Article 1 of the Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax, units and individuals who purchase vehicles (hereinafter referred to as taxable vehicles) specified in these Regulations within the territory of the People's Republic of China are taxpayers of vehicle purchase tax and shall pay vehicle purchase tax in accordance with these Regulations. The term 'purchase' as mentioned in Article 1 of these Regulations includes buying, importing, self-producing, receiving as a gift, winning as a prize, or obtaining taxable vehicles by other means for personal use. The term 'units' as mentioned in Article 1 of these Regulations includes state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, foreign-invested enterprises, foreign enterprises, and other enterprises, as well as public institutions, social organizations, state organs, military units, and other units; the term 'individuals' includes self-employed individuals and other individuals. The formula for calculating the vehicle purchase tax payable is: Tax Payable = Taxable Price × Tax Rate. Relevant Regulation 2: According to the relevant provisions of the Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax, the taxable price of vehicle purchase tax is determined according to the following provisions under different circumstances. For taxable vehicles purchased by taxpayers for personal use, the taxable price is the total price and additional fees paid by the taxpayer to the seller for the purchase of the taxable vehicle, excluding value-added tax. The formula for calculating the taxable price of imported taxable vehicles for personal use is: Taxable Price = Customs Duty Paid Price + Customs Duty + Consumption Tax. For taxable vehicles self-produced, received as a gift, won as a prize, or obtained by other means for personal use, the taxable price shall be assessed by the competent tax authority with reference to the minimum taxable price stipulated in Article 7 of these Regulations.
