What Displacement of Motorcycles is Exempt from Purchase Tax?

[SanWillow]

Motorcycles with a displacement of 150cc are exempt from purchase tax. Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China, which evolved from the vehicle purchase surcharge. Regulations on purchase tax exemption: The obligation to pay vehicle purchase tax arises on the day the taxpayer purchases the taxable vehicle. According to the "Vehicle Purchase Tax Law of the People's Republic of China" implemented from July 1, 2019, motorcycles with a displacement of 150 milliliters (inclusive) or less are not within the scope of vehicle purchase tax collection and therefore are exempt from vehicle purchase tax. Purchase tax calculation method: According to the "Vehicle Purchase Tax Law of the People's Republic of China", the domestic vehicle purchase tax rate is 10%. The calculation formula is: Tax payable = Taxable price × Tax rate (if it is lower than the minimum taxable price issued by the State Taxation Administration, the minimum taxable price stipulated by the State Taxation Administration shall be used).