What is the tax rate for cars?
1 Answers
There are unified national regulations on this matter. The vehicle purchase tax required when buying a car is 10%. Below is the relevant information: 1. Vehicle purchase tax: A tax levied on units and individuals who purchase specified vehicles within China. It evolved from the vehicle purchase surcharge. The current basic regulations of the vehicle purchase tax law are the "Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax" implemented from January 1, 2001. 2. Purchase tax: It is not calculated based on the invoice price or the suggested retail price, but rather on the price in the national tax system. The calculation is done by dividing the invoice amount by 1.16 and multiplying by 10%. There is also a verified price in the system; if the invoice amount is lower than the verified amount, the verified amount is used for calculation.