When Should the Purchase Tax Be Paid for a New Car?

[FernandoLee]

The purchase tax for a new car must be paid within 60 days at the latest. According to Article 13 of the Provisional Regulations on Vehicle Purchase Tax of the People's Republic of China, taxpayers who purchase taxable vehicles for personal use must declare and pay the tax within 60 days from the date of purchase, and the vehicle purchase tax must be paid in one lump sum. This means that car owners must declare the tax within 60 days of purchasing the vehicle. If the vehicle purchased is an imported car, the declaration must also be made within 60 days of purchase. The payment of the vehicle purchase tax is a one-time lump sum, with the following relevant details: 1. Policy: The new policy states that from January 1, 2017, to December 31, 2017, passenger vehicles with a displacement of 1.6 liters or below are subject to a vehicle purchase tax rate of 7.5%. Starting from January 1, 2018, the statutory tax rate of 10% for vehicle purchase tax will be reinstated. 2. Vehicle purchase tax should be paid before license plate registration: It is not necessary to wait until the license plate is suitable for registration to pay the tax because the vehicle purchase tax does not require a license plate number. If the vehicle purchase tax is not paid within the prescribed period, a late fee of 0.05% of the overdue tax will be charged daily from the date of default.