Laws of the People's Republic of China

No.482

The Interim Regulations of the People's Republic of China Concerning Vehicle and Vessel Tax, have been adopted at the 162nd executive meeting of the State Council on December 27, 2006. They are hereby promulgated and shall go into effect as of January 1, 2007. Premier of the State Council Wen Jiabao

December 29, 2006

Interim Rules of the People's Republic of China Concerning Vehicle and Vessel Tax

Article 1

Within the territory of the People's Republic of China, the owners or managers of vehicles and vessels shall be the taxpayers of vehicle and vessel tax and shall pay vehicle and vessel tax according to the provisions of the present Rules.

The term "vehicle and vessel" as mentioned in the present Rules means the vehicles and vessels that shall be registered at the administrative departments of vehicle and vessel in accordance with law.

Article 2

The tax amount applicable to vessel and vehicle shall be decided in light of the Schedule of the Tax Items and Tax Amount of Vehicle and Vessel Tax attached hereto.

The finance department and the taxation department under the State Council shall divide sub-items in light of the actualities and determine the tax amount range of each vehicle sub-item and the specific tax amount applicable to vessels within the tax item scope and tax amount range as specified in the Schedule of the Tax Items and Tax Amount of Vehicle and Vessel Tax. The specific tax amount applicable to vehicles shall be decided by the people's governments of the provinces, autonomous regions or municipalities directly under the Central Government within the specified tax amount under each sub-item.

Article 3

The vehicle and vessel tax shall be exempted from the following vehicles and vessels:

(1)

non-motor vehicles and vessels (exclusive of non-motor barges);

(2)

tractors;

(3)

fishing vessels for fishery and cultivation;

(4)

special vehicles and vessels for army and armed police;

(5)

vehicles and vessels used by police;

(6)

vessels whose tonnage duties have been paid according to the related provisions; and

(7)

vehicles and vessels of the embassies and consulates of foreign countries in China, institutions of international organizations in China and their related personnel, which shall be exempted from tax as prescribed in the related laws of China or the international treaties concluded or acceded to by China

Article 4

The people's governments of the provinces, autonomous regions, or municipalities directly under the Central Government may regularly grant tax deduction or exemption to urban and rural vehicles and vessels used for public traffic in light of the actualities.

Article 5

Vehicle and vessel tax shall be levied by local tax authorities.

Article 6

The payment place for vehicle and vessel tax shall be decided by the people's governments of the provinces, autonomous regions, or municipalities directly under the Central Government in accordance with the actualities.

In case a vehicle or vessel is used in more than one province, autonomous region, or municipality directly under the Central Government, the payment place shall be the register place of such vehicle or vessel.

Article 7

The time when the obligation arises for a taxpayer to pay vehicle and vessel tax shall be the month as recorded in the registration certificate for vehicle or vessel or driving license as issued by the administrative department of vehicle and vessel.

Article 8

Vehicle and vessel tax shall be declared and paid on an annual basis. The specific declaration period shall be decided by the people's governments of all provinces, autonomous regions, or municipalities directly under the Central Government.

Article 9

In case the owner or manager of a vehicle or vessel fails to pay vehicle and vessel tax, the user shall pay vehicle and vessel tax in stead.

Article 10

An insurance institution, which undertakes the business of compulsory traffic accident liability insurance for motor vehicles, shall be the withholding agent of the tax on motor vehicles and vessels, and shall withhold vehicle and vessel tax in accordance with law.

The standards for the withholding commission charge paid to a withholding agent by the tax authorities shall be determined by the finance department and the taxation department under the State Council.

Article 11

When a withholding agent of the tax on motor vehicles and vessels withholds the vehicle and vessel tax in accordance with law, the taxpayer may not reject.

Article 12

The administrative departments of vehicle and vessel of each level shall, in terms of the providing of relevant information on vehicle and vessel administration, assist local tax authorities to intensify the administration of vehicle and vessel tax collection.

Article 13

The administration of collection of vehicle and vessel tax shall be conducted according to the Law of the People's Republic of China on the Administration of Tax Collection and the provisions in the present Regulations.

Article 14

The present Regulations shall go into effect as of January 1, 2007. The Interim Regulations on Vehicle and Vessel License Plate Tax promulgated by the former Administrative Council on September 13, 1951 and the Interim Regulations of the People's Republic of China on Vehicle and Vessel Usage Tax as promulgated by the State Council on September 15, 1986 shall be concurrently repealed.

Annex:

Schedule of the Tax Items and Tax Amount of Vehicle and Vessel Tax

　　Footnote: The tax unit and annual tax amount of special working vehicles and special terrain vehicles of wheeled model shall be decided by the finance department and taxation department under the State Council in light of this Schedule by analogy.