Vehicle purchase tax law seeks opinions to be changed to 4 objects

The reporter learned from the Ministry of Finance on the 7th that the Ministry of Finance and the State Administration of Taxation drafted the "People's Republic of China Vehicle Purchase Tax Law (Draft for Soliciting Opinions)" and now publicly solicit opinions from the public.

The "Provisional Regulations of the People's Republic of China on Vehicle Purchase Taxes" promulgated by the State Council in October 2000 stipulates that the vehicle purchase tax shall be taxed on five categories: automobiles, motorcycles, trams, trailers, and agricultural vehicles. According to the state-redeployed vehicle technical standards, trolley buses in agricultural vehicles and trams have been integrated into automobile management. In order to be consistent with the current technical standards for motor vehicles, the “Draft for Comment” changed the object of taxation for vehicle purchase tax to four categories: automobiles, motorcycles, trailers, and trams.

According to the different circumstances of the purchase of taxable vehicles, the “Draft for Comments” stipulates four methods for determining the taxation rate for vehicle purchase tax: First, the taxpayer purchases the taxable price of the taxable vehicle for own use and pays the taxpayer for the purchase of the taxable vehicle. The total price and out-of-the-money expenses to the seller do not include the value-added tax; the second is the taxable price of taxable vehicles imported by the taxpayer, which is the sum of the duty-paid price of the taxable vehicle plus the tariff and consumption tax; Third, the taxable price of the self-produced taxable vehicle used by the taxpayer is determined according to the sales price of the taxable vehicle of the same type produced by the taxpayer, excluding the value-added tax. Fourth, the taxpayer is given, awarded or obtained in other ways. The taxable price of the taxable vehicle for own use shall be the price stated in the relevant certificate at the time of purchase of the taxable vehicle, excluding VAT.

Compared with the "Regulations," the "Draft for Comment" has removed the provisions of the State Administration of Taxation on the minimum taxable prices for taxable vehicles. The main reasons are: At present, the vehicle sales market is highly concentrated, the price is open and transparent, and the invoice management is strict. Taxpayers are less likely to falsely report taxable prices. The risk of vehicle purchase tax collection and control is controllable. In order to avoid the difference between the minimum taxable price stipulated by the tax authority and the actual purchase price of the taxpayer, the burden on the taxpayer will be increased and the contradiction between the taxpayers will be reduced, and the minimum taxable price will no longer be set. At the same time, in order to prevent taxpayers from falsely reporting taxation prices and evading tax evasion, the “Draft for Soliciting Opinions” added that “the taxable vehicle’s taxable price declared by the taxpayer is inconsistent with reality, and the tax authorities shall collect tax The "Management Law" and related regulations verify the amount of tax payable".

The "Draft for Comment" stipulates that the tax rate for vehicle purchase tax is 10%, that is, it maintains the current provisions of the "Regulations" and ensures the smooth implementation of the tax law.

The “Consultation Draft” continues the current provisions of the “Regulations” and specifies four tax exemptions: First, based on international practice and reciprocity, foreign embassies, consulates, and international organizations should be exempted from taxation in accordance with the law. China’s self-employed vehicles are exempted from taxation by Chinese agencies and related personnel; secondly, they are tax-exempted for supporting the national defense construction, and the vehicles included in the equipment ordering plan for the armed forces and the armed police force; and thirdly, the non-transporting vehicles with fixed devices are mainly used for building construction, etc. Special operations do not have the main function of carrying people or carrying cargo. Therefore, non-transport vehicles with fixed installations are exempted from taxation. Fourth, the State Council approves tax exemptions or tax reductions. Provisions such as eligible new-energy vehicles, public steam vehicles, and other temporary purchase tax policies for vehicle purchases may continue to be authorized by the State Council.

In addition, the “Draft for Soliciting Opinions” added the “If taxpayers return vehicles for which the vehicle purchase tax has been collected to the vehicle production and sales enterprises, they can apply to the competent tax authorities for the refund of the taxes on vehicle purchase tax that has been paid”, which is beneficial to the law. Manage tax refunds.