Within the territory of China, the owners or managers of vehicles and vessels (hereinafter referred to as vehicles and vessels) shall be the taxpayers of vehicle and vessel tax.

(1)	Motor vehicles and vessels that should be registered with the vehicle and vessel registration administration department in accordance with law;
(2)	Motor vehicles and vessels that are not required to be registered with the vehicle and vessel registration administration department in accordance with law, or to drive or operate in the internal place.

Tax Item		Tax Unit	Notes
Passenger Vehicles (classified by the engine displacement)		Per Vehicle	Authorised number of passengers ≤9.
Commercial Vehicles	Buses	Per Vehicle	Authorised number of passengers ＞9 but ＜20 (including trolley cars)
	Large Coaches	Curb Weight (per ton)	Including semi-tractor trucks and trailer, passenger-cargo vehicle, three-wheel vehicle and low-speed truck, etc.
Trailers		Curb Weight (per ton)	Calculated based on 50% of truck tax.
Other Vehicles	Special-purpose Vehicles	Curb Weight (per ton)	Except tractors
	Special-purpose wheeled model vehicles
Motor Vehicles		Per Vehicle
Vessels	Motorised Vessels	Per ton	The tax amount of tugs and non-motorised barges are 50% of that of motorised vessels.
	Yacht	Full length	-

The applicable amount of vehicle and vessel tax shall be in accordance with the schedule of vehicle and vessel tax items. The specific applicable tax on vehicles and vessels shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the central government within the prescribed range of tax, or by the state council within the prescribed range of tax.

Statutory Reductions and Exemptions:

(1)	Fishing vessels for fishery and cultivation;
(2)	Special vehicles and vessels for army and armed police forces
(3)	Vehicles and vessels used by police;
(4)	Vehicles and vessels of the foreign embassies and consulates of in China, the representative institutions of international organizations in China and their personnel, which shall be exempted from tax in accordance with the relevant provisions of law;
(5)	50% reduction of energy-saving vehicles (passenger vehicles and commercial vehicles); exemption of vehicle and vessel tax on new energy vehicles and vessels.
(6)	Provincial-level people’s governments may periodically reduce or exempt vehicle and vessel taxes on public transport vehicles, motorbikes, three-wheel vehicles and low-speed trucks owned by rural residents and mainly used in rural areas;

Specific Reductions and Exemptions:

(1)	Vehicles and vessels that are approved to enter in Hong Kong Special Administrative Region, Macau Special Administrative Region, and Taiwan temporarily are not subject to vehicle and vessel tax.
(2)	Motorised vessels that pay vessel tonnage tax in accordance with regulations are exempted for 5 years from the date of implementation of the vehicle and vessel tax law.
(3)	Vehicles and vessels that are not required to drive or operate in airports, ports, and railway stations registered with the Vehicle and Vessel Registration Management Department in accordance with the law are exempted from vehicle and vessel tax for 5 years from the date of implementation of the Vehicle and Vessel Tax Law;
(4)	Vehicles and vessels that have difficulty for paying taxes due to severe natural disasters such as earthquakes, floods, and other special reasons may need to reduce or exempt vehicle and vessel taxes within a certain period of tim