October 24 2022

China Continues Tax Exemptions on NEVs Purchases through 2023

Source: Announcement of the State Taxation Administration

The Ministry of Finance ("MOF") released on September 26, 2022 the Announcement on Continuing Tax Exemptions on Purchases of New Energy Vehicles, which was jointly formulated by the MOF, the State Taxation Administration ("STA") and the Ministry of Industry and Information Technology ("MIIT").

Purchases of new energy vehicles ("NEVs") during the period from January 1, 2023 to December 31, 2023 will be exempted from purchase tax. NEVs exempted from purchase tax would be subject to management based on the List of NEV Models Exempted from Purchase Tax, which was released by the MIIT and the STA and has been updated to its 58th batch, according to the Announcement, which also continues tax exemptions on purchases of NEVs that have been included in the List before December 31, 2022, and requires handling of other matters in accordance with No.21 Announcement in 2020 and No.13 Announcement in 2021.