With the support of some lawmakers, the luxury tax exemption for the yacht industry failed in the preliminary examination. In other words, wealthy businessmen who buy yachts will still have to pay tax if they maintain the current system.
So?
There are two main taxes to buy domestic yachts, one is the purchase tax (value-added tax), one is 10% tax.
According to the provisions of Chapter 8903 of China Import and Export Tariff 2007, the tariff rate of yachts is 30%;
Ministry of Finance State Administration of Taxation on the adjustment and improvement of consumption tax.
Policy Notice Finance and Taxation [2006]33 document: yacht consumption tax rate is 10%;
The value-added tax rate for yacht imports is 17%.
The relevant taxes paid by imported yachts are: tariff = customs value/(1-10%) * 30% consumption tax = customs value/(1-10%) * 10% value-added tax = [customs value/(1-10%) + customs duty] * 17%.
Customs value refers to the value determined by the appraisal after the customs has examined and assessed the import and export goods according to relevant regulations. It is the basis for the customs to collect customs duties.
