| General Questions |
| Q.1 | Before registration and licensing of all motor vehicles to be used on roads in Hong Kong, which government department should the first registration tax be paid at? |
| Answer: | All motor vehicles to be used on roads in Hong Kong are subject to the first registration tax payable at the Transport Department before registration and licensing. |
| Q.2 | Which department is responsible for the assessment of the Published Retail Price? |
| Answer: | Customs and Excise Department. |
| Q.3 | What is the basis for the calculation of First Registration Tax payable? |
| Answer: | The First Registration Tax payable is calculated on the basis of published retail price of a motor vehicle and the first registration tax rate. |
| Q.4 | In order to check the particulars of the motor vehicle and its approved retail price, what should the vehicle buyer request the motor vehicle distributor to provide for verification? |
| Answer: | Vehicle buyer shall request the registered motor vehicle distributor for the corresponding Published Retail Price list so as to check the particulars of the motor vehicle and its approved retail price. |
| Q.5 | Does a motor vehicle owner need to declare to the Transport Department for any accessory fitted to the vehicle and/or taxable warranty obtained for the vehicle within a certain period after its first registration? |
| Answer: | If there is any accessory fitted to the vehicle and/or taxable warranty obtained for the vehicle within 6 months after its first registration, the vehicle owner should submit a duly completed application form “Declaration of Fitting of Accessories to and/or Obtaining of Taxable Warranties for a Registered Motor Vehicle within 6 months after First Registration” (TD469) to the Transport Department within 5 working days after the fitting of the accessory or entering into the contract for the taxable warranty. |
| Q.6 | What should a potential motor vehicle owner do if there is any doubt about the retail price of vehicle and the trade practices? |
| Answer: | Potential motor vehicle owner should report to the Customs in the following circumstances:
i. when a distributor sells a new motor vehicle at a price higher than the approved Published Retail Price in the name of other fee;
ii. when a registered distributor fails to publish in writing a retail price of motor vehicle offered for sale or distributed by him; or
iii. when the information such as the motor vehicle model, taxable value and the first registration tax paid shown on the Vehicle Registration Document do not match with those listed on the sales and purchase agreement.
|
| Q.7 | Will a potential motor vehicle owner be prosecuted if he declares a false retail price in order to pay less tax? |
| Answer: | Yes. The offender is liable on conviction to a maximum fine of $500,000 and to imprisonment for 12 months. |
| Q.8 | What are the consequences that a potential motor vehicle owner would bear, if he agrees to purchase a motor vehicle at a price higher than the Published Retail Price approved by the Customs in the name of other fee? |
| Answer: | If a potential motor vehicle owner agreed to purchase a motor vehicle at a price higher than the Published Retail Price approved by the Customs in the name of other fee, and fails to declare the full vehicle selling price to Transport Department, he may contravene the Motor Vehicles (First Registration Tax) Ordinance when applying for first registration for the motor vehicle. Besides, if the vehicle price is doubtful, Transport Department may refer the application to the Customs for investigation that may delay the processing of the application. In addition, with an understated taxable value of vehicle, the selling price may be higher than the aggregate of the taxable value of and first registration tax paid for the vehicle upon transfer of ownership, the vehicle owner therefore has to pay for the extra first registration tax to Transport Department before the transfer of ownership is effected. It may delay the processing of the application for licensing. |
| Q.9 | Is it necessary to pay the First Registration Tax for importation of a second hand vehicle into Hong Kong? |
| Answer: | All motor vehicles to be used on roads in Hong Kong, whether brand new or used, are subject to the first registration tax for motor vehicles payable at the Transport Department before registration and licensing. |
| Q.10 | What is the tax rate of First Registration Tax? |
| Answer: |
| Class of Motor Vehicle | Rate of Tax |
| Private cars | |
| a. the first $150,000 of taxable value | 46% |
| b. on the next $150,000 | 86% |
| c. on the next $200,000 | 115% |
| d. on the remainder | 132% |
** The above first registration tax rate is the current tax rate applicable to private car, which has been effective since 11:00 a.m. on 24 February 2021. Buyers should check the latest tax rate for private cars or the tax rates applicable to other vehicle classes at the Transport Department website (https://www.td.gov.hk). |
| Q.11 | What is the rate of First Registration Tax of motor vehicle for a disabled person? |
| Answer: | A disabled person is not liable to pay the first registration tax on the first $300,000 of the taxable value of a private car, motorcycle or motor-tricycle, on the condition that he has not registered for any exemption of first registration tax within the previous 5 years. |
| Q.12 | Is there any First Registration Tax required for importation of a classic vehicle? |
| Answer: | In accordance with the Motor Vehicles (First Registration Tax) Ordinance, all motor vehicles for use in Hong Kong irrespective of the age are subject to the payment of first registration tax. Thus, a classic car is not exempt from First Registration Tax. |
| Q.13 | For importing a vehicle which was previously registered in Hong Kong, then exported to other country/region, is it necessary to pay for the First Registration Tax? |
| Answer: | If the car was first registered in Hong Kong and was exported later, the car would not be taxed again for the first registration if it is re-imported. However, vehicle owner must furnish previous registration documents or other records as proof to Transport Department.
For further information, please contact the Transport Department.
|
| Q.14 | What kind of application and Customs duty is required for importation of a vehicle which is not intended for registration for use in Hong Kong? |
| Answer: | No Customs duty or Import/Export levy will be charged for importation of vehicle in Hong Kong. If the vehicle is not for use in Hong Kong (e.g. re-export, scrapping etc.), submission of Import Return (CED336) to the Customs is not necessary. |
| Q.15 | Within how many days of commencing to carry on business of importing/distributing or retailing motor vehicles for use in Hong Kong should the person register as an importer/distributor? |
| Answer: | A person who carries on business of importing, distributing or retailing motor vehicles for use in Hong Kong either on his own behalf or for a distributor for sale shall within 30 days of commencing that business register as an importer and/or distributor respectively. |
| Q.16 | Who should be the applicant for registration of importer or distributor? |
| Answer: | To qualify for the application, the applicant should hold the position of a proprietor or director of a company, otherwise, a written authorization from the director or board of directors of the company is required. |
| Q.17 | For any change of registered information (such as business address, vehicle make(s) he deals with or cessation of business), within how many days shall the registered company give notice to the Customs? |
| Answer: | If a registered importer or a registered distributor-
(a) changes the place at which he carries on business;
(b) adds to or deletes the makes of motor vehicles he deals with; or
(c) ceases to carry on business,
he shall give notice of the change or cessation within 14 days of the change or cessation to the Customs.
|
| Q.18 | What should the applicant do, if he disagrees with the assessed price of his imported motor vehicle? |
| Answer: |
If the assessed price is not accepted by the applicant, upon receipt of the Approved Published Retail Price List / Notification of Motor Vehicle Provisional Taxable Value, he may request for re-assessment with a written representation to the Customs with justifications. There is no limit to the number of applications for re-assessment. After considering the representation, the Customs will conduct re-assessment within 14 days. According to section 11 of the Motor Vehicles (First Registration Tax) Ordinance, any person who is aggrieved by any decision of the Customs made in respect of him under this Ordinance may, within 28 days from the date when he was informed of the decision, appeal to the Administrative Appeals Board.
|
| Q.19 | According to the Motor Vehicles (First Registration Tax) Ordinance, "market value" in relation to any motor vehicle, accessory or taxable warranty, means the price that the motor vehicle, accessory or taxable warranty would fetch in the open market between a buyer and a seller independent of each other, dealing at arms length. Where is the open market referring to? |
| Answer: |
It is referring to the open market in Hong Kong.
|
| Questions on Published Retail Price (PRP) |
| Q.24 | The calculation of the First Registration Tax is subject to the retail price of a vehicle. What would be included in the retail price? Does it include vehicle insurance? |
| Answer: | The retail price of a motor vehicle is the aggregate of A1, A2, B and C prices stated on the Published Retail Price list.
A1 - the retail price of standard accessories and warranties (e.g. the installed accessories and manufacturer's / mandatory warranties (if applicable));
A2 - the retail price of optional treatments (e.g. optional painting);
B - the retail price of optional accessories (e.g. optional audio equipment); and
C - the retail price of optional warranties (e.g. optional warranty for 24 months)
(A2,B and C are options given to motor vehicle owners)
Vehicle insurance is not included.
|
| Q.25 | How many days before the sale of vehicle should the distributor submit the proposed retail price list to the Customs and Excise Department for assessment and approval? |
| Answer: | A registered distributor shall deliver a copy of his retail price list intended for publication to the Customs not less than 7 days before publication and shall give the Customs not less than 5 working days' notice of an intended change in the Published Retail Price of a model of a motor vehicle. |
| Q.26 | What is the proper channel for making public enquiries on the Published Retail Price list provided? |
| Answer: | For any enquiries on the Published Retail Price list, he shall approach the Hong Kong Licensing Office of the Transport Department in person for relevant copies, or visit the Motor Vehicles First Registration Tax System through the website of the Customs for checking the latest Published Retail Prices. |
| Q.27 | When conducting search of approved Published Retail Price list through the First Registration Tax System, only the vehicles of relevant models can be found. How could I know the price of a particular Published Retail Price list? |
| Answer: | The approved Published Retail Price list search will display the most recent approved PRP(s) for the relevant models/model codes. To search for the price of a particular Published Retail Price list, please specify the model code, otherwise, the current highest published retail price of the same model will be shown. |
| Q.28 | Is it necessary to bring along the approved Published Retail Price to the Transport Department for vehicle first registration purpose? |
| Answer: | Traders may produce to the Transport Department the printed copy of approved Published Retail Price downloaded from the First Registration Tax System for vehicle first registration. |
| Q.29 | When a registered distributor and a buyer reach a motor vehicle sales agreement, what are the documents required for applying for a provisional taxable value? |
| Answer: | Upon a registered distributor and a buyer reach a motor vehicle sales agreement, where the selling price is the same as the approved Published Retail Price, the distributor can apply for ‘Notification of Motor Vehicle Provisional Value’, from the Customs for the assessment on the provisional taxable value of the vehicle. |
| Motor Vehicles First Registration Tax System and other Technical Questions |
| Q.30 | What is Motor Vehicles First Registration Tax System? |
| Answer: | Motor Vehicles First Registration Tax System is a 24-hour system to facilitate the electronic submission of Import Return and Published Retail Price List application required under Motor Vehicles (First Registration Tax) Ordinance, Cap. 330 |
| Q.31 | What service could the First Registration Tax System provide to the public? |
| Answer: | The First Registration Tax System allows the public to check the Publish Retail Price lists. |
| Q.32 | Am I required to register before using the Motor Vehicles First Registration Tax System? |
| Answer: | For enquiry on the Published Retail Price through the System, no registration is required.
For importers/distributors who wish to submit Import Return and application for Published Retail Price, they should be registered as importers/distributors with the Customs within 30 days of the commencement of their business. Upon submission of e-Certificate (Organisational) details, registered importer/distributor will then be allocated with a user account to gain access to the Motor Vehicles First Registration Tax System.
|
| Q.33 | For importation of a motor vehicle for own use and not for sale, can the application be made through the Motor Vehicles First Registration Tax System? |
| Answer: | Any persons importing motor vehicles for their own use and not for sale are not required to register as motor vehicle importers. Submission of Import Returns and other supporting documents to the Customs can be made through the Motor Vehicles First Registration Tax System within 30 days of the importation of the motor vehicles. |
| Q.34 | Are there any principle account and sub-accounts allocated for a registered motor vehicle importer/distributor to access the Motor Vehicles First Registration Tax System? |
| Answer: | Yes. Each registered motor vehicle importer/distributor is allocated with a principle account. Each principle account holder can create ten sub-accounts to cater for their business need. |
| Q.35 | Can the Motor Vehicles First Registration Tax System give instant notification of submission/ application result to the applicant? |
| Answer: | Applicant would receive notification of the submission/application result through email / Short Message Service(SMS) once it is approved. |
| Q.36 | What is the timeout limit for the First Registration Tax System? |
| Answer: | The timeout limit of the First Registration Tax System is 30 minutes. |
| Q.37 | What are the requirements for a computer to access First Registration Tax System through Internet? |
| Answer: | The system requirements are as follows:
|
|
|
| Q.38 | What kinds of digital certificates are accepted by First Registration Tax System? |
| Answer: | First Registration Tax System accepts two kinds of digital certificate :-
(a) Hongkong Post e-Cert (Organisational) certificate; and
(b) Organizational ID-Cert (Class 2 and 5 only) issued by the Digi-Sign Certification Services Limited.
Please note that the company's Business Registration No. and the name of the Authorized Users listed in the organizational digital certificates have to be the same as those registered in the First Registration Tax System.
|
| Q.39 | Where can I download Adobe Reader? |
| Answer: |
You can download Adobe Reader at
here
here.
|
