Except the term " vehicles " as used in Paragraph 5 of Article 12 of the Act, in the case of a tax-exempt commodity that loses its tax-exempt status due to a transfer or a change in purpose of use, the taxpayer shall be reimposed for payment of taxes in accordance with Subparagraph 5 of Paragraph 1 of Article 2 of the Act. The taxable value of the vehicle removed from the manufacturer`s premises or its imported value shall be used to calculate the amount of tax in accordance with the average depreciation method for fixed assets stated in Article 51 of the Income Tax Act. However, vehicles excess the service life shall not count for depreciation.
The aforesaid average depreciation method shall use one year as one computing the unit; where the service life is less than a year, it shall be computed by the ratio between the actual number of months used and whole year, if the service life is less than one month, it is counted as one month. For the depreciation amount, the following formula is used to calculate salvage value：
The salvage value=taxable value of tax-exempt commodity/(the years of durability prescribed in the Table of the Service Life of Fixed Assets+1)