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Chinese insurance companies licensed to offer compulsory third party vehicle insurance will collect vehicle and ship taxes for the tax authorities as of July 1 in accordance with the country's Interim Regulations on Vehicle and Vessel Tax.

They are required to get ready for tax collection in terms of personnel training, establishing a financial system and designing receipts before July 1, according to an announcement recently jointly issued by the State Administration of Taxation and the China Insurance Regulatory Commission.

Currently a total of 24 insurance companies have won licenses to offer compulsory third party vehicle insurance from the commission.

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The full text is available in the May Issue of China Insurance.