v3.26.1
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax
17.
Income Taxes
Cayman Islands
Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands.
Austria
EHang GmbH is subject to Austria profits tax of 23% on its activities conducted in Austria.
France
EHang France was subject to France profits tax of 28% on its activities conducted in France.
Spain
EHang Spain is subject to Spain profits tax of 23% on its activities conducted in Spain.
Hong Kong
Ehfly and EHang HK are incorporated in Hong Kong and are subject to Hong Kong profits tax. Hong Kong profits tax for a corporation from the year of assessment 2018 and 2019 onwards is generally 8.25% on assessable profits up to HK$2.0 million; and 16.5% on any part of assessable profits over HK$2.0 million.
PRC
The Company’s subsidiaries and the VIEs in the PRC are subject to the statutory rate of 25%, in accordance with the Enterprise Income Tax law (the ‘‘EIT Law’’), which was effective since January 1, 2008 except for certain entities eligible for preferential tax rates.
In accordance with the PRC Income Tax Laws, an enterprise awarded with the High and New Technology Enterprise (“HNTE”) certificate may enjoy a reduced EIT rate of 15%. For the year ended December 31, 2023, 2024 and 2025, EHang Intelligent and EHang GZ were qualified as HNTE and eligible for a 15% preferential rate.
According to a policy promulgated by the State Tax Bureau of the PRC and effective from 2008 onwards, enterprises engaged in R&D activities are entitled to claim an additional tax deduction amounting to 50% of the qualified R&D expenses incurred in determining its tax assessable profits for that year. The additional tax deduction amount of the qualified R&D expenses has been increased from 50% to 75%, effective from 2018 to 2020, according to a new tax incentives policy promulgated by the State Tax Bureau of the PRC in September 2018 (“Super Deduction”). According to Announcement of the Ministry of Finance and the State Taxation Administration [2021] No.13 (“Circular 13”), manufacturing enterprise with qualified R&D expenses could enjoy R&D Super Deduction, i.e. to claim additional 100% R&D expenses on top of those actually incurred. Subsequently, pursuant to Announcement of the Ministry of Finance and the State Taxation Administration 2023 No. 7, effective from January 1, 2023, all eligible enterprises are entitled to claim an additional
100
% deduction for qualified R&D expenses. EHang GZ, EHang Intelligent ,EHang Yunfu and Hefei EHang Intelligent Equipment Co., Ltd. were entitled to 100% super deduction.
Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to
non-PRC
resident enterprises, and proceeds from any such
non-resident
enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective
non-PRC
resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.
 
 
Income tax expenses (benefits) comprises of:
 
    
For the year ended December 
31
,
  
    
2023
     
2024
     
2025
  
    
RMB
     
RMB
     
RMB
     
US$
  
Income tax expenses applicable to PRC operations
            
Current income tax expenses
      181        281        2,297        329  
Deferred income tax benefits
      —         —         (6,969 )      (997 )
  
 
 
     
 
 
     
 
 
     
 
 
  
Subtotal income tax expenses (benefits) applicable to PRC operations
      181        281        (4,672 )       (668 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Income tax expenses applicable to
Non-PRC
operations
            
Current income tax expenses
      25        105        263        38  
  
 
 
     
 
 
     
 
 
     
 
 
  
Subtotal income tax expenses applicable to
Non-PRC
operations
      25        105        263        38  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total income tax expenses (benefits)
   
 
206
 
   
 
386
 
   
 
(4,409
)
   
 
(630
)
  
 
 
     
 
 
     
 
 
     
 
 
  
Upon adoption of ASU
2023-09,
Improvements to Income Tax Disclosures, reconciliations of the income tax expenses (benefits) computed
by
applying the PRC statutory income tax rate of 25% to the Group’s income tax expenses (benefits)
for
the year ended December 31, 2025
is
presented as follows:
 
 
  
For the year ended December 31, 2025
 
 
  
Amount
 
  
Percent
 
 
  
RMB
 
  
US$
 
  
 
 
Income tax benefits at PRC statutory tax rate of 25%
(1)
   
 
(70,205
) 
   
 
(10,039
) 
   
 
25.0
% 
Other jurisdictions tax effects
         
Cayman
         
Effect of different tax rates in different jurisdictions
      (2,055 )       (294 )       0.7  
Other jurisdictions
      92        13        —   
Change in valuation allowance
      18,812        2,690        (6.7 )
Nontaxable or non-deductible items
         
Share-based compensation expenses
      36,605        5,234        (13.0 )
Additional deduction for qualified R&D expenses
      (19,822 )      (2,835 )      7.1  
Others
      1,231        177        (0.5 )
Others
         
Effect on adoption of preferential tax rate
 
 
 30,933
 
 
 
 4,424
 
 
 
 (11.0
)
  
 
 
     
 
 
     
 
 
  
Income tax expenses (benefits)
   
 
(4,409
)
   
 
(630
)
   
 
1.6
%
 
  
 
 
     
 
 
     
 
 
  
Effect of preferential tax rate inside the PRC on basic and dilutive loss per share
      —         —      
  
 
 
     
 
 
     
 
(1)
The PRC statutory tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.
 
 
Reconciliations of the income tax expense computed by applying the PRC statutory income tax rate of 25% to the Group’s income tax expense for the years ended December 31,2023 and 2024 in accordance with the guidance prior to the adoption of ASU
2023-09
presented are as follows:
 
    
For the year ended
December 31,
  
    
2023
    
2024
  
    
RMB
    
RMB
  
Loss before income tax expense
      (302,135 )      (229,646 ) 
PRC statutory tax rate
(1)
      25 %      25 % 
Income tax benefits at PRC statutory tax rate of 25%
      (75,534 )      (57,412 ) 
Effect of different tax rates in different jurisdictions
      (354 )      (547 ) 
Non-deductible
expenses
(2)
      24,855       42,563  
Additional deduction for qualified R&D expenses
      (16,012 )      (17,941 ) 
Effect on adoption of preferential tax rate
      27,227       24,566  
Others
      252       163  
Change in valuation allowance
      39,772       8,994  
  
 
 
    
 
 
  
Income tax expenses
   
 
206
 
  
 
386
 
  
 
 
    
 
 
  
Effect of preferential tax rate inside the PRC on basic and dilutive loss per share
      —        —   
  
 
 
    
 
 
  
 
(1)
The PRC statutory tax rate is used for the reconciliation as the majority of the Group’s operations are based in the PRC.
(2)
For the years ended December 31, 2023 and 2024,
non-deductible
expenses mainly represent the share-based compensation expenses.
Upon adoption of ASU
2023-09,
Improvements to Income Tax Disclosures, cash paid for income taxes, net of refunds, during the year ended December 31, 2025 was as follows:
 
 
  
For the year ended
December 31, 2025
 
 
  
RMB
 
  
US$
 
PRC
      781        112   
Hong Kong
      82        12  
Other jurisdictions
 
 
 16
 
 
 
 2
 
  
 
 
     
 
 
  
Total cash paid for income tax
   
 
879
 
   
 
126
 
  
 
 
     
 
 
  
Cash paid for income taxes, net of refunds, during the years ended December 31, 2023 and 2024 was RMB184 and RMB101, respectively.
 
 
The significant components of the Group’s deferred tax assets(liabilities) were as follows:
 
    
As of December 31,
  
    
2023
     
2024
     
2025
  
    
RMB
     
RMB
     
RMB
     
US$
  
Non-current
deferred tax assets
            
Tax losses
      160,563        169,879        189,984        27,167  
Lease liabilities
      13,103        21,477        20,522        2,935  
Expected credit losses
      20,337        16,264        18,102        2,589  
Welfare payables
      5,208        6,382        8,093        1,157  
Accruals and others
      875        2,527        4,122        589  
Unrealized profit arising from elimination of
inter-company transactions
      (146 )       132        2,753        394  
Inventory provision
      1,397        1,421        1,357        194  
Intangible assets
      —         65        101        14  
  
 
 
     
 
 
     
 
 
     
 
 
  
Total deferred tax assets
      201,337        218,147        245,034        35,039  
Less: valuation allowance
      (189,418 )       (198,412 )       (218,223 )      (31,205 )
  
 
 
     
 
 
     
 
 
     
 
 
  
Deferred tax assets, net of valuation allowance
   
 
11,919
 
   
 
19,735
 
   
 
26,811
 
   
 
3,834
 
Non-current
deferred tax liabilities
            
Right-of-use
assets
      (11,919 )       (19,682 )       (18,039 )      (2,579 )
Unrealized gain on investments accounted for using equity method and other investments
      (292 )       (345 )       (2,095 )      (300 )
  
 
 
     
 
 
     
 
 
     
 
 
  
Total deferred tax liabilities
   
 
(12,211
) 
   
 
(20,027
) 
   
 
(20,134
)
   
 
(2,879
)
  
 
 
     
 
 
     
 
 
     
 
 
  
Deferred tax assets, net
   
 
— 
 
   
 
— 
 
   
 
6,969
 
   
 
997
 
Deferred tax liabilities, net
   
 
(292
) 
   
 
(292
) 
   
 
(292
) 
   
 
(42
) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Movement of valuation allowance is as follows:
 
    
For the year ended December 31,
  
    
2023
     
2024
     
2025
  
    
RMB
     
RMB
     
RMB
     
US$
  
Valuation allowance
            
Balance at the beginning of the years
      149,646        189,418        198,412        28,372  
Additions
      39,853        21,550        31,526        4,508  
Tax loss utilized
      (81 )       (12,556 )       (11,715 )       (1,675 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Balance at the end of the years
   
 
189,418
 
   
 
198,412
 
   
 
218,223
 
   
 
31,205
 
  
 
 
     
 
 
     
 
 
     
 
 
  
 
 
For the years ended December 31, 2024 and 2025, with the growth of its business performance, some subsidiaries of the Group are generating profits and utilizing tax losses brought forward from prior years.
As of December 31, 2023, 2024 and 2025, the Group had deductible tax losses of RMB976,068, RMB1,034,638 and RMB1,154,646 (US$165,112) derived from entities in the PRC. The tax losses in PRC can be carried forward for five years to offset future taxable profit, and the period was extended to ten years for entities qualified as HNTE in 2018 and thereafter. The tax losses of entities in the PRC began to expire from December 31, 2026 to 2035 if not utilized.
As of December 31, 2023, 2024 and 2025, the Group had deductible tax losses of RMB31,890, RMB32,893 and RMB29,463
 
(US$4,213) derived from entities in Hong Kong that will not expire if not utilized.
Unrecognized Tax Benefit
As of December 31, 2024 and 2025, the Group had unrecognized tax benefit of RMB5,480 and RMB5,480
 
(US$784), respectively. The unrecognized tax benefit was mainly related to the withholding tax accrued for the facilitating service in the acquisition of land use right from Guangzhou government by EHang HK on behalf of a third-party buyer in 2017 and under-reported statutory profits before tax. The Group does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months; however, an estimate of the range of the possible change cannot be made at this moment. The unrecognized tax benefits of RMB5,480
 
(US$784), if ultimately recognized, will impact the effective tax rate.
A reconciliation of the beginning and ending amount of unrecognized tax benefit was as follows:
 
    
For the year ended December 31,
  
    
2023
     
2024
     
2025
  
    
RMB
     
RMB
     
RMB
     
US$
  
Balance at the beginning of the years
      (5,480 )       (5,480 )       (5,480 )       (784 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Balance at the end of the years
   
 
(5,480
) 
   
 
(5,480
) 
   
 
(5,480
) 
   
 
(784
) 
  
 
 
     
 
 
     
 
 
     
 
 
  
The Group did not record any significant interest and penalties related to an uncertain tax position for the years ended December 31, 2023, 2024 and 2025. No accumulated interest expenses and penalties were recorded in unrecognized tax benefit as of December 31, 2023, 2024 and 2025, respectively.
The material jurisdictions in which the Group is subject to potential examination is China. In general, the PRC tax authorities have up to five years to review a company’s tax filings. As of December 31, 2025, the tax years ended December 31, 2020 through year ended as of the reporting dates for WFOE, the VIEs remain open to examination by the PRC tax authorities.