Can a tax-deducted vehicle be transferred to one's own name?
1 Answers
It is possible to transfer the vehicle to your own name, but you will need to pay back the taxes. Since the company has already claimed tax deductions when registering the vehicle, transferring it to an individual is legally considered a sale (transfer). The company must pay the corresponding value-added tax (VAT) according to the law, which is calculated at 17% as output tax. From a tax planning perspective, the following methods can be considered: During the transfer, the transfer price can be set lower, and the output tax will be calculated based on the actual transfer amount. The tax risk here is that transferring the vehicle to a shareholder is considered a related-party transaction. If the transaction price is not fair, the tax authorities have the right to reassess it. Therefore, the transfer price should not be unreasonable. After the company is dissolved, the vehicle can be transferred to the shareholder's name. In theory, taxes should still be paid after the company is dissolved, but since the tax registration certificate has been canceled, the tax authorities no longer oversee this. Important considerations: Necessity: Completing a used vehicle transfer legally finalizes the change of ownership, ensuring the vehicle's legal origin (e.g., avoiding purchasing smuggled or stolen vehicles). It also clarifies the division of responsibilities between the buyer and seller regarding the vehicle, such as debt disputes or traffic violations, protecting the legal rights of both parties. Conditions: The vehicle must have a legal origin and proper documentation, no outstanding bank liens or court seizure records, no unresolved traffic violations or accident records, no unpaid fees, and all required documents must be complete.
