Is Tax Required for Second-hand Car Transfer?

[VanAlina]

For the transfer of personal second-hand cars, the transaction tax has been abolished, and there are no other taxes, so no tax is required. Below is the relevant introduction: Different situations: If the selling price of the second-hand car is lower than the original value of the vehicle, there is no need to pay corporate income tax or personal income tax. If the selling price of the second-hand car exceeds the original value, corporate income tax should be paid at a 2% value-added tax rate, along with urban maintenance and construction tax and education surcharge. Additionally, for personal income from the transfer of second-hand cars, personal income tax should be calculated and paid based on the income from property sales. Materials required for second-hand car transfer: original ID of the seller, new buyer's ID, original/duplicate vehicle license, vehicle purchase tax certificate, vehicle and vessel tax payment receipt, vehicle registration certificate, vehicle inspection report, license plate fee receipt, insurance policy/card/invoice.