What are the tax-free vehicles for returning overseas students?
2 Answers
In addition to original imported vehicles and domestically produced vehicles, most joint-venture brand models can be purchased tax-free. The following are the characteristics of tax-free vehicles: 1. The more expensive the vehicle, the more tax is exempted: The more expensive the domestic model, the more purchase tax and imported parts it has, so the tax that can be exempted is also more. 2. Small tax exemption for domestic joint-venture vehicles: Generally, domestic joint-venture models, especially small cars, have a small tax exemption. 3. New models are cost-effective: Generally, for relatively new models, there are no major discounts in the market. If you use the tax-free policy to purchase a car at this time, it is more cost-effective. 4. Models that have been on the market for a while are not cost-effective: For models that have been on the market for a while and already have significant discounts in the market, using the tax-free policy to purchase a car is not cost-effective. Tax-free vehicles do not enjoy the market discount price.
When I returned to China last year, I immediately looked into the tax-free car policy—it's such a great deal! As a returning overseas student, the tax-free cars mainly include localized models from imported joint-venture brands, exempting the 10% purchase tax. I checked the list, and common options include Volkswagen's Golf and Magotan, BMW's 3 Series and 5 Series, Mercedes-Benz's C-Class and E-Class, as well as Buick's LaCrosse. There are quite a few choices, depending on your return date and local policies. I went with the Magotan, and after driving it for a few months, I can say the quality is excellent, plus it saved me nearly 30,000 RMB. The application process isn’t difficult—just bring your study-abroad proof, ID card, and customs approval. It’s best to apply early to avoid delays. This policy is really thoughtful, encouraging us to return and contribute to the country. I’d recommend my peers prioritize this option.
