What is the tax-free policy for overseas returnees purchasing cars?
3 Answers
The tax-free policy for overseas returnees purchasing cars is as follows: Regulations stipulate that students who have registered and studied at regular foreign universities (colleges) and completed their studies or training programs for more than one year, and who do not stay abroad for more than 2 years after completing their studies, and apply to customs within one year from the date of entry, are eligible for the following conditions: 1. For the purpose of study and training, studying, pursuing degrees, training, engaging in scientific research, or academic exchanges at regular foreign universities, colleges, or research institutions for more than one academic year. 2. Returning to China within two years after completing studies. 3. First entry after graduation does not exceed one year. 4. One tax-free quota is granted for purchasing a tax-free car. (A continuous stay abroad of 180 days during the study period counts as one quota. A temporary return to China for no more than 30 days can be considered as continuous stay abroad and counted towards the tax-free car purchase quota days. If the stay exceeds 30 days, it cannot be counted as continuous.) 5. Students studying or training in Hong Kong and Macau regions of China enjoy the same benefits.
I studied abroad for over two years, and when I first returned to China, I heard about the tax exemption policy for car purchases, so I quickly took advantage of it, saving tens of thousands in purchase tax. The application process was quite simple. First, I had to obtain the Certificate of Returning to China After Studying Abroad within one year of graduating and returning. This document can be processed at the Service Center for Overseas Study of the Ministry of Education. Then, I just needed to bring my ID to purchase the car. The policy requires buying the first domestically produced car for personal use or an imported car that meets the regulations. After selecting the model, I handed the materials to the dealer, who coordinated with customs to directly deduct the tax. This policy was a huge help, easing the financial pressure for recent returnees. However, it's important not to exceed the time limit—some people procrastinated and missed the one-year deadline, ending up having to pay the full tax amount unnecessarily.
Our child graduated from studying abroad and returned home, so we thought about buying him a car for daily commuting. Then we discovered this tax exemption benefit and immediately applied for it. The process involves first obtaining the Certificate of Returning from Overseas Study, which requires providing the graduation certificate from the foreign school and passport entry stamps to prove a stay abroad of at least 9 months. This document is then used to waive the vehicle purchase tax when buying a car. This saved us nearly 10% of the car's price, effectively exempting the tax portion. It’s highly practical but often overlooked—some people focus solely on job hunting after returning and forget about this, needlessly paying extra. As parents, we found it very cost-effective and recommend other families pay attention to this and complete the procedures for their children in time.
