Buying a car is one of life's great pleasures.
But some people, after buying a new car, not only dare not share their joy on social media but even months after picking up the car, their friends may not even know they bought one... They might just be international students who recently returned to China.
For many returning international students, buying a car is the first thing they do, but fearing being labeled as flaunting wealth on WeChat Moments, they flock to Xiaohongshu instead.
Opening Xiaohongshu's #internationalstudentsbuyingcars topic, you'll find yourself at a grand car delivery ceremony.
Here, we must speak up for international students: rushing to buy a car after returning is not showing off, but because the national preferential policies for overseas returnees are simply too good!
The state offers many preferential policies for overseas returnees to encourage them to contribute to the nation's development. In terms of automobiles, international students who return and purchase a domestically produced car can enjoy a vehicle purchase tax exemption.
However, since the outbreak of the global COVID-19 pandemic, many international students were unable to return to campus and had to take online classes in China, making it difficult to meet the requirement of 270 cumulative days abroad for the tax-free car application.
Latest 2022 Tax-Free Car Purchase Policy
The General Administration of Customs has adjusted the conditions for returning students applying for tax-free cars during the pandemic, relaxing the previous 270-day cumulative overseas residency requirement.
For eligible students, the day after the graduation certificate issuance date will be considered the first entry date.
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The following conditions must be met simultaneously to qualify:
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Total program length ≥ 270 days, overseas study time + domestic study time ≥ 9 months
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Was studying abroad before the pandemic and returned to China to continue studies due to the pandemic
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Took online courses in China and graduated
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Did not go abroad again for study after returning (if going abroad again, the online class duration cannot be accumulated)
The above policy is tentatively effective until September 1, 2022.
Are Tax-Free Car Purchases Worth It for International Students?
According to the tax-free models currently announced by "China Auto Import & Export Co., Ltd.", the policy covers over 20 joint-venture brands, including FAW-Volkswagen Audi, BMW Brilliance, Beijing Benz, FAW-Volkswagen, FAW Toyota, Dongfeng Infiniti, etc., offering a rich selection.
Whether a tax-free vehicle is a good deal largely depends on the car's price and time on the market:
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The more expensive the model, the higher the purchase tax — so buying a pricier car means more savings
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Models with low market demand, especially compact cars with lower prices, offer smaller tax savings and are less worthwhile
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Newly launched models without big market discounts are more advantageous under the tax-free policy
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Models that have been on the market for a while and already have substantial discounts are not eligible for market discounts under the tax-free program, making them less worthwhile
Taking the Audi A6L 2021 45 TFSI Quattro Dynamic as an example:
Market guide price: 443,800 RMB
Purchase tax amount: 443,800 RMB ÷ 11.3 = 39,300 RMB
Tax-free price for international students: 355,000 RMB
Ordinary buyer: Based on the guide price of 443,800 RMB, the total cost after registration is 483,100 RMB
International student buyer: Paying the tax-free price of 355,000 RMB, no purchase tax upon registration, total cost is 355,000 RMB
Total savings: 483,100 RMB - 355,000 RMB = 128,100 RMB
From a tax-saving perspective, the Audi A6L is truly the king of value!
Application Conditions and Materials for Tax-Free Car Purchase
1. Qualification Application Conditions
1. Purpose of study or advanced training at a recognized foreign university, college, or research institution, pursuing a degree, further education, or engaging in scientific research or academic exchange, with a total overseas duration of 270 days or more.
2. Return to China within two years of completing studies.
3. Submit the car purchase application to customs within one year of the first entry after completing studies or training.
*Students from Hong Kong, Macao, and Taiwan enjoy the same benefits.
2. Materials for Tax-Free Car Purchase
1. Degree certificate or study certificate.
2. "Certificate for Returned Overseas Students"; if unavailable, valid admission notice, academic certification or invitation letter, completion letter, etc. can be used instead.
3. ID card, household registration book, passport or travel permit for Hong Kong/Macau/Taiwan.
4. Entry and exit records, including all records during the entire study period entering and exiting China or mainland China.
5. "Application Form for Imported Articles for Personal Use within the Customs Territory of the People's Republic of China".
*Customs review requirements vary by region. Please follow the final requirements of the local customs office.
In summary, tax-free cars for international students are still worth buying. Many tax-free models can easily save you tens of thousands.
As an exclusive benefit for international students, those who have just finished their studies and returned to the motherland with a car purchase plan should not miss out on this preferential policy!
