• Announcement of the State Administration of Taxation on Issues concerning Exempting Experts Who Come to China for Permanent Residence from Vehicle Purchase Tax
• Document Number：Announcement No.2 [2018] of the State Administration of Taxation
• Area of Law： Taxation
• Level of Authority： Departmental Regulatory Documents
• Date issued：01-02-2018
• Effective Date：01-02-2018
• Status： Effective
• Issuing Authority： State Administration of Taxation

Announcement of the State Administration of Taxation on Issues concerning Exempting Experts Who Come to China for Permanent Residence from Vehicle Purchase Tax
(Announcement No.2 [2018] of the State Administration of Taxation)
The Notice of the Ministry of Finance and the State Administration of Taxation on Vehicle Purchase Tax Exemption for Special Flood Control Vehicles and Other Vehicles (No. 39 [2001],MOF) provided that an expert who comes to China for permanent residence shall be exempt from vehicle purchase tax on one sedan car imported for self use. The Announcement of the State Administration of Taxation on Issues concerning the Administration of the Collection of Vehicle Purchase Tax (Announcement No. 4 [2015], SAT) further specified that an expert who comes to China for permanent residence shall, when undergoing the tax exemption formalities for the imported sedan car for self use, provide the expert certificate as issued by State Administration of Foreign Experts Affairs or an entity authorized by it, in addition to the application materials required by the Measures for the Administration of Collection of Vehicle Purchase Tax (issued by Order No. 33, SAT, and amended by Order No. 38, SAT).
In the Notice of the State Administration of Foreign Experts Affairs, the Ministry of Human Resources and Social Security, the Ministry of Foreign Affairs, and the Ministry of Public Security on Comprehensively Implementing the Work Permit System for Foreigners Employed in China (No. 40 [2017], State Administration of Foreign Experts Affairs), it is decided to implement the work permit system of foreigners in China across the country from April 1, 2017 and uniformly replace the original Employment Permit for Foreigners and the Foreign Expert Certificate with the Work Permit for Foreigners Employed in the People's Republic of China (hereinafter referred to as the “Work Permit for Foreigners”). The Work Permit for Foreigners is divided into three categories, including Category A, Category B and Category C. The Work Permit for Foreigners in Category A is issued to high-end foreign talents, Category B to foreign professionals, and Category C to other foreigners. Accordingly, foreigners holding the Work Permit for Foreigners in Category A and Category B (including the pilot versions) are the experts who come to China for permanent residence as prescribed in Article 3 of the Document (No. 39 [2001], MOF). Therefore, the “expert certificates as issued by State Administration of Foreign Experts Affairs or the entities authorized by it” as set forth in Article 17 of Announcement No. 4 [2015] of the State Administration of Taxation means the expert certificates issued before March 31, 2017 by the State Administration of Foreign Experts Affairs or the entities authorized by it or the relevant certificates issued in Qingdao and other areas covered by the pilot program; or the Work Permit for Foreigners in Category A and Category B as issued after April 1, 2017 by the State Administration of Foreign Experts Affairs or the entities authorized by it.

State Administration of Taxation
January 2, 2018