Vehicle Licence Tax

Tax Exemption

( I ) The following forms of transportation equipment are exempt from the vehicle license tax.

• Vehicles which are classified under the military transportation category.
• Vessels on which tonnage levies have already been collected by customs houses which are navigating within the jurisdiction of the said customs house.
• Specially equipped and marked vehicles intended for maintaining public safety, such as police squad cars, detective and investigation unit vehicles, vehicles used for transporting prisoners, fire engines, specialized rescue vehicles and ocean rescue vehicles...etc.
• Specially equipped and marked vehicles belonging to public hospitals or other public organizations and used exclusively for public health purposes, such as ambulances, hospital vehicles, water spraying vehicles, sewage trucks, garbage trucks...etc.
• Vehicles given to diplomats and personnel who enjoy diplomatic privileges, provided that approval has been granted by the Ministry of Foreign Affairs and special licenses have been obtained from the transportation authorities.
• Specially marked or equipped transportation vehicles used exclusively for transport of mail.
• Specially marked or equipped vehicles which are used exclusively for promoting education and culture.
• One vehicle owned and used only by the mentally or physically disabled that has an identified document issued by the authorities and driving license, limited to only one vehicle per person. However, for the mentally or physically disabled, who can't get a driving license but has been approved by the Transportation Authorities, and the vehicle is owned by himself/ herself, his / her spouse or a second-degree relative in the same household and which is to be used for the mentally/ physically disabled person, one vehicle per disabled person. However, vehicles with a total cylinder displacement volume of over 2400 cubic centimeters, and completely electric-operated with a maximum HP over 262 or PS over 265.9 shall be exempted from the amount of tax for 2400 cubic centimeters, 262 HP or 265.9 PS.
• Vehicles legitimately registered and used by social welfare organizations and institutions that have been authorized by local authorities, limited to three vehicles per organization or institution. However, vehicles with fixed assisting equipment to carry disabled persons and those who need long-term care, as well as a particular sign showing exclusive use by social welfare institutions or organizations which have an identification document issued by the social welfare authorities and authorized by the municipal or county (city) government; more than three vehicles now are allowed be exempted from the vehicle license tax for each social welfare institution or organization.
• Buses and vehicles used exclusively for public mass transportation and owned by enterprises of the highway bus industry or urban district bus industry, where these enterprises have been approved by the Transportation Authorities.
• Transportation vehicles used in special offshore development areas and carry a valid local registration; however, sedans that carry an exhaust rating exceeding 1800 c.c. are excluded.

All vehicles listed above which are exempt from the vehicle license tax levy, shall be required to follow the procedure and apply for exemption of the vehicle license tax before operation of such vehicles. No such vehicles may be resold, transferred, modified, or changed their designated usage, unless otherwise approved by the transportation authorities.

(II) Procedures on tax exemption for vehicles applied by mentally or physically disabled

Vehicles operated by mentally or physically disabled are exempt from the vehicle license tax; however owner is required to submit the following documents to a local tax collection agency.

1. A licensed mentally or physically disabled vehicle owner is limited to apply for only one vehicle, and is required to submit the following mandated documentation in the filing procedure.

• A mentally or physically disabled identification document.
• An application filed in between tax levying periods is required to pay the tax due from January 1st to the date the application; those who have already paid the entire year's tax due on an application filed after the tax deadline may file a tax refund for the period from the date of application filed to the year-end.

2. A mentally or physically disabled individual who does not possess a driver's license will be eligible   to obtain a permit limited to one vehicle is owned by himself/ herself, his / her spouse or a second-degree relative in the same household and which is to be used for the mentally/ physically disabled person. Required documenters are,

• A mentally or physically disabled identification document.
• An application filed in between tax levying periods is required to pay the tax due from January 1st to the date the application; those who have already paid the entire year's tax due on an application filed after the tax deadline may file a tax refund for the period from the date of application filed to the year-end.

(III) Tax exempt vehicles are not required to file annually In an effort to simplify the process, if a vehicle with a tax exemption status does not modify or change its intended usage is exempt from filing a tax exemption form on an annual basis. (as per interpretation by the Ministry of Finance, reference MOF No. 770652065, announced on Feb. 24, 1988) The change of its intended usage or purpose refers to cases such as a public bus modified into a tour bus and so forth. It is essential to change a vehicle's registration immediately once a tax exempt vehicle has been modified for a different usage, which would make it taxable as it no longer qualifies for tax exemption.