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Taipei City Revenue Service

General Description of Taxation

Vehicle License Tax

Tax-saving tips for Vehicle License Tax

I. Tax Exemption

  1. The following forms of transportation equipment are exempt from the vehicle license tax:
    1. (1) Vehicles which are classified under the military transportation category.
    2. (2) Vessels on which tonnage levies have already been collected by a customs house and which are navigating within the jurisdiction of the said customs house.
    3. (3) Specially equipped 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.
    4. (4) 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.
    5. (5) 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.
    6. (6) Specially marked or equipped transportation vehicles used exclusively for transport of mail.
    7. (7) Specially marked or equipped vehicles which are used exclusively for promoting education and culture.
    8. (8) For Vehicles used by a mentally or physically disabled person who carries a Mental/Physical Disability Manual or certificate issued by the authorities and has obtained a driver’s license, limited to one vehicle per person; for a mentally or physically disabled person who does not have a driver’s license due to mental or physical condition, 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 cc, 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 cc, 262 HP or 265.9 PS.
    9. (9)Vehicles owned and used exclusively by social welfare institutions or organizations which have an identification document issued by social welfare authorities; up to three vehicles for each social welfare institution or organization. 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.
    10. (10) 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.
    11. (11)Transportation equipment driven in districts to which the Statute for Offshore Island Development applies and having a vehicle license issued by the local transportation authority. However, small passenger vehicles with total cylinder displacement volume over 2400 cc, completely electric-operated with a maximum HP over 262 or PS 265.9 are excluded.
  2. 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.
  3. Procedures on tax exemption for vehicles applied by mentally or physically handicapped/disabled persons
    1. (1)Vehicles operated by mentally or physically handicapped persons are exempt from the vehicle license tax, however owner is required to submit the following documents to a local tax collection agency.
      1. ① A licensed mentally or physically handicapped vehicle owner is limited to apply for only one vehicle, and is required to submit the following mandated documentation in the filing procedure.
        1. A mentally or physically handicapped identification document.
        2. A vehicle registration owned by a mentally or physically handicapped person.
        3. ID or a copy of the household registry.
        4. Personal endorsement seal/stamp of the vehicle owner.
      2. ② A mentally or physically handicapped individual who does not possess a driver's license will be eligible to obtain a permit limited to one vehicle per disabled person.
        Required documents include:

         

        1. A mentally or physically handicapped identification document.
        2. A valid vehicle registration.
        3. A copy of the household registry.
        4. personal endorsement seal/stamp of the vehicle owner.
          The vehicle owner must be the mentally or physically disabled person himself/herself, his/her spouse or a second-degree relative in the same household .
    2. (2)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.
  4. Tax exemption on garbage trucks operated by village, township or city hall. Specially equipped and marked garbage trucks for maintaining public health operated by the town hall of a municipal village, township are exempt from the tax levy. When applying for the tax exemption, please bring transportation authorities' approved documents, new license registration, vehicle registration, photos, and a completed application form to a local tax collection authority for a permit to be issued.
  5. 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, it is exempt from filing a tax exemption form on an annual basis.


II. Tax Deductions

  1. Tax refund may be obtained on tax overpayment for vehicles' status change
    A stolen vehicle should be reported to police authorities at once. A stolen vehicle or one that has been impounded by government authorities shall require to file a license suspense or nullification petition at the local Motor Vehicle Center with a police stolen vehicle report or other related documents issued by the government authorities. In this case vehicle license tax for that year may be calculated based on the actual dates of operation. And one that has had the yearly tax due paid in full are entitled a tax refund on the remainder tax collected. However, a registration reinstatement shall be promptly filed with the Motor Vehicle Center once a stolen vehicle has been recovered, and to have the vehicle tax account reactivated.
  2. Motor vehicles hampered by typhoon or earthquake may be switched to a daily count tax levy
    A temporary suspension of tax levy may be filed in the event that a motor vehicle has been hampered by typhoon or earthquake and requires proper overhaul before it can be operated again. A permanent suspension of the tax levy may be filed if a vehicle has been destroyed to a point beyond repair by presenting proof of documents issued by a district magistrate, along with proper identification, vehicle registration, vehicle license plates to the local Motor Vehicle Center, so that the vehicle license plate can be nullified permanently. In which, any tax overpayment may be refunded by filing a refund request with local Motor Vehicle Center where the vehicle registration is kept - as per interpretation made by the Ministry of Finance, reference MOF No. 850530491, announced on Sept. 2, 1996.
  3. Vehicles that have had the license delisted, suspended or canceled should apply for a modification registration.
    To retire vehicles that can no longer be operated or will no longer be operated, or simply have had the vehicle registration canceled or withdrawn, a proper modification registration shall be filed with the Motor Vehicle Center seeking a modification registration either for nullification, suspension or permanent delisting. In which, the vehicle license tax may be converted to a daily count, and that any overpayment may have a tax refund covering the unused period be refunded by local Motor Vehicle Center.
  4. Disposal of delisted, unwanted, or useless vehicles
    Unserviceable vehicles may disposed and removed by authorized junk car removal services authorized by the Executive Yuan's Environmental Protection Administration, pending a nullification proceedings to be filed with local Motor Vehicle Center by presenting a proper ID, vehicle registration, license plates and other required documentation, seeking the vehicle operating license tax be suspended from the date of recall/disposal of the vehicle.