| Introduction of Vehicle License Tax Vehicle license tax is levied based on classification of transportation equipment. Motor vehicles are classified into small passenger car, large passenger car, truck, and motorcycle in accordance with the exhaust amount (cc) and to be levied different tax rates. 1. Vehicle license tax is a local tax, aside from Taipei City, Kaohsiung City, Lienjiang County, and Kinmen County which levy the tax by themselves, all other counties/cities of Taiwan Province entrust the levy of vehicle license tax to vehicle management authorities. 2. Levy period of vehicle license tax is between April 1 and April 30 each year. Commercial vehicles are levied for two periods each year (first period is between April 1 and April 30 each year, second period is between October 1 and October 31 each year). 3. Transportation equipment without paying tax by the deadline and is caught using public roads after the late payment expiration date shall be ordered to pay the tax payable and levied a one-fold tax payable as penalty; transportation equipment which is reported stopping service, voluntary cancellation, or cancellation of license and is caught using public roads shall be ordered to pay the tax payable and levied a twofold tax payable as penalty. 4. Newly purchased vehicles in the middle of the year shall be levied of vehicle license tax in accordance with the actual number of usage days. 5. Stolen or missing vehicles shall be reported to the police and filed in stolen vehicle cancellation registration at the vehicle management authorities. Introduction of Tax Saving I. Tax Exemption (I) The following forms of transportation equipment are exempt from the vehicle license tax. 1. Vehicles which are classified under the military transportation category. 2. Vessels on which tonnage levies have already been collected by customs houses which are navigating within the jurisdiction of the said customs house. 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. 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. 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. Specially marked or equipped transportation vehicles used exclusively for transport of mail. 7. Specially marked or equipped vehicles which are used exclusively for promoting education and culture. 8. 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, the vehicle shall be issued to one per household. 9. 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. 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. 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. ◎ Taxis are exempt from vehicle license tax just as public mass transportation vehicles. (II) Criteria and procedures of tax exemption for vehicles used exclusively for mentally or physically handicapped/disabled (III) Garbage trucks operated by village, township, or city hall are exempt from vehicle license tax. (IV) Tax exempt vehicles are not required to apply annually. (V) Neighborhood surveillance vehicles are exempt from the tax. (VI) Disaster relief vehicles are exempt from the tax. II. Tax Reduction (I) Missing vehicles or vehicles in custody shall enjoy tax returns in the event of excessive tax payment. (II) In the event of vehicles affected by typhoons or natural disasters, the tax shall be levied based on actual number of days used. (III) Vehicles which are declared out of service, stopped service, or cancelled of license shall complete the license status alteration application in the earliest time possible. (IV) Removal and handling of abandoned vehicles. III. How to Protect Your Rights and Prevent Penalties (I) Overdue payments shall be levied a late payment penalty. (II) Vehicles with overdue tax payments using public road shall be subject to penalties. (III) Use of overdue temporary license shall be levied the overdue tax and subject to penalties of driving without vehicle license. (IV) Newly purchased vehicles without vehicle license or paying tax using public roads shall be subject to penalties. (V) Vehicle title transfer shall be completed in the event of vehicle transaction. (VI) Handling of refusal of title cancellation after a vehicle title is transferred. (VII) New owner of the car after completing vehicle title transfer shall be entitled of tax returns if the tax payment is excessive after the cancellation of the original license. (VIII) Inform taxation authorities for any changes of mailing address. (IX) Vehicles with overdue tax or license cancellation parking or temporarily parking on public roads shall be subject to penalties. (X) Vehicles shall be inspected in accordance with regulations within deadlines to avoid penalties. (XI) Enforcement cases transferred to administrative enforcement authorities having difficulties in payment shall apply for installment payment with administrative enforcement authorities. |