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Commodity tax cut for vehicle / motorcycle trade-in

Taichung Customs announced that, in an effort to boost the local automobile industry, a tax benefit for used vehicles being traded-in for new ones will be introduced, pursuant to the Article 12-5 of the Commodity Tax Act, amended on 6 Jan. 2016. With effect from 8 Jan. 2016, a commodity tax deduction of NT$50,000 is now applicable to individuals or businesses purchasing a new car six months within the disposal date of old vehicles. The disposal of a used vehicle could be either scrapping or exporting. For scooters with an engine of 150c.c. or less, the tax deduction is NT$4,000
The Commodity Tax deduction could be granted where the following criteria are met:

Applications must be within the 5-year-effectiveness of the above-mentioned Article.

1. Car owners purchasing a new car and registering the plate must file the application within six months of disposing of the vehicle. A replacement of the vehicle may be eligible for the discount under the scheme if it is acquired up to 6 months prior to the disposal of the old vehicle but no longer than 6 months afterwards. Also, applications are eligible only if the ownership registration of the old car is over 1 year and the old vehicle is over 6 years old since manufacture. The applicable vehicles include sedans, trucks and passenger/goods vehicles.
2. Scooter owners purchasing a new one and registering the plate should file the application within six months of disposal of the old one. A replacement of the vehicle may be eligible for the discount under the scheme if it is acquired up to 6 months prior to the disposal of the old vehicle but no longer than 6 months afterwards. Also, applications are eligible only if the ownership registration of the old scooter is over 1 year and the old scooter is over 4 years since manufacture. The applicable scooters are those with an engine of 150 cc or less.
3. The tax deduction could be applied to new car/motorcycle purchases by the owner, spouse as well as relatives within second degree of kinship.

Taichung Customs reminds participants that the tax deduction scheme has an expiry of five years and applications must be filed by car dealers, manufacturers or importers. The owners of the new cars / motorcycles should contact their dealers to claim tax deduction under this scheme.

To follow the progress of the application, please visit the eTax Portal website of the Ministry of Finance at https://www.etax.nat.gov.tw/etwmain/front/ETW214W

News Contact: Mr. Cheng
Tel: 04-25323594 #15

  • Publish Date:2016-07-29
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