The owner of any form of transportation equipment using public roads or rivers, no matter what the purpose is for, must apply to the tax authorities for appropriate vehicle licenses and pay taxes due. Transportation equipment is defined as a vehicle or vessel.
The taxpayers of vehicle license tax are those owners of any form of transportation equipment subject to the Vehicle License Tax Law.
The vehicle license tax is levied on five major categories: small passenger vehicles (seating 9 or fewer), motorcycles, large passenger vehicles (seat 10 or more), trucks and vessels. Small passenger vehicles are further classified into private use and commercial use.
The following forms of transportation equipment are exempt from vehicle license tax:
1. Vessels which tonnages have already been collected by a customs office and are navigating within the jurisdiction of the said customs office.
2. Vehicles given to diplomats and personnel who have diplomatic privileges, provided that approval has been granted by the Ministry of Foreign Affairs and special licenses have been obtained from the transportation authorities.
3. Specially marked or equipped transportation vehicles used exclusively for transport of mail.
4. Specially marked or equipped vehicles which are used exclusively for promoting education and culture.
5. Transportation vehicles used in special offshore areas and carry a valid local registration; however, sedans that carry an exhaust rating exceeding 1800 c.c. are excluded.
6. Vehicle owned and used only by the mentally or physically disabled that has valid driver’s license and an identified document issued by the authorities, limited to only one vehicle per person. However, for the mentally or physically disabled who cannot obtain a driver’s license but has been approved by the transportation authorities, the vehicle shall be issued to one per household.
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