Vehicle Taxes and Fees
When buying a car in Taiwan, in addition to the price of the car itself, you also need to keep in mind the following four extra expenses:
(1) Car Insurance
The road is a dangerous place. In order to prevent possible risks, you can buy car insurance. There are three types of car insurance:
- Compulsory insurance – the government stipulates that this insurance must be purchased, and is required immediately when buying a car. In case of a traffic accident, it compensates the other party up to NT$ 2 million for death, and NT$ 200,000 for medical expenses. The insured persons include passengers, the other’s driver, the other’s passengers and other third parties.
- Third party liability insurance — you can decide by yourself whether to purchase additional protection. When the compulsory insurance is insufficient, you can use the third party liability insurance to settle claims. Third party liability insurance is divided into property loss and bodily injury. The insured persons include the other party’s driver, the other party’s passengers, the third party, and the other party’s vehicle and property.
• Excess liability insurance — also an additional, non-compulsory car insurance. This type of insurance has the highest amount of insurance available. When compulsory insurance and third party liability insurance are not enough, excess liability insurance can be used to settle further claims. Those covered by excess liability insurance include the other party’s driver, the other party’s passengers, third parties, and the other party’s vehicle and property.
(2) Vehicle License Tax
The Vehicle License Tax is a car tax that must be paid every year
- The period of the annual collection is from April 1st to April 30th
- The calculation method of the vehicle license tax amount is according to the type of car, and the total cylinder displacement or other power:
Large truck – engine displacement 4800cm3: vehicle license tax NT$ 7,200
Automobile – engine displacement 2400cm3: vehicle license tax NT$ 11,230 (for personal use) / NT$ 6,480 yuan (for commercial use)
Locomotive – displacement 250cm3: vehicle license tax NT$ 800
Important Notes:
- Do not pay late! 1% of the original payment will be levied for every 2 days overdue, and a maximum of 15% will be levied! If the vehicle license tax has not been paid in full, a fine will be issued if the driver is pulled over, or if the vehicle is seized.
- If you drive an electric vehicle or electric scooter, you will be exempt from the vehicle license tax before December 31, 2021.
- If you wish to make alterations to your car, such as engine alterations or the seat frame, you need to apply and register with the relevant department, and pay the vehicle license tax according to regulations. Otherwise, it will be regarded as a transfer license, and you will be required to pay at most two times of the amount in the form of a fine if discovered.
For more information about the vehicle license tax, please visit: Ministry of Finance eTax Portal
(3) Fuel Tax
The fuel tax is a fee levied based on the exhaust volume of a car.
- Vehicles for personal use: Fuel tax needs to be paid once every July
- Business vehicles: Fuel tax is paid four times a year in March, June, September, and December
The method of paying the fuel tax is simple. You have the following options:
Online payment: log in to the supervision service network to fill in the form, or download the app, and you will be able to pay by credit or debit card
Over-the-counter payment: You can take a paper payment notice, and pay in person at a supermarket (Uni-President, Family Mart, Hi-Life, OK Mart), post office or various district management offices.
Telephone payment: You can use the voice transfer function of the telephone to call the service hot-line 412-1111, 4126666 (for the 6-digit area of the telephone number, please dial 41-6666 or 41-1111), service code 169#
Bank transfer: Using the following bank entities and network ATMs, enter the debit number to complete the payment procedure. Bank ATM Codes
More information: Motor Vehicle Driver Information Service
(4) Licensing Fee
You need to pay a licensing fee when buying a new car. You can go to the district motor vehicle driver office to pay and complete the relevant formalities.
Required documents:
National ID Card, or residence permit
2 new registration forms (need to be stamped with a seal)
Automobile factory certificate or import certificate
Excise Tax Payment Certificate
Uniform invoice for vehicle purchase
Compulsory automobile liability insurance certificate (Validity period needs to be within 30 days)
Proof of completion of anti-theft identification code
Payments:
(1) Vehicle inspection fee
Large car: NT$ 600
Small car: NT$ 450
Scooter: NT$ 200
(2) Vehicle numbering fee
General vehicle: NT$ 600
Vehicles under 550cc.: NT$ 300
550cc scooter: NT$ 400
(3) Vehicle license
General cars: NT$ 200
Scooters: NT$ 150
