The National Taxation Bureau of the Central Area, Ministry of Finance stated that, to continue promoting energy-saving and carbon-reduction policies, Article 12-5 of the Commodity Tax Act was amended and promulgated on September 5, 2025. In addition to extending the implementation period of the tax reduction and refund measures for replacing old used cars and motorcycles with new ones until December 31, 2030, the amendment also introduces new provisions: a maximum tax reduction of NT$50,000 per vehicle for the purchase of new small passenger cars with an engine displacement of 2,000cc or less (hereinafter referred to as “new small passenger cars”), and a maximum tax reduction of NT$2,000 per vehicle for motorcycles with an engine displacement of 150cc or less (hereinafter referred to as “new small motorcycles”), benefitting citizens who buy new vehicles.
The Central District National Taxation Bureau explains that for individuals who purchase a new small passenger car or a new small motorcycle (hereinafter referred to as “new small vehicles”), as long as the new vehicle is registered with license plates on or after September 7, 2025, they can enjoy a reduction and refund of the vehicle commodity tax of NT$50,000 and NT$2,000, respectively. Additionally, if the vehicle also meets the requirements for the old-for-new replacement vehicle tax reduction and refund, an extra commodity tax refund of NT$50,000 and NT$4,000 can be applied for. After combining the new small vehicle purchase tax reduction and the old-for-new replacement tax refund, the maximum refund is capped at the actual commodity tax payable for the new vehicle, reaching up to NT$100,000 and NT$6,000, respectively. For vehicles eligible for the tax refund, the manufacturer or importer must apply for the refund with the local National Taxation Bureau or the customs office at the place of import.
The bureau urges that if members of the public plan to purchase a new car or motorcycle, they should take advantage of the relevant tax refund incentives to protect their own rights and interests. For related information, please visit eTax Portal, Ministry of Finance (Chinese Version) / Tax Information / Reduced Commodity Tax for the Purchase of New Vehicles and Trade-In Replacement/ the dedicated sections for “Purchasing New Small Cars (Motorcycles)” and “Trade-in for New Cars(Motorcycles) commodity Tax Reduction. ”(Website:https://www.etax.nat.gov.tw/etwmain/tax-info/replace-vehicle-reduced-commodity-tax/purchase-vehicle-reduced-commodity-tax-refund-area).
If you have any questions, please call the toll-free service number 0800-000321 for consultation, and we will do our best to serve you.
Contact person: Sales Tax Division, Mr. Liang Yung Lung
Tel:(04)2305-1111 ext. 7565.