For Profit-Seeking Enterprises Scrapping Old Large Vehicles and Buying New Ones, the Commodity Tax Refund for the New Vehicles Should be Included in the Income Tax Return of the Acquisition Year.
(Taichung News) The National Taxation Bureau of the Central Area, (NTBCA) said that in order to speed up the replacement of old large vehicles in order to prevent air pollution, the Government has amended Article 12-6 of the Commodity Tax Act, such that anyone who scraps old large vehicles and purchases new ones must meet certain conditions in order to apply for a reduced tax refund. The refund amount is up to NT$400,000 per vehicle.
The Bureau stated that the amendment of Article 12-6 of the Commodity Tax Act came into effect on June 15, 2019. From August 18, 2017 to December 31, 2022, those who scrap stage 1~3 (diesel vehicle pollutant emission standards) of large passenger vehicles, large trucks, large passenger-cargo cars, substitute buses, large special vehicles (including tractors), and who then purchase new large vehicles and complete the new license plate registration may apply for a tax refund for the new large vehicles. The manufacturer or importer shall apply for a tax refund with the National Taxation Bureau or the Customs Office at the place of import within six months from the day when the old large vehicle was scrapped or the day when the new license plate registration for the new large vehicle was completed, whichever occurs later. After verification and approval, the tax refund shall be paid by direct transfer or by mailing a check to the actual purchaser of the new car (that is, the actual owner of the vehicle who purchased the new car).
The Bureau especially wants to remind the public that the tax refund for the actual purchaser of the new car is in the nature of a government subsidy. A profit-seeking enterprise receiving a subsidy should incorporate the subsidy into its annual income amount of the acquisition year according to Article 24 of the Income Tax Act. Any necessary costs and expenses can be recognized.
For more information, you are welcome to call our toll-free telephone number: 0800-000321. NTBCA will serve you with all sincerity.
(News offered by Ms. Shu-Chuan Lin, Revenue Officer, Third Examination Division, National Taxation Bureau of the Central Area, M.O.F. Tel: 04-23051111 ext. 7311.)