According to the National Taxation Bureau of Kaohsiung, Ministry of Finance, if a person scraps a motorcycle with a cylinder displacement of 150 cubic centimeters or less (hereinafter referred to as a used motorcycle) that was manufactured more than four years ago, purchases a new electric motorcycle within six months after the date of scrapping, and completes the registration of a new license, the new electric motorcycle shall be exempt from the commodity tax as the new electric motorcycle meets the requirements of Article 12-3 of the Commodity Tax Act. Thus, the person can no longer apply for a refund of the reduced commodity tax for the replacement of old with new motorcycles.
The Bureau explained that according to Article 12-3 of the amended Commodity Tax Act, from January 1, 2022 to December 31, 2025, purchasers of electric vehicles powered entirely by electricity, with registration completed, are exempt from paying the commodity tax levied on such vehicles. Thus, if a person scraps a used motorcycle and buys a new electric motorcycle, the new electric motorcycle will no longer be subject to the tax refund for replacement of old with new motorcycles under Article 12-5 of the Commodity Tax Act because the new electric motorcycle has already exempt from the commodity tax.
The Bureau further explained that in order to encourage the scrapping or export of used motorcycles and the replacement with new gasoline fueled motorcycles, promoting the development of related industries and energy conservation and carbon reduction, the applicable period for the reduction and refund of commodity tax on new gasoline fueled motorcycles has been extended to January 7, 2026.
Therefore, if a person scraps or exports a used motorcycle, purchases a new gasoline fueled motorcycle within six months before or after the scrapping or export, and completes the registration of a new license, he/she can apply for a refund of the commodity tax on the new gasoline fueled motorcycle, as the commodity tax is reduced by a fixed amount of NT$4,000 per motorcycle. If there are any questions, the public can call the toll-free service number 0800-000321, and the Bureau will do its best to serve.
Contact: Mrs. Lin, Head of the third Examination Division
TEL:07-7256600 ext.8610