January is annual car tax payment month.
1. Car tax
If you own a vehicle, you must pay the automobile tax. This is the tax you must pay if you own the vehicle even if it does not move even 1 meter. This is a local tax levied based on the vehicle’s engine displacement and paid to local governments.
The charging standards may differ slightly depending on the region you live in, so please check carefully to see if you receive a bill before paying.
In order to save even a little on taxes, you must apply for annual payment in January.
The annual automobile tax payment system is a system that provides a partial tax discount if you pay the automobile tax, which is paid twice every year in June and December, in a lump sum.
The principle of automobile tax is to be paid later, but it is a good system that provides a partial tax discount when paid in advance and paid in full, so it is one of the taxes that must be taken care of. I think this is a legal way to reduce taxes in everyday life.
This year’s deduction rate is 5% (actual deduction rate is 4.58%), which applies the discount from February to December, excluding January.
This is because the actual deduction rate is the automobile tax actually paid plus the local education tax (30%).
Car tax is a tax that is basically applied on a deferred payment system after you own the car, so when you purchase a new car, transfer ownership, or scrap the car, it is collected on a pro-rata basis based on the registration date of ownership transfer.
The annual automobile tax discount amount is gradually decreasing every year from 10% in 2022, which is disappointing.
Please give a discount for multiple children :)??
Please note that if you do not pay taxes by the due date, you may be subject to additional fines and seizure.
XC40 Inscription
2. Application period for annual automobile tax payment
Application for annual automobile tax payment can be made in January, March, June, and September, and payment can be made a total of four times a year.
By paying your automobile tax in the future and receiving tax benefits, applying for annual automobile tax payment in January will give you the highest discount rate.
Application dates are from the 16th to the 31st of each month. Application times vary depending on weekdays, Saturdays, and the last day of each month. Applications cannot be made on public holidays, so please refer to this before applying.
Application date – January: 16th ~ 31st
March: 16th to 31st
June: 16th to 31st
September: 16th to 31st
Application time – Weekdays: 07:00 – 22:00
Saturday: 07-15:00
Last day of every month: 07-19:00
I’m off on public holidays.
3. Standards for imposing automobile tax
The standards for imposing automobile tax are detailed in the automobile tax Giro form delivered to your home.
Quoting the contents of the paper,
Basis for imposing automobile tax: Articles 124 – 134 of the Local Tax Act
Taxpayer: Owner on the automobile registration register as of June 1st and December 1st of each year.
Payment and collection: Divide the tax exemption amount into 1/2 amount and collect it twice a year (June and December)
(However, if the tax-exempt amount is less than 100,000 won, the full amount will be collected in the first period)
| Category | Tax base date | Tax period | Payment period |
| 1st mood | June 1st every year | January 1 – June 30 | June 16 – June 30 |
| Second mood | December 1st every year | July 1 – December 31 | December 16 – December 31 |
4. Tax base and tax according to automobile emission rate
Automobile tax is levied based on CC.
There are still many discussions about the tax structure.
There are a variety of vehicle prices within the same engine displacement, ranging from 20 million won to 100 million won, but since the tax amount imposed is the same, some say it is not fair and should be based on the vehicle value.
However, there is controversy over whether it is double taxation if the automobile tax is also based on the amount of tax levied on the purchase of a vehicle. In addition, there was discussion about changing the standard to carbon dioxide emissions, but the discussion was postponed due to opposition from the automobile industry.
Tax levied by engine displacement
Electric vehicles without CC are subject to education tax and a lump sum tax of 130,000 won.
Golf 7th
5. Deduction rate according to annual automobile tax payment
Since the deduction period varies depending on the automobile tax application period, the deduction rate also varies.
The reason January shows the highest deduction rate is because it has the largest deduction period.
For reference, we also attached the automobile tax reduction rate depending on the model year 🙂
6. How to apply for annual automobile tax payment
You can apply for automobile tax online or through the Wetax application.
When applying offline, you can visit the automobile tax department of the local government or make a phone call. Online address: https://www.wetax.go.kr
Please also refer to the application method and precautions at Witax!
Those with an address in Seoul can apply for ETAX or mobile app STAX/Customer Center at 1566-3900.
In conclusion
If you apply for annual payment in January, you will automatically receive an annual payment application notice from the following year. In addition, if you apply in March, June, or September, automatic extension is not possible.
Don’t miss out on applying for annual car tax payments and be sure to save money!
I attach the back of the automobile tax bill sent to my home (based on Namdong-gu, Incheon Metropolitan City)