Seoul City Sends Out 'Annual Car Tax Payment Notices'... 10% Reduction in Tax Amount

1.23 Million Annual Car Tax Prepayment Notices Sent, Totaling 270.1 Billion KRW... Dispatched Nationwide on the 13th
Electric Vehicle Annual Car Tax Set at 100,000 KRW, Additional 9,150 KRW Discount for Prepayment

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 12th that it will simultaneously send the annual automobile tax prepayment notices to car owners on the 13th this year.

According to the Local Tax Act, automobile tax is imposed and notified in June (first installment) and December (second installment), but if car owners pay the automobile tax in a lump sum in January, they can save 10% of the tax amount due from the 1st of the following month until the end of the year.

The reporting and payment period for the January annual automobile tax is from the 16th to the 31st, but this year, since the deadline coincides with the Lunar New Year holidays, reporting and payment can be made until February 3rd, the day after the holidays.

As of the end of last year, there are 3.17 million registered vehicles in Seoul. Among them, 1.23 million vehicles will receive the annual automobile tax prepayment notices this time, with a total payable tax amount of 270.1 billion KRW. Accordingly, the annual automobile tax prepayment target accounts for 38.8% of the total registered vehicles and 43.8% of this year’s collection target (budget) of 616.4 billion KRW.

The January annual payment benefit for automobile tax varies depending on the vehicle's engine displacement. For example, the tax benefit for a newly registered K9 with a 3342cc engine displacement is 79,500 KRW, while for a newly registered SM3 with a 1598cc engine displacement, the tax benefit is 26,610 KRW.

Electric and hydrogen vehicles, which are representative eco-friendly cars, have been increasing in number every year. As of the end of December last year, the total number of registered vehicles in Seoul was 43,009 (40,564 electric vehicles and 2,445 hydrogen vehicles). Unlike internal combustion engine vehicles whose tax is based on engine displacement, the automobile tax for electric and hydrogen vehicles is a fixed rate of 100,000 KRW. Additionally, with the annual tax deduction of 9,150 KRW applied, the tax burden for electric and hydrogen vehicles can be further reduced.

This year’s annual automobile tax prepayment notices will be sent to taxpayers who prepaid last year or applied for prepayment this year to facilitate citizens’ tax payment convenience. The scale of the annual automobile tax prepayment notices sent increased by 20,000 vehicles from last year’s 1.21 million vehicles and 268.5 billion KRW to a total of 1.23 million vehicles and 270.1 billion KRW this year. The total tax deduction amount for the 1.23 million vehicles receiving the annual automobile tax prepayment notices this time reaches 27.2 billion KRW.

Choi Han-cheol, head of the Taxation Division, said, "I hope many citizens can benefit from tax savings through the automobile tax prepayment system during these difficult times due to COVID-19."

This content was produced with the assistance of AI translation services.