Tax Subsidies Available for Replacement of Old Vehicles


Taiwan’s vehicle recyclers now offer a home collection service, which along with the tax rebates and subsidies available is another reason for residents to replace their old vehicles. In fact, when adding up the EPA’s vehicle recycling subsidy, the commodity tax reduction for replacing an old vehicle with a new one, the taxes saved by recycling the old vehicle, and the salvage value of the old vehicle, replacing an old vehicle with a new one may save owners over NT$66,000.

Vehicle owners should give their old vehicle to a licensed recycler and obtain the end-of-life vehicle recycling manifest issued by the EPA. If the owners buy and register a new vehicle within six months before or after recycling their old ones, they will be eligible for a commodity tax deduction for the new vehicle and the recycling subsidy for the old one. The tax reductions are NT$50,000 and NT$4,000 for cars and motorcycles, respectively. The vehicle recycling subsidies are NT$1,000 for cars over 10 years old and NT$300 for motorcycles over seven years old. To receive the tax rebate and recycling subsidy, the owners simply need to collect the copies of the vehicle recycling manifest and the vehicle title transfer form and file the applications with the Ministry of Finance for the tax rebate and with the EPA for the recycling subsidy.

There is also an extra NT$1,500 available for the recycling of 2-stroke motorcycles. The EPA and local environmental protection bureaus also provide subsidies for purchasing new electric motorcycles and electric bicycles. In addition, recyclers often pay the owners a few thousand New Taiwan Dollars depending on the vehicle’s condition.

The EPA pointed out that abandoning or keeping but not using an old vehicle can cost owners nearly NT$16,000 annually in vehicle registration fees, fuel tax, and fines for not taking it to regular vehicle tests. If the vehicle is reported for occupying road space, it may be towed away and its owner served a notice and instructed to claim it in accordance with the Definition and Regulations for Handling Road-Occupying Abandoned Vehicles. If the vehicle is not claimed then it will be disposed of, and the owner will not be able to claim the commodity tax rebate or any subsidies, which is clearly not to the owner’s advantage. The EPA is urging all owners of old cars to replace them with new ones and save at least NT$66,000.

Recycling old vehicles consists of two steps:

Step 1 – Finding a recycler: The EPA provides information on registered recyclers over the toll-free resource recycling hotline 0800-085-717 and on the resource recycling website Vehicle owners can make an arrangement with the recycler for the time and place to collect the old vehicle. The owner’s ID card number or company’s VAT number, and a copy of the vehicle license or the vehicle title transfer certificate should be given to the recycler to verify the ownership.

Step 2 – Collecting the subsidy: The recycler will give the vehicle owner a copy of the vehicle recycling manifest, which the owner can use to apply for the EPA subsidy.

As for the regulations governing the reduction in new vehicle commodity tax for recycling or exporting old automobiles and buying new vehicles, consumers can find them on the websites of the MOF ( or the MOF’s Taxation Administration ( Enquiries are dealt with through the National Taxation Bureau’s toll-free hotline 0800-000-321. Owners of old 2-stroke motorcycles can visit the EPA’s Low Pollution Vehicle Subsidy Information website ( for details.

Environmental Protection Administration, R.O.C.(Taiwan)
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