Government to Disburse Nationwide in 2026! Scooter and Car Owners Can Claim Up to NT$100,000: Two Subsidies, Eligibility, Application Periods, and Procedures Explained

Car and scooter buyers looking to save money shouldn’t forget to apply! The current cargo tax reduction incentive for replacing old vehicles was originally set to expire in January 2026. To further encourage the scrapping or export of aging vehicles and to advance national green transportation and energy-saving carbon reduction policies, Taiwan’s Legislative Yuan recently passed the third reading of an amendment to Article 12-5 of the “Commodity Tax Act.” The tax reduction period for replacing old cars and scooters has now been significantly extended to December 31, 2030 (Minguo Year 119), with an additional incentive: buyers of new small cars and scooters can now receive tax rebates. Under the new policy, car owners replacing old vehicles can save up to NT$100,000, while scooter owners can save up to NT$6,000!

2026 Vehicle Replacement Subsidy! New Purchasers of Small Cars and Scooters Eligible for “Commodity Tax Reduction and Refund” – Full Eligibility Criteria

Previously, the commodity tax reduction program required applicants to scrap or export an old vehicle. Under the new policy, individuals purchasing a passenger car with an engine displacement of 2,000cc or less can receive a direct NT$50,000 tax reduction—even without an old vehicle to scrap. If consumers happen to own a qualifying old vehicle and choose to scrap it when purchasing a new car, both tax reduction benefits can be combined, allowing a maximum tax reduction of up to NT$100,000.

Vehicle Replacement Tax Rebate · Car Conditions: Replace an old vehicle (scrap or export an old car registered for at least 1 year and manufactured at least 10 years ago) with a new vehicle (purchase a new car and complete new license registration). The owner of the old and new vehicle must be the same person, spouse, or relative within the second degree of kinship. Maximum refund of NT$50,000 per vehicle. · Scooter Conditions: Replace an old scooter (scrap or export an old scooter manufactured at least 4 years ago with engine displacement of 150cc or less) with a new scooter (purchase a new scooter and complete new license registration). The owner of the old and new scooter need not be the same person. Maximum refund of NT$4,000 per vehicle.

Additional Incentive: Tax Rebate for New Small Vehicle Purchases · Car Conditions: Any passenger car with an engine displacement of 2,000cc or less purchased and registered by the end of 2030 is eligible for a NT$50,000 commodity tax reduction per vehicle. · Scooter Conditions: Any scooter with an engine displacement of 150cc or less purchased and registered by the end of 2030 is eligible for a NT$2,000 commodity tax reduction per vehicle.

Subsidy Stacking! Maximum NT$100,000 for Cars, NT$6,000 for Scooters The most attractive feature of this revised legislation is that the “new purchase tax reduction” can be stacked with the “old vehicle replacement subsidy.” By purchasing the right vehicle specifications and having a qualifying old vehicle to scrap, buyers can save a significant amount.

💰 [Tax Reduction Stacking Calculation by 2030] Cars under 2,000cc: Maximum savings of NT$100,000 → NT$50,000 from old vehicle replacement + NT$50,000 from new small car purchase = Total commodity tax reduction of NT$100,000

Scooters under 150cc: Maximum savings of NT$6,000 → NT$4,000 from old scooter replacement + NT$2,000 from new scooter purchase = Total commodity tax reduction of NT$6,000

2026 Car Replacement Tax Rebate Rules: Second-Degree Relatives Eligible! Six Key Eligibility Criteria for Commodity Tax Reduction

While the maximum NT$100,000 tax reduction is highly attractive, applicants must meet several government-defined eligibility requirements:

· Application Period: From September 7, 2025 (Minguo Year 114) to December 31, 2030 (Minguo Year 119). · Vehicle Age Limit: The scrapped old vehicle must be at least 10 years old. · Vehicle Ownership Period: The applicant must have owned the old vehicle for at least 1 year prior to scrapping. · Family Relationship: The owners of the new and old vehicles must be within the second degree of kinship (e.g., self, spouse, parents, children, siblings; same household registration not required). · Vehicle Specifications: Old vehicles must be small passenger cars, small trucks, or small passenger-cargo vehicles; new vehicles must be small passenger cars with engine displacement of 2,000cc or less. · Corporate Applications: If applying under a company name, both the old and new vehicles must be registered under the same company and cannot be registered under an individual. · Consumers can verify their eligibility via the Ministry of Finance’s “Self-Check Eligibility” portal.

Application Process: Must Be Within 6 Months, Dealers Can Apply on Behalf The application process for the vehicle replacement subsidy is straightforward. Applicants can choose to “scrap the old vehicle first, then buy a new one” or “buy a new vehicle first, then scrap the old one.” However, the time between scrapping (or exporting) the old vehicle and registering the new one must not exceed 6 months; otherwise, the applicant will lose eligibility.

I. New Vehicle Purchase 1. The dealership submits required documents to the National Taxation Bureau at the manufacturer’s location (for domestic vehicles) or to the customs office (for imported vehicles) to apply for a tax refund. 2. After review, the tax authority refunds the amount to the dealership, which then transfers it to the customer or directly deposits it into the new vehicle owner’s account.

Required Documents (copies acceptable; not required for online applications) 1. New license registration certificate 2. Commodity tax payment certificate for the new vehicle

II. Vehicle Replacement (A) Eligibility Criteria 1. For cars, the new and old vehicle owners must be within the second degree of kinship (same household not required; blood or marital relatives allowed). No such restriction for scooters. 2. Old vehicle age: at least 4 years for scooters, 10 years for cars. 3. For cars, the old vehicle owner must have held the vehicle for at least 1 year prior to scrapping. No ownership period requirement for scooters. 4. Companies can apply, but both old and new cars must be registered under the same company (not under the company representative’s personal name). 5. Eligible old vehicles: small passenger cars, small trucks, small passenger-cargo vehicles; for scooters, only those with 150cc or less engine displacement. New scooters must be non-electric.

(B) Application Process 1. Applicants may scrap the old vehicle before or after purchasing the new one, but the new vehicle must be purchased and registered within 6 months before or after the scrapping date (refer to attachment for retroactive calculation if purchased first). 2. The dealership submits documents to the National Taxation Bureau (domestic) or customs (imported) for tax refund application. 3. After review, the tax authority refunds the amount to the dealership, which then transfers it to the applicant or directly to the new vehicle owner.

(C) Required Documents (copies acceptable; items 1–6 not required for online applications) 1. Vehicle deregistration certificate issued by the motor vehicle authority, with “scrapping” as the reason 2. Recycling control triplicate form issued by an Environment Ministry-approved recycler 3. Copy of the old vehicle’s registration certificate (if reclaimed by authority, a stamp indicating ownership period may be used) 4. New vehicle registration certificate 5. Commodity tax payment certificate for the new vehicle 6. Household register copy of both new and old car owners (if different) 7. Declaration form stating different owners for old and new scooters (if applicable)

For more information on new vehicle purchases or vehicle replacement programs, visit the Ministry of Finance’s Tax Portal / Tax Information / New Vehicle Purchase and Vehicle Replacement Commodity Tax Reduction / Special Zone for “New Small Vehicle Purchase” and “Vehicle Replacement.”

Source: Ministry of Finance