Article 5
Vehicle license tax shall be levied based on the type of transportation equipment. Except for motor vehicles which are taxed by their category and grade classified by total cylinder displacement volume or other power-operated vehicles and vessels which are taxed by their tonnage in accordance with Article 6 herein, the tax rates for other transportation equipment shall be set forth by the municipal or county (city) government, approved by the municipal or county (city) council, and reported to the Ministry of Finance for record. The municipal or county (city) government is authorized to exempt completely electric-operated vehicles from the vehicle license tax for the following periods of time, and report them to the Ministry of Finance for record. (1) Completely electric-operated vehicles: from January 6, 2010 to December 31, 2021. (2) Completely electric-operated motorcycles: from January 1, 2018 to December 31, 2021.

Article 6
The vehicle license tax on all types of transportation equipment shall be levied according to the following provisions:
(1) Motor vehicles: Motor vehicles are classified into four categories – small passenger vehicles, large passenger vehicles, trucks, and motorcycles, and taxed according to the vehicle license tax rate charts for motor vehicles set forth herein (see attached tables).
(2) Vessels: The license tax for vessels over 5 tons will be NT$16,380 a year for commercial vessels, and NT$40,320 a year for non-commercial vessels; the license tax for vessels less than 5 tons will be NT$9,900 a year for commercial vessels, and NT$17,550 a year for non-commercial vessels.

Article 7
The following types of transportation equipment are exempted from vehicle license tax:
(1) Military T/O transportation equipment.
(2) Vessels which are navigating within the jurisdiction of a customs house and on which the tonnage levies have been collected by said customs house.
(3) Vehicles having special equipment and special marking and used exclusively for public safety purpose, such as police squad cars, detective and investigation unit cars, vehicles used for transporting prisoners, fire engines, specialized relief vehicles, and ocean rescue vessels.
(4) Vehicles having special equipment and special marking belonging to sanitation agencies or public hospitals and used exclusively for public health purposes, such as ambulances, hospital vehicles, water spraying vehicles, sewage trucks and refuse collection vehicles.
(5) Cars owned by foreign nationals who are accorded diplomatic privileges, provided approval has been granted by the Ministry of Foreign Affairs and special license has been obtained from the transportation authorities.
(6) Specially equipped or specially marked vehicles used exclusively for transport of mails.
(7) Specially equipped and specially marked vehicles used exclusively for the promotion of education and culture.
(8) For Vehicles used by a mentally or physically disabled person who carries a Mental/Physical Disability Manual or certificate issued by the authorities and has obtained a driver’s license, limited to one vehicle per person; for a mentally or physically disabled person who does not have a driver’s license due to mental or physical condition, and the vehicle is owned by himself/ herself, his / her spouse or a second-degree relative in the same household and which is to be used for the mentally/ physically disabled person, one vehicle per disabled person. However, vehicles with a total cylinder displacement volume of over 2400 cubic centimeters, and completely electric-operated with a maximum HP over 262 or PS over 265.9 shall be exempted from the amount of tax for 2400 cubic centimeters, 262 HP or 265.9 PS.
(9) Vehicles owned and used exclusively by social welfare institutions or organizations which have an identification document issued by social welfare authorities; up to three vehicles for each social welfare institution or organization. However, vehicles with fixed assisting equipment to carry disabled persons and those who need long-term care, as well as a particular sign showing exclusive use by social welfare institutions or organizations which have an identification document issued by the social welfare authorities and authorized by the municipal or county (city) government; more than three vehicles now are allowed be exempted from the vehicle license tax for each social welfare institution or organization.
(10) Buses used exclusively for mass transportation and owned by highway passenger service or urban passenger service enterprises established with the approval of the competent authority.
(11) Transportation equipment driven in districts to which the Statute for Offshore Island Development applies and having a vehicle license issued by the local transportation authority. However, small passenger vehicles with total cylinder displacement volume over 2400 cubic centimeters , completely electric-operated with a maximum HP over 262 or PS 265.9 are excluded.
The tax-exempt transportation equipment specified in the preceding paragraph shall have completed the tax exemption formalities before use, and may not be transferred, refitted, relocated or change its purpose of use without the approval of transportation authorities.

Article 9
Vehicle license tax shall be collected in the following manners:
(1) The tax on automobiles is collected once a year, but that on commercial vehicles may be collected in two payments.
(2) The tax on motorcycles and other transportation equipment is collected once a year.

Article 11
Tax on a temporary license or an automobile testing license of the owner or user of a vehicle shall be calculated on a daily basis. Tax due for vehicles with temporary license shall be determined by the median of tax rates applicable to all types of vehicles prescribed in the Article 6 tables herein; Tax due for vehicles with license for testing shall be determined by the highest rates prescribed for cars and motorcycles.

Article 38
This law shall be in force from the date of promulgation. However, Article 7, amended on May 30, 2014 and attached table 5 of Article 6 amended on November 14, 2016 shall take effect on January 1 of the year following the publication date on which the amendment came into effect.