Korea Introduces Tax Relief Program for Vehicle Owners
In a positive move aimed at alleviating financial pressure on citizens, Korea has announced a tax relief initiative that offers a 5% deduction on annual motor vehicle taxes. This decision, unveiled by the Ministry of the Interior and Safety on the 10th, is designed to support taxpayers during challenging economic times.
Details of the Tax Relief
This tax relief follows the approval of a local government tax amendment discussed during a Cabinet meeting last year. Vehicle owners who opt to pay their motor vehicle taxes in a single lump sum this year will benefit from the 5% discount—a continuation of a similar measure that was enacted last year. Typically, the government divides motor vehicle taxes into two installments due in June and December. However, individuals who choose to pay the entire tax amount upfront in January will see a reduction in their overall payments.
Flexible Payment Options
Taxpayers have several opportunities to apply for annual payment of their motor vehicle taxes. Applications can be made not only in January but also in March, June, and September. The window for reporting and payment runs from the 16th to the end of each month. Taxpayers can complete the process by visiting their local city, county, or district office or by accessing the WiTax website. In Seoul, the process is also available through the iTax platform.
Government Statement: Han Soon-ki, the director of the local government finance department at the Ministry of the Interior and Safety, emphasized, “We maintained the 5% deduction rate for this year’s annual motor vehicle taxes to help ease the financial burden on households by slightly reducing the tax burden on vehicles closely related to the lives of the people.” This proactive step by the government aims to provide tangible relief to households, highlighting a commitment to support citizens during difficult economic times.
You might also want to know about the major tax breaks for 2025 in South Korea.
