You may have heard of the application for annual car tax payment at least once. This is a tax that everyone who owns a car must pay, but as it is a time to save on vehicle taxes, some people may be wondering how to handle annual payments. Now, let’s check how to pay the differential car tax in installments and what the car tax discount rate is.
car tax
1. Subject to automobile tax
Automobile tax can be viewed as an ownership tax granted to people or corporate corporations that own vehicles. Because it is a local tax, not a national tax, different taxes are paid depending on the region. In addition, it is a deferred payment system in which the tax is assigned to the owner at the time after adding up the amount including the date of ownership, and payment is made twice every year in June and December. When levying taxes, differentiated taxes are paid depending on the vehicle’s engine displacement, and the automobile tax varies greatly between commercial and non-commercial automobiles.
Tax by CC
2. Automobile tax rates and discounts
Domestic automobile tax is levied differently depending on engine displacement. In the case of light vehicles, the lowest cost of 80 won is charged because it is less than 1000 CC, and for cars over 1000 CC but less than 1600 CC, 140 won is charged per CC. And anything over 1600 CC is unified into one and a tax of 200 won per CC is imposed. In Korea, taxes have been levied based on CC for a long time, but these days, as the number of imported cars increases, imported cars that are much more expensive than domestic cars sometimes pay less tax because their CC is lower, so there is an opinion that the car tax system should be changed to the vehicle price. I’m gaining strength. In addition, automobile tax is slightly discounted depending on the age of the vehicle. It decreases by 5% each year starting from the 3rd year after the vehicle was sold, and the discount goes up to 50% when it is 10 years old. After the 10th year, the 50% reduction rate is maintained, so there is no further automobile tax discount.
tax period
3. Discount conditions for annual automobile tax payment
In the past, there was a discount rate of about 10% because automobile tax costs a lump sum more than expected, but as automobile use becomes more and more essential, it appears that few people are aware of automobile tax anymore. Therefore, the discount rate for annual car tax paid at once in January is decreasing. There will be an annual payment discount of 5% from 2024, from 10% at first to 7% last year. If my car is new and the CC is high, it is better to get an annual payment discount even if I pay a lump sum, but if my car is old and the CC is low, the annual payment discount has relatively no merit. This is because if you get a 50,000 won discount on the 500,000 won automobile tax, it may be better to just pay it twice a year. Still, if you pay annually, you can still get a discount of several tens of thousands of won, so if you have a lump sum to spare, it is true that the annual payment discount is more economical.
Witex
4. How to apply for annual automobile tax payment
There are three ways to apply for annual automobile tax payment: You can pay by accessing the website via the Internet or smartphone, or you can contact the automobile department of the local government to make annual automobile tax payment, or you can make annual automobile tax payment by calling 1599-3900. You can also apply. The most representative way to pay taxes by receiving a discount on annual automobile tax payment is to pay automobile tax through the Internet. You can access Witax, apply for annual automobile tax payment, and pay the tax. The annual payment discount is greatest in January, and the benefit of annual payment decreases as each month passes, so if you decide to make annual payment, it is best to pay within January and February.
If you would like to access Witex and make annual payments, you can do so through the link below.