Starting from January 1, 2015, vehicles for persons with disabilities are exempted from tax for the portion under the threshold of 2,400 cc. Moreover, there are new restrictions on the degree of kinship. Vehicles owned by third-degree relatives (inclusive) and above are no longer qualified for tax exemption in accordance with the new tax regulation.

The Legislative Yuan amended the Article 7 of Vehicle License Tax Act in June 2014, stipulating the conditions (in terms of number of cylinders and degree of kinship) to apply for exemption of license tax for vehicles used by persons with disabilities. It is hoped to keep the tax lawsin fairness and justice, said Local Tax Bureau of Taichung City Government.

Local Tax Bureau explained further that a vehicle for a person with disabilities is exempted from license tax for the portion under 2,400 cc or NT$11,230 as a ceiling. The displacement of cylinder (number of cc) exceeding this threshold is not exempted. For example, a vehicle with a total displacement of cylinder at 4,200 cc should be levied with a license tax of NT$28,220, which would be entirely exempted before amendment of the law. However, the vehicle owner is required to pay NT$16,990 (28,220 - 11,230=16,990) after amendment of the law. Regarding the restriction on the degree of kinship, it is stipulated that if the holder of a disability manual does not have a driver license, he or she can apply for exemption from license tax for only one vehicle owned by him or her, his or her spouse, or a second-degree relative registered in the same domicile. For example, the vehicle owned by a nephew of the person with disabilities registered in the same household would be exempted from license tax in 2014 but should be levied with license tax according to the latest requirements effective from January 12015 onwards, because a nephew is a third-degree relative to the person with disabilities.

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