Seoul City Offers 9.15% Tax Credit for Annual Car Tax Prepayment by the End of This Month

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government announced on the 13th that it is accepting applications for the annual prepayment of automobile tax, which is usually paid twice a year, until the end of this month. If the tax is paid in a lump sum in January, taxpayers can receive a 9.15% tax credit on the annual amount.

Applications for the 2021 automobile tax annual payment can be made by January 31 via phone, the 'ETAX' website, or the smartphone app (STAX). Annual prepayment of automobile tax can be applied for in January, March, June, and September each year. A 9.15% credit applies in January, 7.5% in March, 10.0% on the second half payment in June, and 5.0% in September.

For example, if the automobile tax is paid in a lump sum as an annual amount in January this year, new vehicles such as the SM3 can save 13,300 KRW, the Sonata 47,550 KRW, and the Grandeur 71,350 KRW on automobile tax (including local education tax), respectively.

Payment can be made by receiving the automobile tax bill sent by mail starting from the 13th or through the internet or smartphone app.

To facilitate taxpayers, the Seoul Metropolitan Government sent out automobile tax annual payment bills on the 12th for 1.21 million vehicles that either prepaid their automobile tax last year or applied for annual prepayment at district offices. This amount is approximately 198 billion KRW (50,000 vehicles) more than last year's 116 million vehicles and 249.2 billion KRW, totaling 268.5 billion KRW.

Last year, the annual prepayment rate of automobile tax among Seoul citizens was 38.7%, and both the number of cases and the tax amount for annual prepayment have steadily increased over the past three years.

If the automobile tax is prepaid, even if the taxpayer moves to another city or province within the year, they do not have to pay additional automobile tax at the new address. Also, if the vehicle is scrapped or transferred after the annual prepayment, the taxpayer can receive a refund for the unused period excluding the days the vehicle was used.