Uijeongbu City Grants 100% Exemption on Automobile Acquisition Tax for Families with Three or More Children for Three Years

City Expands Automobile Acquisition Tax Reduction for Multi-Child Families
50% Tax Reduction for Families Raising Two Children

Uijeongbu City, Gyeonggi Province (Mayor Kim Dong-geun) announced on the 31st that the automobile acquisition tax reduction benefits for multi-child families will be expanded starting from the new year.

A view of Uijeongbu City Hall. Provided by Uijeongbu City

With this revision, families raising two children can also receive a 50% reduction in automobile acquisition tax. Families raising three or more children will continue to receive a 100% exemption benefit for three years as before.

The two-child family tax reduction benefit can be applied for vehicles registered after the law is promulgated on January 1, 2025. To receive the reduction, applicants must submit the reduction application form along with a family relationship certificate when reporting the automobile acquisition tax.

The vehicles eligible for the automobile acquisition tax reduction benefit are △ passenger cars with engine displacement of 2000cc or less or seating capacity of 7 to 10 △ vans with seating capacity of 15 or less △ cargo trucks with a loading capacity of 1 ton or less △ motorcycles with engine displacement of 250cc or less.

Two-child families can receive a 50% reduction, and families with three or more children can receive a 100% reduction (with a 15% tax applied if the acquisition tax exceeds 2 million KRW).

However, for passenger cars with seating capacity of 6 or less, the maximum reduction benefit is 700,000 KRW for two-child families and 1,400,000 KRW for families with three or more children.

Additionally, persons with severe disabilities, national merit recipients (disability grades 1 to 7), victims of Agent Orange (mild or higher), and injured participants of the May 18 Democratic Movement, when registering vehicles under their name alone or jointly with family members, can receive a 100% acquisition tax exemption for △ passenger cars with engine displacement of 2000cc or less or seating capacity of 7 to 10 △ vans with seating capacity of 15 or less △ cargo trucks with a loading capacity of 1 ton or less △ motorcycles with engine displacement of 250cc or less.

Meanwhile, from January 1 of this year, the acquisition tax reduction benefit for hybrid vehicles has ended. The acquisition tax reduction for hybrid vehicles only applies to vehicles acquired by December 31, 2024, so taxpayers should be cautious.

When applying for the acquisition tax reduction, related documents must be carefully prepared to avoid omissions or mistakes, and care should be taken to prevent causes for additional taxation such as ownership transfer within one year after receiving the reduction.

In particular, acquisition tax may be reclaimed due to ownership transfer or household separation of vehicles that received the reduction benefit, so caution is required. More detailed information can be obtained from the city’s Automobile Management Division.

Choi Seong-cheol, head of the Automobile Management Division, said, “This revision was prepared so that more multi-child families, including those with two children, can benefit, focusing on solving the low birthrate issue and reducing the burden on citizens,” and added, “We will actively promote the acquisition tax reduction system so that taxpayers can effectively utilize it.”