Goyang City’s Expanded Automobile Acquisition Tax Reduction for Families with Multiple Children Receives Positive Response

Tax Reduction Benefits Now Extended to Families with Two or More Children
Providing Tangible Relief for Financial Burdens

Goyang Special City in Gyeonggi Province (Mayor Lee Donghwan) announced on September 2 that the expanded automobile acquisition tax reduction program for families with multiple children, implemented since January of this year under Article 22-2 of the Restriction of Special Local Taxation Act, has received a strong positive response from citizens.

A view of Goyang Special City Hall. Photo by Jesong, Goyang Special City

Previously, only households with three or more children under the age of 18 were eligible for the tax reduction, but starting this year, the benefit has been extended to families with two or more children.

From January to August of this year, there were 1,020 applications for the tax reduction from families with two children, indicating that the program is providing tangible relief for the financial burden faced by these households.

In particular, for families with two children who purchase a passenger vehicle with six seats or fewer, if the acquisition tax exceeds 1.4 million won, up to 700,000 won is deducted. For vehicles with an acquisition tax of 1.4 million won or less, as well as other types of vehicles (passenger vehicles with seven to ten seats, vans with up to 15 seats, and cargo trucks with a capacity of up to one ton), 50% of the acquisition tax is reduced.

For families with three or more children, the existing benefit remains unchanged, with a 100% reduction in automobile acquisition tax (up to 1.4 million won for passenger vehicles with six seats or fewer). However, only one vehicle registered by a parent raising multiple children is eligible for the reduction, and if the vehicle receiving the benefit is transferred within one year of registration, the previously reduced acquisition tax will be collected retroactively.

Citizens wishing to receive the tax reduction must submit both the local tax reduction application form and a certificate of family relations (for the applicant) when reporting their automobile acquisition tax. If eligible applicants did not receive the reduction at the time of registration, they may still apply for the benefit retroactively.

An official from the Vehicle Registration Division stated, "We hope that the automobile acquisition tax reduction for families with multiple children will help ease the financial burden on these households," adding, "We will continue to do our best to address the low birth rate and support families with multiple children."