The definitions of terms used in this Act are as follows:
1.Public water and land routes: water and land traffic routes for public use.
2.Transportation equipment: motor vehicles and vessels.
3.Total cylinder displacement volume: the product of the cross-sectional area of a cylinder, piston stroke, and number of cylinders.
4.Military T/O transportation equipment: transportation equipment such as command vehicles, motor truck, combat vehicles, communication vehicles, and vessels required to be equipped by various units within the military equipment establishment, excluding the vehicles of military administrative agencies or schools outside the military T/O transportation equipment.
5.Public hospitals: public hospitals and the hospitals established by the organizations registered to the government.
6.Assembled transportation equipment: transportation equipment assembled from parts of domestic- or foreign-made vehicles, capable of being driven.
7.Using non-transportation equipment: equipment, not classified as vehicles, utilizes its properties of mobility and others functions to operate as vehicles, such as an agricultural tiller designed for agricultural use, utilizing its engine and other components to be configured as resembling cargo or passenger vehicles.

Transportation equipment using public land or water routes, regardless of whether they are for public, private, or military use, must comply with other relevant laws, obtain permits and pay prescribed fees. The owners or operators of such transportation equipment shall apply to the competent authority at their location for the issuance of vehicle license and pay vehicle license tax.
The aforementioned vehicle license may be replaced by a license plate issued by the traffic management authority.
The vehicle license tax shall be collected by the competent tax authorities of municipalities directly under central government and counties (cities). When necessary, municipal and county (city) governments may, with approval, commission local traffic management authorities to collect taxes and issue permits uniformly.

The following types of transportation equipment are exempted from Vehicle license tax:
1.Military T/O transportation equipment.
2.Vessels navigating in areas where customs are stationed and have already paid navigation service fees collected by customs.
3.Transportation equipment used exclusively for the purpose of public safety with fixed special equipment and distinctive markings, such as police vehicles, investigation and inspection vehicles, fugitive pursuit vehicles, fire engines, engineering rescue vehicles, and maritime rescue vessels.
4.Transportation equipment used exclusively for the purpose of public health by hospitals established by health authorities and public organizations, equipped with fixed special equipment and distinctive markings, such as ambulances, medical service vehicles, water spraying vehicles, water and fertilizer vehicles, and garbage trucks.
5.Transportation equipment for diplomatic missions and personnel enjoying diplomatic privileges, approved by the Ministry of Foreign Affairs and issued special license plates by traffic management authorities.
6.Transportation equipment exclusively for the transportation of telecommunications mail, equipped with fixed special equipment or distinctive markings.
7.Transportation equipment specifically for educational and cultural promotion tours, equipped with fixed special equipment and distinctive markings.
8.Vehicles owned by and for the use of individuals holding disability certificates or proofs, and possessing driver's licenses, limited to one vehicle per person with mental or physical disabilities; in cases where the mental or physical disability prevents the individual from holding a driver's license, vehicles owned by the individual, spouse, or relatives within the second degree of kinship from the same household, limited to one vehicle per person with mental or physical disabilities. However, for vehicles with a total cylinder displacement volume exceeding 2400 cubic centimeters, or with electric motors with a maximum horsepower exceeding 262 horsepower (HP) or 265.9 metric horsepower (PS), the exemption amount is limited to the tax amount for vehicles with 2400 cubic centimeters, 262 horsepower (HP), or 265.9 metric horsepower (PS). The excess amount shall not be exempted.
9.Vehicles designated for use by registered social welfare organizations and institutions, certified by local social welfare authorities, limited to three vehicles per organization or institution. However, social welfare organizations and institutions transporting persons with mental or physical disabilities or serving long-term care needs with legally installed fixed auxiliary equipment and distinctive markings, upon approval by municipal and county (city) governments, are exempt from the three-vehicle limit.
10.Public buses owned by licensed highway or urban passenger transport service enterprises and approved by traffic management authorities for mass transportation use.
11.Transportation equipment licensed for use in the applicable regions under the Offshore Islands Development Act. However, exemption shall not be granted for passenger vehicles with a total cylinder displacement volume exceeding 2,400 cubic centimeters, or with electric motors providing maximum horsepower exceeding 262 horsepower (HP) in the imperial system or 265.9 metric horsepower (PS).
The transportation equipment exempted from license tax in the preceding clauses shall apply for exemption procedures before use, and shall not be transferred, modified, reestablished, or change the nature of use without approval from traffic management authorities.

Any newly purchased, newly imported, or newly assembled transportation equipment shall apply to the traffic management authority for registration inspection procedures with the attachment of importation or other origin documents. After passing the inspection, the applicant shall submit the qualified registration inspection certificate along with the aforementioned documents to the competent tax authority for verification of conformity in type and usage nature. After processing the payment of the current Vehicle license tax, the applicant shall then present the tax receipt and all documents to the traffic management authority to obtain license plates.
Transfer registration procedures shall not be processed for transportation equipment until the Vehicle license tax and fines have been paid in full.
When applying for transfer of ownership or reinstatement of use for a transportation equipment that has been reported as suspended, the traffic management authority shall only accept the application after verifying the payment of the current Vehicle license tax and shall notify the relevant tax authority of any related changes.

The owner or user of the licensed transportation equipment, who does not intend to use the transportation equipment, shall apply to the traffic management authority for suspension of use. The tax amount for the period of use shall be calculated based on the actual number of days of usage. Upon resuming usage, the tax amount shall be calculated by subtracting the tax amount for the elapsed period from the annual tax amount.
The transportation equipment that do not apply for suspension of use shall be deemed as continued usage, and the Vehicle license tax shall continue to be levied in accordance with this Act.

When changes such as replacing parts or altering seat frames occur in the transportation equipment already licensed for use, the owner or user of the transportation equipment shall proceed with the necessary changes through the traffic management authority. If the tax amount remains the same before and after the change, no additional tax shall be levied. If the transportation equipment, originally exempt from tax or subject to a lower tax rate, is changed to a taxable status or a higher tax rate, the additional tax amount for the difference shall be calculated on a daily basis. Conversely, if the transportation equipment, originally taxable or subject to a higher tax rate, is changed to an exempt status or a lower tax rate, the tax amount for the difference shall be refunded on a daily basis.
Failure of the owner or user of the transportation equipment mentioned in the preceding paragraph to proceed with the necessary changes through the traffic management authority, and failure to pay the required taxes as stipulated, shall be considered as a transfer of the license for another use.

When transferring ownership of the transportation equipment already licensed for use, the transfer of ownership shall be registered with the traffic management authority as stipulated.
Following the transfer of ownership of the transportation equipment, if the nature of use changes from originally exempt from tax or subject to a lower tax rate to taxable status or a higher tax rate, the tax amount for the difference shall be calculated on a daily basis and paid by the new owner or user. Conversely, if the transportation equipment, originally taxable or subject to a higher tax rate, changes to exempt status or a lower tax rate, the tax amount for the difference shall be calculated on a daily basis and refunded by the tax authority. Failure to comply with the stipulated procedures for transfer of ownership and failure to pay the required taxes as stipulated shall be considered as a transfer of the license for another use.

Using non-transportation equipment as general transportation equipment on public water and land routes shall be handled by the transportation management authority in accordance with the provisions of the Road Traffic Management and Penalty Act.