65 Million Won Palisade Hybrid: How Much Would You Save After Considering Taxes?

Jul 25, 2026

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Even for a 65 million won Palisade Hybrid 9-seater, combining inventory car discounts, acquisition tax exemption for multi-child families, VAT input tax deduction, and Gyeonggi-do regional development bond purchase exemption can significantly reduce the actual burden.

If the vehicle is used for a taxable business, depreciation is reflected as a necessary expense, reducing comprehensive income tax and local income tax. This article compares the actual 5-year cost for cases with no benefits and cases where all conditions are met.

Conditions Used for Calculation

Item	Applicable Conditions
Vehicle	Palisade Hybrid 9-seater
List Price	65,000,000 KRW
Inventory Car Discount	3,000,000 KRW
Actual Payment	62,000,000 KRW
Business Owner Conditions	Used by a general taxable business for taxable operations
Multi-child Family Conditions	3 or more children under 18, meets acquisition tax exemption requirements for 7-seater or larger vehicles
Public Bonds	Registered in Gyeonggi-do in June 2026, Hybrid regional development bond purchase exemption
Depreciation	Calculated using the straight-line method over 5 years, excluding VAT from the acquisition cost
Income Tax Rate	Combined 38.5% (35% comprehensive income tax + local income tax)

Applicable Benefits

Inventory Car Discount

Applying an inventory car discount of 3 million won to the vehicle’s list price of 65 million won results in an actual payment of 62 million won.

Acquisition Tax Exemption for Multi-child Families

The supply value after the inventory discount is approximately 56,363,636 won. Applying a 7% acquisition tax rate for passenger cars, the estimated acquisition tax is approximately 3,945,455 won.

Acquisition tax can be exempted if conditions such as having 3 or more children under 18 and owning a 7-seater or larger vehicle are met.

Business Owner VAT Input Tax Deduction

If a general taxable business uses a 9-seater vehicle for taxable operations and receives a qualified tax invoice, VAT input tax deduction can be applied.

Category	Amount
Payment including VAT	62,000,000 KRW
Supply Value	Approx. 56,363,636 KRW
Value Added Tax (VAT)	Approx. 5,636,364 KRW
Actual vehicle burden after VAT deduction	Approx. 56,363,636 KRW

Gyeonggi-do Regional Development Bond Purchase Exemption

Gyeonggi-do applied the obligation to purchase regional development bonds to non-commercial hybrid vehicles with an engine displacement exceeding 1,600cc starting July 1, 2026. Therefore, if the same vehicle was registered in June 2026, before the system change, the bond purchase exemption can be applied.

For comparison without benefits, the bond purchase amount for passenger cars over 2,000cc in Gyeonggi-do was calculated at 12% of the tax base, and an immediate sale discount rate of 10% was assumed.

Assumptions for Bond Comparison	Amount
Acquisition Tax Base	Approx. 59,090,909 KRW
Bond Purchase Amount 12%	Approx. 7,090,909 KRW
Assumed Immediate Sale Discount Rate	10%
Actual Bond Discount Cost	Approx. 709,091 KRW
Actual burden for June 2026 registration	0 KRW

The bond purchase amount of 7.09 million won is the principal that would be returned if held until maturity. The amount compared as actual cost is approximately 710,000 won, assumed to occur when sold immediately. Since the discount rate varies daily, this number is an assumed value for comparison.

Income Tax Reduction through Depreciation

Depreciating the vehicle’s acquisition cost of approximately 56,363,636 won (excluding VAT) using the straight-line method over 5 years results in an annual depreciation expense of approximately 11,272,727 won.

Assuming the taxable income is sufficiently high each year for the full depreciation expense to be subject to the 35% comprehensive income tax bracket and local income tax, the combined marginal tax rate is 38.5%.

Category	1 Year	5 Years
Depreciation Expense	Approx. 11,272,727 KRW	Approx. 56,363,636 KRW
Comprehensive Income Tax & Local Income Tax Savings	Approx. 4,340,000 KRW	Approx. 21,700,000 KRW

This calculation shows a tax reduction of approximately 21.7 million won over 5 years. This benefit does not occur as an immediate discount when purchasing the vehicle but is realized over five tax years.

When No Benefits Are Applied vs. When All Conditions Are Met

In cases with no benefits, the vehicle price of 65 million won was added to approximately 4.14 million won in acquisition tax and approximately 710,000 won in immediate bond sale costs.

The case with benefits applied reflects all of the inventory car discount, acquisition tax exemption, VAT deduction, and June bond purchase exemption.

Comparison	Without Benefits	With All Conditions Met
Vehicle Price / Payment Amount	65,000,000 KRW	62,000,000 KRW
Acquisition Tax	Approx. 4,136,364 KRW	0 KRW
Bond Discount Cost	Approx. 709,091 KRW	0 KRW
VAT Input Tax Deduction	0 KRW	-5,636,364 KRW
Actual Cost at Purchase/Registration Stage	Approx. 69,845,455 KRW	Approx. 56,363,636 KRW
5-Year Income Tax Savings	0 KRW	-21,700,000 KRW
5-Year Actual Cost	Approx. 69,845,455 KRW	Approx. 34,663,636 KRW

Conclusion

If no benefits are applied, the combined burden of the vehicle, acquisition tax, and bond discount cost is approximately 69.85 million won.

By applying all benefits, including inventory car discount, multi-child acquisition tax exemption, VAT input tax deduction, and Gyeonggi-do bond purchase exemption in June 2026, the actual cost at the purchase and registration stage can be reduced to approximately 56.36 million won.

Furthermore, by reflecting the approximately 21.7 million won in comprehensive income tax and local income tax reduced through 5 years of depreciation, the 5-year actual cost becomes approximately 34.66 million won.

The final difference is approximately 35.18 million won.

This calculation does not include the future resale value of the vehicle or maintenance costs. The income tax savings may vary depending on the actual business use of the vehicle, depreciation method, and the marginal tax rate applied each year.