Business Vehicle Expense Calculator

Business Vehicle Expense Calculator helps model Korea-related business income, expenses, tax rate, and credits in English.

Business vehicle expense inputs

Recognized expense

₩9,432,000

Business ratio 72.0%.

Annual tax saving

₩2,490,048

₩12,450,240 over five years.

Logbook effect

-₩3,668,000

Recognized-with-logbook minus no-logbook limit.

VAT and green plate

No VAT credit

Green plate threshold not met.

Calculates Korean business-vehicle expense recognition with the same depreciation annual limit, useful life, no-logbook total cost limit, business-use ratio, business-only insurance denial rule, VAT deductibility by vehicle type, green-plate threshold, and acquisition-method comparison as the Korean calculator. This English calculator calls the same pure tax calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic value-times-rate stub.

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Business vehicle expense calculator

This page translates the Korean business vehicle expense guide and keeps the same depreciation, mileage, logbook, insurance, VAT, green plate, and acquisition-method comparison logic.

Depreciation and cost limits

The Korean vehicle expense model uses a KRW 8 million annual depreciation limit and a 5-year useful life. For operating leases and long-term rentals, a depreciation-equivalent portion is carved out before applying the same limit concept.

When no vehicle logbook is kept, the total recognized annual vehicle cost is limited to KRW 15 million. With a logbook, operating costs are recognized by business-use ratio, but depreciation is still limited.

Insurance, VAT, and green plate

Corporations can lose the entire vehicle expense deduction when business-only auto insurance is missing. From the 2026 model, individual double-entry taxpayers also face a strict insurance test.

VAT input tax is deductible only for qualifying vehicle types such as compact cars, vans with 9 or more seats, and trucks. A corporate vehicle with acquisition cost of KRW 80 million or more can trigger the green license plate threshold.

Planning use

The calculator compares purchase, finance lease, operating lease, and long-term rental by annual recognized expense and tax saving. Electric vehicle and hybrid incentives are reflected separately in the Korean source data.

Use the output before choosing a vehicle, changing ownership method, or deciding whether the administrative burden of a logbook is worth the additional recognized expense.