Contract - ARC and work permit extension - need some help

Hi there,
situation is very simple.
i still have 5 months on my 2 years contract and the company i work for proposed me to sign an extension for another 2 years.

they have asked me to prepare my passport, ‘‘TAX Certificate and 2015 withholding vouchers’’.

i have absolutely no idea on the steps to follow, so if someone can help, it would be highly appreciated.
i want to make sure to extend my arc and work permit.
thanks

Did you file your taxes for the 2015 tax year? Whether on paper or via the software?

If you did that, then all you have to do for the tax certificate is to go to the tax bureau near Taipei Main Station to have them print you out the certificate. Keep in mind that not ANY tax bureau office deals with ARC holders! I went to the one near my house and they told me that tax HQ at Taipei Main are the only ones that can handle foreigner tax returns.

If you didn’t file your taxes, you might want to hop on that you can do the above mentioned.

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You mean you went to a local office in Taipei or a main office outside of Taipei? (I know the local offices in Taipei aren’t amenable to such things.)

yes i did file my taxes for 2015 -
awesome bro - will this automatically extend my arc? or is there any other step for that?

I’m in Taipei and went to a local branch near my house (the one in the China Airlines building next to Nanjing Fuxing MRT) and they told me I had to go to the one next to Taipei Main Station on Zhong Hwa Rd., which is the main building.

I had no issues with this because local branch is near my house, main building is near the office.

This is just one of many documents you need, but when I renewed my ARC earlier this year, this is all I needed to provide (aside from passport sized photos) to the HR department. They took care of the rest.

You of course need to be approved for the extension. :wink:

Your employer will apply for the work permit extension. It is about 10 tens processing time. Then, the ARC is easy to get. Fill out a form, attach the work permit, pay a fee and wait another 10 days or so. If your employer will help you to do the ARC stuff, even better.

cheers bro -
i guess just paper work-
:neutral_face:

How did it go?

for the moment i am slowing down the process - explaining that i will bring them all required documents next year :grin:
i still have 5 months on my contract and i dont want to rush anything-
opportunities arise and i dont want to miss any.-
Chinese new year is coming too, so let’s play it ‘‘Taiwanese style’’.

UPDATE:
the situation is simple ( again :innocent:)
I am with the company since may 2015.
The contract expire in may 2017.
I pay every month the normal tax ratio.
However i still didn’t sign the new contract as i want to evaluate all different opportunities.

The HR sent me an email this morning, explaining that because i didn’t sign yet, they need to increase the tax to 10% ( i know it is not so much) but i always play by the rules.
i would like to know if the current situation is LEGAL.

please have a look at the email and let me know what you think ( i mean, comment if 100% sure) as i feel they just trying to pressure me to sign using any kind of tool ( in this case, hitting the wallet)… i may be wrong.

ps: i believe that they just don’t know and the HR being slightly mean - they are all good guys in here but it just seems quiet weird to be honest.

‘’’’’

  1. the new contract for foreign employee was requested by Ministry of Labour normally need to apply 4 months before exipry day.

  2. we fully knew your concern, but the income tax 10% need to be deducted in case the foreign employee’s annual renew contract (started from January) has not been confirmed.

Now XX = HR will not deduct your 10% income tax in January salary, but in case you decide not to renew after Chinese New Year holidays, she will deduct two months (Jan & Feb) of income tax together. Hope this is clear to you.’’’’’’

what do you think guys???

I think you should learn how to use the quote function :grin:

With the government regulating labor laws and everything in the past few months. It might be hard to know what the hell is going on. My company hasn’t informed me of any change, but I’m not signing a new contract this year.

Let’s turn on the @yyy signal and see how he can help.

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Wait a second, are you such a high earner that you pay more than 5% (as a resident)? :astonished:

The non-resident withholding rate is 18% (or 6% for under ~30k/monrth), and the resident withholding rate starts at 5%. They may be confused, but more likely they’re up to mischief.

The recent labor law changes have had no effect on income tax that I’m aware of. (Overtime pay is usually supposed to be tax-free, but the withholding rate is still either zero or the same as for normal salary/wage income.)

hey, i am not a high earner - basic income -:2cents:
i have just phoned someone at the tax office and their response is pretty funny as they explained me :
an employer can increase the tax if he feels his employee want to leave ‘’‘TAIWAN’’’---- however, you will get back your tax with the refund- :wall:
the lady didnt seems to get my point which is not about the money but just about legality.
I have tried to explain her that even if the contract comes up to an end or if i want to leave earlier, iam entitled to 6 extra months with the arc… sooo basically, where is the problem???
Moreover, she added that te 18% for the first 6 months need to be applied every single year from January. :wall::wall:
i really really don’t get their point but hey i took my decision…:runaway:
i will sign this contract and after chinese new year wether stick with it or give them my resignation letter–
doesnt matter actually— this is the kind of small thing which makes me hate some ignorant little piece of tofu.

ps: my intention at the begining was just to avoid them extra paper work but it seems like they insist on doing so :joy:
:astonished:

The “fear of the foreigner leaving Taiwan” part is considered legitimate, and many employers use it as an excuse.

The only problem is the 10% part still doesn’t make sense, but if they under-tax you, if anyone gets in trouble for it, it will be the employer and not you. :slight_smile:

learning in process :sunglasses:

so fun that i am quoting myself :confused:

i am realising something pretty deep right here — my transformation ( to Taiwanese) began. I think i have a loosing face issue -
this non sense battle is just about who will loose face and tbh, i don’t really care— will sign it ( even if loosing face ---- because i will win later) —
OHHH mannn, when did i transformed like this??? when the metamorphose occured?:scream:

Sounds like your employer is being proactive. This is much better then them letting it expire on you.

The work permit makes it possible to get an ARC. If your work permit expires or is cancelled, your ARC, health insurance will also most likely be cancelled.

Just keep an eye on the dates. It isn’t fun to sort out after it has expired.

Tax rate is technically 18% with no deductions or allowances, until you hit 183 days. Companies generally ignore this as they believe you are going to be around for more than 183 days, assuming you started with them before July or whatever date means >183 days left in the year. As you are not signing a new contract they are increasing the tax deduction as they will be left with the 18% bill should you leave Taiwan before 183 days are up in the tax year. Perfectly legal. At a high pay rate or if you are getting redundancy payments it may actually be preferable to leave before 183 and “only” pay the fixed 18%.

cheers.
so i misunderstood many things actually.

  1. i thought that you pay the 18% once during the first 3 months then it go back to normal tax and stay that way-- WRONG

I still don’t quite get it. Could you break it down a bit more for me?