And already the exceptions are starting to be tacked on. According to the article they solved the problem for the low income foreign workers making less than 1.5x minimum wage ($25920). Next they’ll probably make an exception for foreign spouses, then maybe permanent residents, and pretty soon we will de-facto be back where we started. And what problem were they trying to solve by changing the rule anyways?
Excellent question…
Just keeping the bureaucrats employed thats all.
Okay I am LIVID about this!!! I was told today as I got my January pay that the gov’t has a new policy that they have to take 20% taxes again for the first 183 days of the year.
I asked my admin for a copy of this policy that states if I have to pay 20% as I have an APRC but of course they don’t have anything.
I am not married to a local person - I have just been here that long! I have always paid my taxes and filed on time.
I cannot fathom this because I send my money home and believe me … the 15000 I am going to lose a month does make a difference. The Taiwan gov’t doesn’t pay me interest on the money after they take forever to return it after one files taxes …
Has anyone seen any gov’t websites that state the info for those of us with APRC’s??? Please forward if you do. Thanks in advance!
The only official exemption I’ve heard of is for those making under 1.5 times minimum wage. Tax offices have been telling companies that they can withhold at the resident rate if they want but the company will be on the hook if worker stays less than 183 days and doesn’t pay the tax. Those that are doing withholding at the resident rate for long timers and foreign spouses are doing so as a favor, and it is a pretty big favor since they get stuck with the tab if it doesn’t work out.
Thanks for this info, as the week wears on - more and more of my friends are learning about this too.
A friend of mine went to the tax office today and was told by a supervisor there that companies responsible for withholding can choose to withhold at the resident rate for foreign nationals who are on a one-year or longer contract for the year (evidently this is irrespective of how many times the minimum wage they make, as my friend makes considerably more than that). So it sounds like it is at the discretion of the company doing the withholding as to whether they want to run the risk of being on the hook as jlick says.
That’s right. I re-read what I wrote before and it could have been mis-interpreted. There were two separate things completely independent of one another:
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Foreign workers making under 1.5 times minimum wage are exempt from the new rule.
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Companies may at their discretion withhold at resident rates for foreign workers who are long time residents, but the company will have to pay the full 20% tax if the worker leaves and doesn’t pay the tax due.
[color=#0000FF]Thanks for the updated info!
As fate would have it I have changed jobs and my new school doesn’t even want to tax me! I asked them to please find a way to at least take 10% off. Life is interesting - that’s for sure.[/color]
Keep in mind that this makes it difficult to prove income and legal job when you want to renew your ARC, or apply for APRC or citizenship.
[quote=“surreal_realism”][color=#0000FF]Thanks for the updated info!
As fate would have it I have changed jobs and my new school doesn’t even want to tax me! I asked them to please find a way to at least take 10% off. Life is interesting - that’s for sure.[/color][/quote]
Doe sthis mean you will have to present your own declaration all by yourself? Then you would have to pay a big lump sum at the end of the fiscal year. :s
I got a neighbor that goes through this with his company -not a happy camper this time of the year, I’m telling you.
G’ment will get its taxes somehow…
Yes I know and thought about the new school/tax issue already. I told my new school they need to figure a way out to take some tax off. I already have my APRC and open work permit so I am okay there.
Thanks or the heads up!
Hello
I’ve read through this thread but there doesn’t seem to be anything to answer my question.
I arrived in Taiwan on the 12th June. I have just got a job, my ARC is currently being processed. It won’t be processed until after the 2nd July. My question is: does the 183 days start when my ARC kicks in or does it start from when I arrive? If it starts from when I arrive, then I’ll be able to get my tax refund as I’ll be here more than 183 days before the next year. If it starts when my ARC kicks in, then I’m screwed and I’ll lose my 20% tax.
I may have to do a visa run for my ARC to be completed (as I came on a landing visa/ visa exempt entry). I will be leaving the country for a few days - will I be set to zero days or are the cumulative?
Thanks.
Also… is this link up to date(it was on the first page) tealit.com/taxes.htm
Hi burnerking,
the fiscal year counts from the day you arrive in Taiwan, which means in your case 12th June, even if you leave the country for a visa run, they will deduct the days you are away from Taiwan. Just be careful to have 183 days by the end of 2009…
[quote=“guanbatt”]Hi burnerking,
the fiscal year counts from the day you arrive in Taiwan, which means in your case 12th June, even if you leave the country for a visa run, they will deduct the days you are away from Taiwan. Just be careful to have 183 days by the end of 2009…[/quote]
sweet - I thought I’d lose that 20% tax. I now need to talk this through with my school. It’s a new school so I think they are still finding ‘new’ things out.
My school is paying me fortnightly - one fortnight it’ll be cash in hand and the second fortnight in the month, it’ll go into my account. Obviously, this is a form of tax dodging for both parties. Are there any possible repercussion’s on my part if they do this?
I am not working as a teacher in Taiwan, so I am so familiar with their rules…
But usually they have their own ways to dogde taxes 
You sure about that? I thought it started only once you were on a resident visa. If you are on a tourist visa, i thought the clock reset every time you left, or maybe that’s just for APRC qualification…
There are different rules for fiscal year and PARC…
I am 100% sure, because just had my tax declaration last month …
Also came to Taiwan in May last year… left Taiwan for couple of times, before my ARC was approved…
The tax law residency test is based on presence in Taiwan. It can be on a visitor visa or resident card; it all still counts towards the 183 days, regardless of your status.
I switched jobs in August. My new company seems confused about the 183 day rule and has been withholding 20% of my salary.
What can I do to ensure that I won’t be taxed the rest of the year at 20%?