Hi there, I’ll keep it relatively short as I’m not sure I’ll get a reply
I own a company which is registered in HK(where the majority of my earnings also come from due to said company).
I would, however, like to move to Taiwan as my wife is Taiwanese and the accommodation seems substantially cheaper. From previous topics I’ve read here on somewhat similar topics, it would appear that I won’t be taxed on the income I derive from my HK company unless it’s over 6M NT?
All my income would be derived from that company and simply transferred to a Taiwanese bank account.
I would talk to Sam at Jusregal . They are very good and can answer the questions you have .
捷瑞會計師事務所 Jusregal CPA
Tel:2521-0710#556 Fax:2521-0720
台北市中山區松江路122號11樓 (近松江南京捷運站八號出口)
11F , No. 122, SongJing Rd., Taipei (Nearby Exit 8 , SongJiang Nanjing Station )
email for sam is : sam@jusregal.com
How income is taxed depends on what type of income it is (salary, “professional practice”, or something else).
As long as you spend 183 days in a calendar year in Taiwan, you get a basic exemption and a pile of deductions, plus some things are tax free anyway, or tax free up to a certain amount. One area to look into is
Individual income derived from written articles, copyright books, musical compositions, musical productions, dramas, cartoons, or as remuneration for speeches and lectures on an hourly basis. However, the total amount of such income for the whole year shall not exceed NT$ 180,000;
in Art. 4 of the Income Tax Act. Another one is the deduction for investment income.
Seems you operating a HK company and your are shareholder of the HK company, so, the money you receive from HK company should be “dividend”.
Once you become a tax resident (stay in Taiwan up to 183 days), the dividend you received from HK is kind of overseas income.
The overseas income less than TWD 1 million in one fiscal year no need to report, over 1 million must report.
If you and your family’s (overseas income + Taiwan local income) less than 6.7 million, no need to pay tax for overseas income, otherwise, will need to pay 20% for those income over 6.7 million.
By the way, there is an anti-tax avoidance law might be active few years later, if your structure mach to the law, those income from HK might be treated as Taiwan local income to pay tax. FYI.
