I am currently in Taiwan doing some research and preparatory work for a foreign group looking to expand their activities to Taiwan. This is primarily online. They are looking to set-up formally in Taiwan, however after recent discussions with their legal department it seems that this will not be completed for quite some time (perhaps into next year).
I am currently here on a visa-waived entry as I cannot get a work permit from my employer, and after my most recent discussions am feeling rather insecure (rightfully so, given the legal status of this).
I had three main questions:
Is it possible for me to pay tax here while working without a work permit, and without opening up questions with the government? I already feel guilty about my status here and would like to contribute to the society I am living in, rather than simply benefiting from services paid for by the taxes of locals.
After receiving my first contract payment the bank (Mega International) required me to come and sign to receive the foreign transaction. Does this need to be done every time I receive an international transfer, or only for new payers?
They also asked questions on the phone about having an ARC and who the money was coming from. Would banks here report my incoming transactions to the government, and thus immigration? Would it be any different if I was paid into a home country account and transferred the money to Taiwan myself?
I have done some reading of other posts however am still very unclear, and would very much appreciate any advice on this.
Technically, yes. Your tax status and immigration status are separate issues. The tax office wants to know how long you stayed in Taiwan during the calendar year (< 90 days, < 180 days, > 180 days) and applies different tax rates for that.
The main issue is your visa though. You are not allowed to work in Taiwan without the correct visa. A work permit comes with an ARC.
The “by the book” solution for this problem, if you plan to stay in Taiwan for longer, would be for the foreign company to open a representative office and employ you as the representative of the foreign company until they start operations here. You would get an ARC, local health insurance and (a bit) less hassle from the bank.
I am also a Mega customer. In my experience, they will keep doing that unless you have an ARC and a work permit relating to work for a foreign company.
My tax office knows of every Taiwan dollar in interest I earned, the data comes from the bank directly. Not sure if immigration also has access. If you only plan to stay until next year, why not use a debit card to take money from your home country account out of a local ATM?
Technically, yes. Your tax status and immigration status are separate issues.
Thank you.
The “by the book” solution for this problem, if you plan to stay in Taiwan for longer, would be for the foreign company to open a representative office and employ you as the representative of the foreign company until they start operations here.
Thank you. I have found a thread on this and it looks like an interesting option, should the landlord be willing. For clarification, the foreign group I work for is a not-for-profit corporation—do you have any idea if such groups are eligible for representative offices?
I am also a Mega customer. In my experience, they will keep doing that unless you have an ARC and a work permit relating to work for a foreign company.
Got it. So you have done that for a time? Did they ever start rejecting transfers, or just keep requiring you to sign at the bank? Does anyone know if all banks have this process?
If you only plan to stay until next year, why not use a debit card to take money from your home country account out of a local ATM?
This sounds like a sensible idea, although my employer is not based in my home country, so that would mean two lots of transaction fees. Better than encountering issues though.
Thanks so much for your insights, I really appreciate it.
My situation might be a bit different since I’m married to a local but I get monthly wire transfers sent to Mega. The wire transfer was US dollars.
They used to call every time it came in to confirm the wire transfer but after about the third time, my wife and I went in and talked to them. We told them that a wire transfer would be coming in at the end of every month (the last Wednesday of every month) and told them the name of the company sending the wire transfer. We told them that if the money came from that company, it was authorized and they didn’t need to call us anymore. They agreed and haven’t called us since.
There are exceptions, but normally a visa does not indicate permission to work.
The standard procedure is to get a formal job offer first, then a work permit, and then an ARC. You can legally start work on the date indicated on the work permit and not any sooner. If caught working illegally (which we do not encourage or condone), expect to be fined and deported.
Is anyone aware if the work permit requirements are the same for representative offices as for other companies? Ie degree in a related specialisation, two years related work experience since graduation etc?