Tax being paid after 183 days

Legal Taxes
1

I will try explain this simply.

I have been in Taiwan for the past 2.5 years. As of this year, I have been in the country since January 1st and left for 48 hours last weekend.

I asked my employer if the tax will drop to 5% next pay cheque (July 15th) and was told no, it will only drop to 5% the following month (August 15th).

January 1st to July 15th is 197 days.
January 1st to July 1st is 181 days. (-2 days so 179 days)

Does the tax drop according to the months you worked (Jan 1st to July 1st -2 days being 179days)
or
Does the tax drop according to the days you have been in Taiwan (Pay day is the 15th so July 15th is 195 days -2 = 193)

If I get paid in August, I will only get paid 5 pay cheques at 5% tax.

TL;DR Which month does the tax drop to 5% in your job?

2

Technically, your company can decide to drop their withholding amount at anytime.

Either way, since you will be undoubtedly in Taiwan for more then 183 days, when you file your taxes next year you will get everything over 5% taking returned to you.

My second year here, my January paycheck went back to the 18% rate. I had to convince them not to take so much out and that it was obvious I wasn’t going anywhere. They finally agreed. I’ve been here 7 years now.

They just do it for CYA (cover your ass). If for some reason you don’t make the 183 days and skip out on the island, the company is responsible for the extra tax that wasn’t taken out.

3

I know I will get it back, I would just prefer 6 months at 18% and 6 at 5%.

Not 7 at 18% and 5 at 5%.

My old job bullshitted me saying December pay is paid in January so it goes back up to 18%.

Seems your employer just does whatever they want to do.

4

You can negotiate the withholding rate with your employer. One of my former employers typically withhold me 18% for every first 6 months and 0% for the rest of year.