I just got informed that it is required to file the taxes when staying in Taiwan longer than 90 days but less than 183 days (which happened to me last year).
I do not work in Taiwan, nor I have an ARC/work permit. I used to study here 2011 - 13, after short-term working for a Taiwanese employer with working permit, I did study Chinese followed by a working travel Visa.
Currently, I’m doing VISA runs, but planning to stay in Taiwan long-term.
So, here’s the thing, a friend of mine mentioned that he stayed in Taiwan around 10 years never filing tax, because of no work in Taiwan. Then after 10 years when he got married, opened his business and bought a house the authorities approached him for last 10 years taxes. When he said he did not work, they made him prove it. He could not and he had to pay.
Questions:
How to talk to the tax authorities? I’m very afraid that if I cannot proof that I don’t work in Taiwan or elsewhere they make me pay?
I live mainly by my royalties, since I live abroad there is nowhere income tax to pay. However, I can proof the overall income by Amazon statements, and IRS deductions. Would this be a way?
Does anyone eventually know a consultant in this regards who could advise here?
I just heard this horror story and got the advice to be very careful when talking to the tax authorities here in Taiwan. As they get rewarded in order to make people pay (even if not guilty). In tax law, people always have to proof and show evidence, therefore every advice would be very appreciated.
If you don’t intend to ever apply for an ARC or open a business here you don’t need to ever file for taxes here. You can keep doing visa runs for all eternity. Your last paragraph is complete bullshit. The tax authorities here are only interested in closing tax cases. It matters not one jot to them if a case closure results in a refund, a tax payment or a fine. I’ve had refund checks handed to me for obviously illegal jobs…they don’t care.
In Taipei, go to the head office on Zhonghua Rd. (across from Beimen Station). They have English (and Japanese) speaking staff to help with general inquiries, and they usually know what they’re talking about. It gets busy there in May.
If you want to get an answer in writing, you can contact them through their website and even get a response in English. It may take a while, though.
If you’re not satisfied with what they tell you, make an appointment to consult a lawyer at the Legal Aid Foundation (www.laf.org.tw) or at City Hall. They generally don’t speak English, except on Saturdays at the LAF (in Taipei at least).
There is a public perception that the tax people use unfair standards, and this perception is the basis for a proposed “taxpayer’s rights charter” or something. I don’t know how accurate the perception is or whether there’s been any progress on the proposal.
Btw I’ve edited the title to avoid confusion. Although the rules change once you’ve been in Taiwan for 90 days in a calendar year, you’re still not a “resident” for tax purposes until day 183 and therefore not entitled to the deductions that residents get. And you probably entered with a visa exemption, not a “landing visa”.
So, I thought it might be helpful to post a new status here and I might need some advice as well.
Here’s a new status:
Just been to the head office on Zhonhua Rd. to talk to their staff. They mentioned I might not need to pay tax on that since it is overseas income and the total amount is just too small.
However, they want me to provide some documents and statements once I come again to file taxes:
passport (pretty basic) to check how many days I actually stayed in Taiwan
some sort of proof of income (seems I can provide the income statements provided by Amazon, or eventually a paper I got from the IRS)
a statement from me and my girlfriend to describe what I’m doing here in Taiwan. It needs to have a date and place.
proof of travel documents: such as recipes from hotels or train tickets, etc.
So, here’s the question: If I can already proof my income from overseas, why do they need me to provide a statement and other proof of travel activities (which I don’t collect actually).
Does anyone have experience with the content of such a statement? Can I just declare that I live here in order to live with my girlfriend (eventually to improve my Chinese), or do I have to come up with other reasons? This point makes me a little concerned as I’m not really sure what they expect here.
Probably they think the overseas income is not enough to support you. They tend, with Kreskin-like perspacity, to assume people living here must be working. Most people play along without immediate repercussions. You are rocking the boat with your stubborn insistence about the reality of the situation. Their suggestion that you provide some documents indicates to me that they’re coming to grips with this, but want something besides their cushioned office chair to cover their ass if it should turn out you were selling piggies down the line. I’d bet they’ll accept almost anything reasonable you write down and offer them.
Been a long time since I had to deal with them on an individual level though. maybe someone else will have more insight.
Has this been posted already? Don’t know. Regardless check out this deduction:
Individual income derived from written articles,
copyright, musical compositions, musical productions,
dramas, cartoons, or remuneration for speeches and
lectures on an hourly basis. However, the total amount
of such income for the entire year shall not exceed NT$
180,000.
They may be following a particular regulation (from x years ago) that tells them what documents to ask for in this type of situation, and they may be worried that if they deviate too much from it they’ll get in trouble.
If you have no receipts, you can try offering emails and witness statements relating to your activities in Taiwan.
Are there any Do’s and Don’t(s), that need or cannot be mentioned within this statement?
Points that are obvious are:
visiting girlfriend
meeting friends
freshen up everyday Chinese (which I studied before)
In general, I really stayed a few weeks at the time and then I used to live in Saigon, Bangkok and stayed in Europe for a longer time. Would those reasons and the certification from IRS be enough?
Regarding the activity list, I’m afraid I don’t have anything to show as I didn’t do much here at the time than staying in Taipei.
I thought I shared the status to provide some value to other who might face similar situations:
Just coming from the tax office and filed successfully. No applicable tax to my income.
I stayed in total 155 days last year, however, the foreign income was not taxed applicable (royalty income). I had to show a statement from me and my girlfriend as well.
First, they kinda want me to pay tax, so I had to argue, but then when it was clear it was all good.
