Is it still the 20% for foreigner when they first arrive and 6% Taiwanese citizenship?
The witholding tax rate for non-resident is 18% for this year. If non-resident’s salary is under NTD 26,820, the rate will be 6%.
The witholding tax rate for resident is 5% for this year.
The non-resident is one who stay in TW less than 183 days in a calender year.
I am a Taiwanese guy with USA CPA and TW CPA status.
Yes, but do employers legally have to deduct 18 percent for the first six months until a foreigner hits the 183 day mark?
Yes. They are responsible for it and will be held accountable for it if you decide to run off before the prescribed 183 days.
Is there a way to get back the 14% “overtax” (20%-6%) after 6 months ?
It will be refunded when you file, providing you have been on the books (read: paying income tax) more than 183 days.
what’s the tax rate for those earning more than NTD 26,820? thanks!
Tax rates, allowances and exemptions for 2012 have been announced and seem to be unchanged from 2011.
(All figures, TWD)
Progressive rate table
5% > 0-500,000
12% > 500,001-1,130,000
20% > 1,130,001-2,260,000
30% > 2,260,001-4,230,000
40% > 4,230,001 upwards
Exemptions
Taxpayer, spouse, dependant = 82,000 per person
Ascendant > 70 years old = 123,000 per person
Standard deductions
Single = 76,000 / Married couple filing together = 152,000
Special deduction
Salaries and wage earners > 104,000 per person
Savings and investment > 270,000 per household
Tuition > 25,000 per person
Disability > 104,000 per person