I have a question about the 183 day requirement for taxes.
It was my understanding that the 183 days simply needed to be within one fiscal year - not that the 183 days needed to be 183 days continuously spent in Taiwan. However, my university is telling me that because I left town for 10 days in February, that they need to calculate my 183 days from the date of my return to Taiwan (2/17) - thus keeeping me out of 6% bliss for another two months!
Shouldn’t they simply subtract the 10 days from a calculation started at Jan 1? Shouldn’t those 30 plus days in January count towards the total 183 days?
I’m not sure how the company is required to calculate it, but I do know that when you file your taxes, they do not require you to be in Taiwan for 183 consecutive days–just cummulative. I just filed my 2001 and 2002 taxes yesterday, and the form asks you to list all your entrance and departure dates for any trips outside of Taiwan during the tax year. Then you add up the total number of days spent in Taiwan, and that’s what they use to determine if you qualify as a resident. You should then qualify for a refund of almost all of the extra taxes you paid during the course of the tax year–woo hoo! At least, that’s how it worked out for me.
I remember my company fretting about all my planned non-paid vacations, and they told me it would affect my taxes, but they did base their taxation on cummulative days, not consecutive days (although they told me all sorts of confusing contradicting things in the beginning, before we got everything sorted out).
It is cumulative within the January 1st to December 31st period.
Tell your employer to call the National Tax Administration.
I had the same problem. I knew the regulations but my boss didn’t. Don’t worry about it though. You’ll be deducted at 20%, but when you file your taxes you’ll get a massive refund becuase that should have been 6%. Think of it as compulsory savings.
Bri
Hi guys:
I’d like to share my own experience:
I asked my Finance colleagues and she told me that there’s a table and based on your income and how many dependants you have, they’ll discount based on that, this applies to everyone
So, there’s no such thing like 4% or 20%, not anymore, probably this year rules has changed…
Alos if your parents are over sixty or if your grandparents are still alive… you can claim tax relief
Also there is a tax free allowancee… and tax brackets for different levels of income
Thanks to everyone for the information. I suppose as long as I get it back in the end…
I am just happy to know that I can go on vacation out of Taiwan in September without having to start at square one again!!!
I had heard about the tax break if you are sending money to parents - but it counts for grandparents too??
And you elderly relations do not need to be in Taiwan - you just need some prooof that they are alive and related - well worth the effort - only one person in Taiwan can claim - but if you look at the way they are identified …
The allowance for parents etc enjoys a useful raise when they reach 70 years old. Current regs are 74000 NT$ allowance upto 70 and then 111000 NT$ allowance if over 70. You will require proof of relationship, proof of age and proof that they are still alive, and the last one is surprisingly difficult if they are not here in Taiwan.
The proof of life is only required if claiming the additional allowance of being 70+.
It is also worth remembering that the reduction in Tax deduction after the 183 days stint, varies from Industry to Industry, and tends to reflect the likely salaries being earnt by the foreignors in that industry, Hurts some more than others.
Paying all year at 20% does allow for a nice refund, as Bri says enforced savings, but having to wait until August or Septemeber really sucks.