6 million nt$ overseas income is tax free?

Legal Taxes
1

is my understanding correct ? up to 6 million a year overseas income is tax free?
meaning if i work from home for a foreign company, that remitts my salary from overseas, i pay nothing ?
sounds like a loophole too good to be true.

2

I looked into this recently:

For example, profits on my investments in the UK are also tax exempt since I’m not a tax resident there. I thought I’d pay on them in Taiwan, but nope. All tax free.

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3

thanks, so ynder 1 million is tax exempt, but i dont get the meanjng of the 6.7 number, the sentence is no so clear.

4

In any case, this does not apply to salary income from an employer abroad if you are performing the work while being in Taiwan.

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5

Yep. So it’s really only advantageous to overseas investments.

6

I believe the 6.7 mill is talking about either your Taiwan income or your total income including Taiwan and overseas.

7

Yeah there’s no loophole, sorry, this is only for “overseas income”, you’re just misinterpreting the meaning of this phrase. It refers to things like capital gains or dividends on investments you hold abroad, rental income from property you own abroad, income from a business you own in another country, etc. If you’re physically in Taiwan while doing work for a foreign employer, then you are working in Taiwan and that income is taxable here. It doesn’t matter where the money is paid, it matters where the activity is happening that generates the income.

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8

You must be paying tax somewhere. If you’re funding that account as a U.K. citizen and the address on the account is U.K., you have to pay capital gains tax there.

9

I spoke to a Taiwan and UK accountant about this.

They said it’s solid.

On the UK side, this is a good read:

If you’re not a UK resident, you do not usually pay either:

You’ll only have to pay Capital Gains Tax if:

10

Then in that case you should be paying capital gains in Taiwan if you’re considering yourself not a resident of the UK.

11

Nope. Taiwan doesn’t tax foreign investment income under 1 million NTD. That’s the loophole.

This I also confirmed with Chen Yao CPA firm.

They also said I don’t even need to report it.

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12

When you think about it, it’s not that great of a loophole anyway, because if I was a UK tax resident I could put the investments into an ISA and profits up to a certain amount would be tax free anyway.

13

What’s your address on your tax account? If you’re operating as a UK person and using your tax identification number, they’re going to want to see you paid tax. Normally brokerages have different types of accounts for operating as a non-citizen. You might want to double check with a UK accountant as it’s super easy for the tax service to detect that you never paid tax on things like stocks.

14

It’s common practice for Brits abroad to invest in UK stock market whilst abroad and pay no capital gains tax on the profits. It’s perfectly acceptable and printed right on the HMRC’s website. Nothing wrong with it. Real estate is different though.

All my UK accounts use my UK address, and I have no doubt HMRC can see my profits, but since there is an exemption to those no longer living in the UK, it is all fine.

Have gone through all of this with an accountant, and a financial planner in the UK. It’s above board.

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15

I assume he/she is a citizen but without residency status. Many countries have this . But thought most still taxed them.

I still need to pay income tax on rentals and bank investments as an example in canada and i am not a resident there, though retain citizenship.

16

Same here. Day job in TW earning NTD into TW bank account.

But the majority of my money is in £ in the UK, invested in various things.

Have also confirmed with an accountant that this is totally fine. And since I’ve been out of the UK for >5 years they don’t even tax capital gains at all. And TW doesn’t care about foreign income up to 1M so I make sure to keep my “income” below that.

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