The Taipei Times reports that the tax exemption for US citizens may end if Republicans get their way. This would mean that you would not only have to pay Taiwan tax, but also a portion of US taxes. I suggest you make your voice heard to your local (would be) congressman/woman on this issue:
Note that the Taipei Times (as usual) made a mistake in reporting:
To qualify for what is known as a Section 911 exemption, you must be a US citizen and live outside the country for an entire tax year, or 330 days in any 12-month period.
This is only one test to qualify. You can meet this “physical presence test” or you can claim that Taiwan considers you a tax resident for the entire year, meaning that you can be in the US more than 35 days a year since you are officially considered a tax-paying resident of Taiwan.
Remember, the myth that you as an American citizen working abroad do not have to file taxes, even if you end up pay no tax under the current expemption up to 80K, is a just that: a myth. Uncle sam wants you to report every year no matter where your income comes from. If you have a heartbeat, you file.
If you don’t report for seveal years while in Taiwan, then go back to the US some day, beware of a surprise audit by the IRS. They will be very curious where you got your income for those years. You will be found out. And it isn’t pleasant.