American doing visa runs - US Taxes

They can do, given that the Income Tax Act doesn’t make a distinction based on ARC status.

Especially if you later file taxes or apply for certain types of ARC, and they inquire about previous tax years. :whistle:

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Apart from sorting out the legal work part, US taxes work the same as in any other situation you are working abroad. There are two options : foreign tax credit (FTC) or foreign earned income exclusion (FEIE). FTC usually makes the most sense if your tax rate is higher in Taiwan than in the US. And FEIE only taxes what you make above I believe $106K now. FTC has a cap as well so you shouldn’t expect you’ll get a full refund on taxes you pay in Taiwan.

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FEIE for this year is $120k. With the way the exchange rate has been headed, that’s a lot more NT than it used to be.

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yes, but if he is working for American company, paid into a USA bank account, and doeant have any accounts or benefits here (e.g. health insurance ) he is just a long term tourist.
its not different then me going to Canada for the summer and aswering work emails while there, i wont have tax liability to Canada, will I?

working for a TW company while here on tourist visa is the illegal part.

No he’s not. Taiwan’s laws already state that ANY labour done by a foreign national inside the country is illegal without a work permit. And Taiwan’s laws state that anyone here over 183 days is a tax resident even if they are not.

Two things wrong with this.

Answering a one off email is completely different than spending your day working. Labour isn’t defined, but answering an email is going to be treated very differently. This is not what he is proposing to do. He wants to nomad here. That is completely different.

And he goes to the tax office, brings all this money in and spends years here. One day they’re going to start asking questions.

No. ANY work for any company anywhere in the world within the confines of the Free Area of the Republic of China done without a permit or rights to work is illegal. Full stop.

On top of that, you are operating contrary to the purposes of your stay. Sending a one off email can be argued. Someone engaging in full time work? Much different.

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it is very possible MOL says differently. They have said behavior that doesn’t impede employment opportunities for locals and isn’t served for locals is not included in “work”.

Try that in the US if they ask you at the border about the purpose of your stay: “Oh, I am working remotely for a European company. But I will only get paid in EUR to a bank account in Europe. So I am here as a tourist and totally not working!”. Easy way to get deported before even setting foot on US soil…

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Even if I play devil’s advocate, you are definitely behaving contrary to the stated purpose of your stay.

Would you tell the border officer the truth?

if your purpose is to enjoy living in taiwan, it isnt contrary to continueing your remote work while you stay here.

If that were the case then I wouldn’t be paying taxes, but I definitely pay taxes despite not earning anything from a Taiwanese company.

A visa free stamp is not for the purposes of living in Taiwan.

A residence certificate is for living in Taiwan.

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definitions of reside or work of tax office and other agencies are different.

you can change the “living” to whatever word you like. how about “life”.

It doesn’t matter what random words you say. Foreigners here have official purposes.

It’s stated on your ARC card.

Visa free is for tourism. Some forms of business dealing. Activities that do not require a permit.

completely wrong.

https://www.boca.gov.tw/cp-149-4486-7785a-2.html

I think you are mistaken.

Definitely not for living and nomading.

You proved yourself wrong.

Those who have entered Taiwan visa-free for purposes that do not require a permit—such as engaging in tourism, visiting friends or relatives, attending social events, conducting business, attending exhibitions, and engaging in fact-finding missions or international exchanges—who then intend to engage in activities that, according to the laws and regulations of relevant agencies, do require a permit must still obtain such a permit. Those who intend to enter Taiwan for purposes that require qualifications, such as religious work, must obtain a visa from an ROC overseas mission before entering Taiwan

Where does it say nomading?

Where does it say living?

You need a permit to live here.

To use your words. Completely wrong.

to reside here means to stay for more than 6 months for nia. if you leave before you overstay your visa exempted stay duration, you are just a frequent visitor. nothing is wrong to visit taiwan frequently to enjoy your stay here, as long as you don’t engage activities you need a permit.

for purposes that do not require a permit

I’m not yet 100% sure whether you don’t need a permit for nomading, but the wording of MOL’s interpretations sounds so.

you don’t like the word living, then you can change it being, staying, visiting, experiencing, or what so ever.

they don’t say you should not be in taiwan for more than 6 months without a residence permit. you can just get a resident permit when you stay in taiwan for more than 6 months for certain purposes.

So if your intention is to live here without a permit and lying to border officers, you are committing an offence.

It is not on the list. Working here requires a permit.

Words have definitions @tando

These words are not the same. OP has specifically expressed their intentions to live here.

what is not on the list is judged on a case by case basis, based on the philosophy of the ESA, which is to protect local employment. it is very possible that nomading is in the 5th category.

  1. Other behaviors that are not for the purpose of providing labor services to anyone within the territory and do not hinder the employment opportunities of nationals.

i’m corrected if you already confirmed at MOL that it is not the case, though.

does op do so? what do you mean by living? which of laws say you need a residence permit to be in taiwan for most of a year? what is the difference between long term tourist with remote work and someone living here? if you have a passive income to support you or staying a hotel doing visa runs is ok?

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Lots of tourists, maybe most, are still in contact with their office back home either with an email or a phone call with a boss or weekly telecon or something even when they’re here on vacations so.

Staying in contact with your business back home isn’t going to be a problem as long as it’s not interfacing or affecting anything to do with Taiwan.

If doing business in and around and with Taiwan businesses then the appropriate Visa is required.