I filled already few income tax statements in the past years but this year, I have a trouble because I was for the first time outside Taiwan at the end of last year between 23th December 2017 and 5th January 2018. FYI, I stayed in Taiwan at least 183 days last year.
So, in the tab "Taxpayer information "ten “Resident days”, at the question “Departure during the year without entry again within end of year 2017”, do I need to tick yes or not?
If I tick "no’’, my exemption’s amount is 88,000 ntd and my deductions, 218,000 ntd (128,000+90,000),.
If I tick “Yes”, my exemption and deductions are calculated on a pro-rata basis: for my exemption, 88,000*(number of days in TW in 2017)/365 and same for my deductions: 218,000*(number of days in TW in 2017)/365.
Do you know which one I have to tick?
I contacted already my local taxation office but they didn’t seem to really know. At the end, they justified that my exemption and deductions need to be calculated on a pro rata basis via the article 17-1 of the Income tax act: https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340003
but it’s an article focused on people who died or left their job and departed TW, which is not my case! I only went to overseas for vacation and I’m still working in the same company.
I think the departure means something like you leave from taiwan due to the expiration of your ARC. Many foreigners at my company are out of taiwan on Dec. 31, but they get full deduction.
That was also my understanding: you only use the “left Taiwan before year end” approach if you’re filing a “farewell” tax return, not if you’re filing a normal return in May. (But don’t take my word for it.)
If you indeed had spent 183 days or more in Taiwan in the 2017 calendar year, you will be fine.
When I filed my taxes in person, I simply handed my passport over to the tax worker. She scanned it and was able to calculated the days I spent in Taiwan (no stamps in my passport for 2017 as I used TPE’s excellent eGate system). Viola, issue solved.
Tick no, it’s means you left with no intention to return rather than went on holidays. I had a fairly full on discussion with a dragon in the tax office previously where she insisted that as I was away over Christmas and new year that I couldn’t claim full deductions, had to visit several times before a manager came out and said I was correct. In those several visits I seen that she screwed over quite a few SEA workers with the same BS. Remember the system is supposed to be equal, Taiwanese citizens wouldn’t get screwed because they went on holidays over Christmas and new year.
Thanks everyone for your answers. It was very helpful for me.
FYI, I went to the tax office this morning by ticking before on internet ‘no’ at the question ‘Departure during the year without entry again within the end of year 2017’.
It was very fast, all done in 5 min knowing that 2 days ago, the same tax office told me after several phone calls and emails that I have to tick ‘yes’ according to my situation (on vacation abroad the last week of last year and the first week of this year). They are really not efficient !
Hi @nicoczyck. As I understand, you got the pro-rata based on how many days you stayed in Taiwan? Did you get the same calculation the following year?
I’m trying to understand this rule that many foreigners here are not aware of. I’m trying to improve the tax calculator, and trying to confirm “rumors” that this pro-rata rules exists and is applied. I’d appreciate your help here!
this is about the income from employers in foreign countries. If your stay is less than 91 days, all are exempted. If 91~299 days, pro-rated. 300 days or more, fully counted.
!