I’ve found myself at a crossroads and could really use some insights from those who might have experience or knowledge in the realm of taxes and expat life in Taiwan.
I’m currently in a position where I have two options on the table—applying for the Gold Card or pursuing Taiwanese dual citizenship through NWOHR to TARC.
My primary goal is to optimize my tax situation, especially considering that I fall into the >6.7M NTD category as an overseas earner, which could imply AMT tax implications.
I’ve heard that the Gold Card offers some tax incentives for foreign professionals, but I’m also interested by the possibility of becoming a dual citizen and navigating the tax landscape that way.
Which option do you think provides better benefits and is more cost-effective in terms of tax implications? Are there any hidden nuances or factors I should consider that might sway my decision one way or the other?
If that’s your only goal, getting a gold card instead of citizenship might actually be beneficial.
If you earn tons of money from overseas (dividends, rental income, etc.) you might actually be able to live tax-free in Taiwan during the validity of your Gold Card. Be aware, though, that salary income from overseas doesn’t fall into the category of „overseas income“ (not sure about your specific situation).
The law changed and will be implemented in the next few months. I see in the other thread you have a parent who had hhr at the time of your birth. Going through this route, by the time you get your documents together, you wont need a TARC and residency to get hhr.
This is more of a question since it also concerns me. AMT only applies if you have more than $6.7 of taxable income? If for example all of this was from services not rendered in Taiwan and therefore not reportable on the regular return without AMT, then it would not trigger AMT?
What is the stuff that Gold Card holders deal with it? Curious to know the struggles. And does opening an LLC in Taiwan have a lower tax rate for overseas income? (currently overseas income from a business and stocks is tied to my name)
Overseas income = overseas rental income, dividends, etc.
You normally need to pay taxes on these after the first $6.7 million. Gold Card exempts you from paying this for the first five years in which you are a tax resident.
Taiwan sourced income = any income you make from the work that you performed while living as a tax resident in Taiwan, regardless of the location of the company that paid you.
You normally need to pay taxes on all of these. Gold Card gives you a tax benefit of only being taxed on 50% of this income above 3 million NT annually, for the first five years in which you are a tax resident.
within 5 years starting from the tax year in which the foreign special professional for the first time meets the conditions of residing in the R.O.C. for 183 days or more, and having a salary income of more than NT$3,000,000, half of the amount above the NT$3,000,000 in each such tax year is excluded from the gross income. In addition, in each tax year, if there is overseas income set forth in the provisions of Subparagraph 1, Paragraph 1, Article 12 of the Income Basic Tax Act, it is also excluded from the basic income.
For example, Kevin, a French engineer, obtained a foreign special professional employment (work) permit issued by the Ministry of Labor in 2022 and met the three aforementioned requirements. He resided in the R.O.C. more than 183 days in 2022, and had a salary of NT$8,000,000 (after deducting the special deduction of income from salaries or necessary expenses) related to his special professional work and overseas income of NT$7,000,000 in 2022. The tax incentives period is from 2022 to 2026, and the amount of income with tax incentives for the individual income tax return for 2022 is calculated as follows :
1. Amount of non-taxable salary income = (NT$8,000,000 – NT$3,000,000) * 50% =NT$2,500,000
Amount of taxable salary income=NT$8,000,000 – NT$2,500,000 = NT$5,500,000
2. Overseas income NT$7,000,000 is excluded from the basic income