Someone mentioned in another thread here that the rule of 183 days (and 18% taxes) applies only to those who are newcomers in Taiwan. I received a notice from our company accountant that according to the new law, they are going to deduct 18% from my salary during the first six months. I have been working in the company for 9 years and have PR status. Can you refer me to any document (in Chinese would be better) clarifying this situation ( for which category this 183 days rule apply)? thanks a lot.
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Thanks, but this one also only separates foreigners into residents and non-residents according to 183 days, there is nothing about “if this is your first 183 days in ROC”…I am looking for the official clarification of the following:
“18% withholding tax rate will be applied to all foreigners (people who don’t have a Taiwanese ID) the first 183 days of your residence in Taiwan and 5% the rest of the tax year”.
Great f%&#in’ thread!
What is with this new 18% tax shite?
I would love to find the ACTUAL written law that allows Uncle Sam Wong to steal my money January through June!
T
This seems to be the Thing, If anyone can find the Chinese version, would be much better:
english.moe.gov.tw/content.asp?CuItem=12471
As the text above clearly states, those with permission to stay for 183 days or more, are residents, in this case any APRC holder is a resident, isn’ t it?!
Residents are not withheld 18% … simple … your company is going to keep your 12% for another 6 months!
Uncle SamWong is only KEEPING your money and refunding to you . Its a forced savings plan.
If this was the USA, a buncha people would figure out a way to profit (think PayDay Loans) and fork you money for the first 183 days till your tax rate goes down and collect a big interest rate from ya.
But if you get beyond the scraping for a living stage, this forced savings thing can be seen as a crude 401k ? In a way. Forcing you to get a big refund every year which you can invest (or put in the bank to finance your next 183 days).
I think it’s a scam to screw you out of your final tax refund (i.e. the one after your final year in Taiwan). Unless you’re really well organized and plan it in advance I’d imagine it’d be pretty difficult to get that back once you’ve left.
[quote=“tommy525”][quote=“achdizzy1099”]Great f%&#in’ thread!
What is with this new 18% tax shite?
I would love to find the ACTUAL written law that allows Uncle Sam Wong to steal my money January through June!
T[/quote]
Uncle SamWong is only KEEPING your money and refunding to you . Its a forced savings plan.[/quote]
A very bad forced savings plan. I can make more money investing the money myself than getting a lump sum once a year.
Guys, FYI:
Thank you for your email dated on Feburary 14, 2012, concerning the withholding tax rate for an APRC holder. A foreign national with an APRC is not necessary to be considered as a resident in terms of taxation. According to the Income Tax Act of the R.O.C., the only criterion judging a foreign taxpayer is a resident or non-resident is the 183-day rule. That is, if a foreign taxpayer stays in Taiwan for 183 days or more in a taxable year, he/she is a tax resident,otherwise he/she is a non-resident and the tax rate will be fixed at 18%. However, if your income has been withheld at the tax rate of 18% by your employer for the period in which 183 days had not been reached,you are still eligible to claim the over withholding tax back by filing your tax return in the following year once you become a tax resident by the end of that year. If question remains, please feel free to let us know by email at A0503311@ntat.gov.tw. Thank you for your e-mail. Sincerely yours, Taipei National Tax Administration,M.O.F No.2,Sec.1,Jhonghua Rd.Taipei,10802,R.O.C Tel:02-23113711ext1116
The employer does not have to withhold the 18% tax. But if he doesn’t and the A§RC holder doesn’t pay his taxes, the employer is on the hook for the unpaid taxes. Most employers don’t want to take that risk, so they withhold.
Arguably, the same applies to Taiwan nationals, but since this would be highly unpopular, I don’t think the tax authority is willing to consider this.
Another example of rules that end up placing additional burdens on foreigners even if do not intentionally discriminate against foreigners. In other words, This is Taiwan.
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[quote=“taipeitos”]Guys, FYI:
Thank you for your email dated on Feburary 14, 2012, concerning the withholding tax rate for an APRC holder. A foreign national with an APRC is not necessary to be considered as a resident in terms of taxation. According to the Income Tax Act of the R.O.C.,[color=#FF0000] the only criterion [/color]judging a foreign taxpayer is a resident or non-resident is the 183-day rule. That is, if a foreign taxpayer stays in Taiwan for 183 days or more in a taxable year, he/she is a tax resident,otherwise he/she is a non-resident and the tax rate will be fixed at 18%. However, if your income has been withheld at the tax rate of 18% by your employer for the period in which 183 days had not been reached,you are still eligible to claim the over withholding tax back by filing your tax return in the following year once you become a tax resident by the end of that year. If question remains, please feel free to let us know by email at A0503311@ntat.gov.tw. Thank you for your e-mail. Sincerely yours, Taipei National Tax Administration,M.O.F No.2,Sec.1,Jhonghua Rd.Taipei,10802,R.O.C Tel:02-23113711ext1116[/quote]
The Tax Administration told you that? How come it doesn’t match with their own fucking rules?
ntat.gov.tw/county/ntat_ch/aig201_list.jsp
Check out the fifth item:
五、問：所得稅法規定「中華民國境內居住之個人」與「非中華民國境內居住之個人」如何區分？
答：下列2種人是屬於「中華民國境內居住之個人」：
(一)在中華民國境內[color=#0000FF]有住所[/color]，並經常居住中華民國境內，無論於一課稅年度內居住有無滿183天者。
(二)在中華民國境內無住所，而於一課稅年度內在中華民國境內居留合計滿183天以上者。
不屬於以上所稱的個人，為「非中華民國境內居住之個人」。
(Translation:
Q: What is the difference between “residents of the Republic of China” and “non-residents of the Republic of China” regarding the Income Tax Act of the ROC?
A: The following two categories of individuals are regarded as “residents of the Republic of China”:
- An individual who[color=#0000FF] has registered residence in the Household Registration Office and [/color]frequently stays in the ROC is regarded as a ROC resident, regardless whether his or her stay in the ROC is less than 183 days.
- An individual who has no registered residence in the ROC but stays for 183 days or longer is regarded as a ROC resident.
Individuals not falling into the above-mentioned categories are regarded as “non-residents of the Republic of China”.)
English text found here: ntat.gov.tw/county/ntat_ch/n … 04-1-5.jsp
Ok, here we go…first there is an obvious difference in Chinese and English - 有住所 is translated as has registered residence in the Household Registration Office
When I asked the people at banqiao Tax office to explain to me what is 有住所 according to their definition, the answer was: Foreigners can not have 住所, only taiwanese have. They said that 住所 means Hu-kou (which is equal to Household Registration ), but on the other hand, any Chinese language specialist would disagree with that.
Also, another person from Taipei tax administration explained that according to her definition, 住所 means domicile. In this case, those who live in Taiwan permanently and have a permanent address on their APRC, most likely fall under this category.
Yes, this is Taiwan…
[quote=“taipeitos”]Ok, here we go…first there is an obvious difference in Chinese and English - 有住所 is translated as has registered residence in the Household Registration Office
When I asked the people at Banqiao Tax office to explain to me what is 有住所 according to their definition, the answer was: Foreigners can not have 住所, only taiwanese have. They said that 住所 means Hukou (which is equal to Household Registration ), but on the other hand, any Chinese language specialist would disagree with that.
Also, another person from Taipei tax administration explained that according to her definition, 住所 means domicile. In this case, those who live in Taiwan permanently and have a permanent address on their APRC, most likely fall under this category.
Yes, this is Taiwan…[/quote]
Regardless of the translation, if you’re married to a local you are on the hukou AND you have residence - so the tax people who told you the only criterion is residence period are wrong.
FWIW, I disagree with the interpretation that APRC holders have zhusuo, solely because I know that some nitwit somewhere in the government would equate that with household registration, but the married arc holder fulfills all interpretations and definitions. So again I’d still like to know why the tax office can’t follow its own fucking rules, or even understand them.
Well, then you can try to find standing to take them to court to enforce your reading.
In the meantime, your employer can and probably will withhold 18%.
I think that is where we are.
Note: lots of people are confused about the distinction between a domicile and residence/hukou.
[quote=“Feiren”]Well, then you can try to find standing to take them to court to enforce your reading.
In the meantime, your employer can and probably will withhold 18%.
I think that is where we are.
Note: lots of people are confused about the distinction between a domicile and residence/hukou.[/quote]
Including the tax bureau I guess.
Ironically, I’m the only person I know who needs to neither go to court nor talk with his employer.
[quote=“spaint”][quote=“Feiren”]Well, then you can try to find standing to take them to court to enforce your reading.
In the meantime, your employer can and probably will withhold 18%.
I think that is where we are.
Note: lots of people are confused about the distinction between a domicile and residence/hukou.[/quote]
Including the tax bureau I guess.
Ironically, I’m the only person I know who needs to neither go to court nor talk with his employer.[/quote]
Yes, not all employees are doing this.
Feiren, do you take 有住所 to mean “owns a domicile” or “is domiciled”? It seems to me the tax office runs with the second definition., going so far as to add the household registration requisite in English.
If they went with the first version, half the population wouldn’t be residents for the first six months of the year.
bumping a decade old thread… anyway, I have a question about the 18% tax rule for APRC holders… I have heard that APRC holders do not EVER need to do this, even in the first 183 days of the year. Is this true? Can someone please provide a link for the relevant law where this is stated (if it exists)?
Hasn’t changed.
No matter your visa, during the 1st 183 days of physical presence in Taiwan, withholding anything less than 18% is at the employer’s discretion.
Personal example: accountants at public elementary schools are instructed to do 5% for teachers with APRC or JFRV, and 18% for teachers on an ordinary work visa.