It depends on how many days you stayed in Taiwan. The tax office current “rule” is that foreigners will only become a tax resident after staying in Taiwan for 183+ days in a particular year. As far as I know, it doesn’t make a difference whether one has an ARC, APRC or neither.
Also see this thread - user @Mataiou has filed an official complaint about this issue.
I am having a hard time with this, but unfortunately there is a loophole here.
CRS and tax withholding have 2 separate standards here, so there is asymmetry.
Banks are required to withhold the tax on interest when the interest is paid, or incur in immediate fines.
This matter is not regulated by the FSC, but by the Tax Bureau and so refer first to the Income Tax Act and in particular to Standards of Withholding Rates for Various Incomes by the Ministry of Finance.
Art. 7 of the Income Tax Ac…
as the things stand today, this is how it works:
Citizens with household registration: always considered as domiciled unless the citizen him(her)self proves otherwise
NWOHR and foreigners (both PR and not), but with an ARC/TARC and permit to stay longer than 1 yr: always considered as not domiciled, so every year need to prove their 183 days residence in TW
foreigners without ARC or with permits to stay less than 1 yr: here really not much to comment, if a foreigner stays more than 90 days has to pay taxes in TW too as a non-resident, so either need to prove that the residence was less than 90 days not to pay taxes or more than 183 days to pay with resident rate. Mainly students and working holiday visas are in this.
However, 1 and 2 should be equal as per logic and anti-discrimination.
1 Like