APRC and 183 days

[justintaiwan]

It’s pretty unfair that it’s at the employers discretion. I haven’t ever had $1 withheld…

[boaz25]

@peterpumpkinslayer

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.

Deliciously Taiwanese

[thaliajdf]

@spaint

Regardless

Do you know if you qualify for tax refund for the following year if you are having 18% withheld as an APRC holder?

[qwert_zuiop]

@thaliajdf

Do you know if you qualify for tax refund for the following year if you are having 18% withheld as an APRC holder?

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.

Take action against Taiwan bank tax residency tax certificates

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…

@Mataiou

as the things stand today, this is how it works:

1. Citizens with household registration: always considered as domiciled unless the citizen him(her)self proves otherwise
2. 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
3. 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.

[thaliajdf]

Thanks for the info! I won’t be in Taiwan for 183 days this year since I came back at the end of July. Does this mean I won’t get any tax refund?

[qwert_zuiop]

@thaliajdf

Does this mean I won’t get any tax refund?

Yes, that will unfortunately the case.

Unless the tax bureau will change it’s interpretation of “residency” and having a “domicile” regarding foreigners by then…

[Mataiou]

Things r still “processing” rey complaint, the control yuan sent a chaser to the tax bureau after I chased them, now I’m in Italy, will check again when I’m back in october

[Andrew]

@Mataiou

Things r still “processing” rey complaint, the control yuan sent a chaser to the tax bureau after I chased them, now I’m in Italy, will check again when I’m back in october

I bet they’ve already “processed” it.

[thaliajdf]

Shit. What a way to welcome permanent residents!
Thanks though, I had been researching all day on this and hadn’t found any clear answer.

[Mataiou]

Well, refusing to comply with an order by the control yuan is a serious constitutional offence, they can delay, but eventually must reply.

[Niurou]

From my past experience complaining, which was in another life as I got burnt out doing so, they always found some way to wiggle out or justify their illegal actions. I was going to take them to court but the time involved was a big one, I didn’t even care about the money aspect.

How law seems to work here is that they don’t go by the letter of it, they basically make up a story as to what is intended by it.

[gavmasterflash]

So I guess I am hearing that having an APRC doesn’t really matter in terms of the 18% tax on the first 183 days, and that it’s up to the employer if they want to charge up to 18% for ANY foreigner, regardless of their status?

I wonder if this would make any difference?

Taiwan's Legislature passes amendments to retain foreign talent - Focus Taiwan

I guess APRC holders can be considered residents if they just average 183 days a year over a five year period. So I guess one could spend all year here on year, f&*^ off somewhere else for the entirely of the following year, repeat this again and then spend at least 183-4 days in country during the 5th year and still qualify as a resident, or tax resident?

I’m probably going to have to contact the tax office like the OP did over a decade ago, and see what they have to say. Wondering if anyone else can chime in with their experience and perhaps save me some time and frustration?

[Andrew]

@gavmasterflash

I wonder if this would make any difference?

It doesn’t matter. It’s talking about keeping the APRC, not tax residence as defined under the Income Tax Act and the tax office’s dubious interpretation of “domicile”.

@gavmasterflash

So I guess I am hearing that having an APRC doesn’t really matter in terms of the 18% tax on the first 183 days

No, it doesn’t matter.

@gavmasterflash

it’s up to the employer if they want to charge up to 18% for ANY foreigner, regardless of their status?

Yeah, but people can dispute that with their employers if they find it unfair. It depends how far they’re willing to take it.

[gavmasterflash]

thanks for the quick reply Andrew… it’s just that at my work there may be a change afoot with this starting in January. I think it happened as a result of the school really fucking things up with a new teacher who left after one school year and probably left before getting to 183 days in Taiwan. The teacher really didn’t seem to like Taiwan in general and she left after completing the school year but the school was not collecting 18% tax like they probably should have. I don’t blame the teacher, she’s an honest person and had no idea about this law and the school didn’t either, because they have been used to dealing with long timers up until recently. I hope that the school will keep it so that APRC holders and long-term staff at the school doesn’t have to pay 18% but that only new to Taiwan foreigners have to do this.

[Mataiou]

@Andrew

not tax residence as defined under the Income Tax Act and the tax office’s dubious interpretation of “domicile”.

still awaiting the result of my complaint on that with the control yuan, they are evaluating how to reply after getting the approval to proceed.

Bureaucracy

[Andrew]

@Mataiou

still awaiting the result of my complaint on that with the control yuan, they are evaluating how to reply after getting the approval to proceed.

This has been like six months now? When your reply eventually arrives, I’m sure it’s going to be awesome.

(Probably not…)

[Mataiou]

so, they have received the replies from the relevant authorities (NTB and Ministry of Finance) and r now processing the “reply” and need to get it approved.

[Andrew]

Looking forward to hearing what BS they came up with!

[Mataiou]

administrative appeal right up if not haha, it will be fun! lots of entertainment for months to come it seems.

[slawa]

@Mataiou

processing the “reply” and need to get it approved