hi,
I was on a student visa for over a year and then I changed to an ARC and work visa.
I pay tax at 20%. I thought I wouldn’t have to pay tax at 20% because I’ve already been in taiwan for over 183 days (3 years actually when i got this ARC)
The ARC is through my friend’s school and it’s a newish school so she doesn’t really know what the deal is.
It’s also awkward to discuss it without me being sure of how much I should pay.
I get about $30,000 a month and now the tax rate will be 10% after a year.
I trust my friend I just don’t know if her accountants know what they’re doing.
Thanks for any help and I’ll be reading the other posts to get all the info I can.
Cheers.
In that kind of situation, the company CAN pay you with 6% tax rate, or with the 20%. It doesn’t matter in the long run, because you’re entitled to the deduction, so when you get your tax return next year, you’ll get all the difference between the 20% and the 6% refunded (plus more for deductions). Think of it as compulsory savings.
I can’t find the latest info, but to be taxed at that magical 6 percent you’d have to have made almost nothing the whole year. A few years ago the maximum to still be at 6 percent was NT$370,000. If that is all you make in a year, you might as well go back home since you would qualify for food stamps.
Your company is most likely disregarding your earlier time in Taiwan. They are probably calculating the 183 days for the time that you have been working for them. Once you exceed the 183 days that you are working for them, they should hopefully drop the tax rate down to 6-10%.
As someome else stated, look at it as forced savings for now. Make sure that your pay slips clearly state how much you have paid in tax.
Wolf, rather depends on how much allowances you can get, as the tax brackets are on taxable income not gross income. It is quite possible to make over a million a year and still only pay tax at 6%, personal circumstances etc.