Do Foreigners Pay Higher Effective Tax Rates than Taiwanese?

Okay. “highest rates of tax” not “highest tax rate”…
Can you please elaborate what deductions are we not entitled to?

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I don’t know of any deductions for which foreigners are specifically ineligible either (resident foreigners I mean - nonresident foreigners here for 90-183 days or whatever it is can’t claim any deductions or exemptions, but they’re probably the exception).

However, there might be something in the original claim in the sense of foreigners paying more income tax on average, given the typically higher incomes of Western foreigners, fewer dependents to claim deductions for, and the fact that most foreigners can’t really stay here without working and tend not to retire here (so the foreigners who can stay tend to be “productive”, as opposed to retirees or children). Would need to see the numbers for that though, of course.

Have you been able to claim your parents as dependents. That’s the most obvious deduction not easily available to foreigners.

Also, had the USA signed a double tax treaty? I’m not 100% clear on that.

My parents aren’t dependents. Do Taiwanese claim parents that live overseas as dependents? If so, that sounds like fraud if you ask me. I don’t know many foreigners who have dependent parents here if there even is such a visa. It doesn’t really sound like a discrimination issue, but something that is largely situational.

What are foreigners missing out on that an equivalent Taiwanese gets?

I’m not american and double tax is not a deduction. But many Taiwanese are, I would assume Taiwanese Americans have to deal with the same issue as Foreign Americans here.

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You are lucky you are not American than.

But this deduction is available to locals. So foreigners on average miss out. Unlucky.

You just need to have evidence of supporting your parents as dependents.

Do you send money to a retirement fund in your home country? If you do make sure to mention it to your CPA.

It’s not relevant.

Many Taiwanese are American dual citizens and would be obligated to file taxes in the same way. Therefore foreigners are not missing out in this case. If they’re not doing so, they’re not getting special treatment, they’re breaking the law.

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It is. You potentially benefit from a tax treaty. Not all foreigners do as you point out.

It’s not relevant because an equivalent person with Taiwanese citizenship would have the same tax obligations.

I don’t benefit from a tax treaty. Outside the US, almost no countries tax based on citizenship. They only tax based off residency. I’ve not filed a single tax form nor have I paid a single cent to my countries since living here as my residency in those countries has been cancelled.

Again, you’re not answering the question.

What is an equivalent Taiwanese getting that we’re not?

If two people were the exact same. Same income, same everything. Only difference is one is Taiwanese and the other is a foreigner, what is the foreigner missing out on?

Foreigner has no parents, Taiwanese person has no parents.

You’re playing games.

If you don’t know, just say you don’t know. No shame in not knowing.

:roll:

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Ask your CPA.

I’m not doing your research for you. You said something, you back it up.

I’m just trying to find out what foreigners are specifically excluded from.

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Ok. You pay money each month into a retirement fund in Taiwan. The majority will not qualify for reviewing the retirement benefit.

My Taiwanese retirement plan is set. Is yours?

You may qualify for the retirement fund but when you cannot stay more than 12 years as a SEA you will pay money into something you can access.

It’s a tax without being a tax.

A local will in all matters being equal over 5 years. Happy?

Taiwan opened up retirement funds for foreigners with permanent residency.

Anyone with an APRC can claim them.

That was three years ago.

https://www.bli.gov.tw/en/0013228.html

How many APRC will stay until retirement? Or how many qualify for APRC. How many SEA qualify for APRC.

Don’t have to be in Taiwan. Keep your bank account, just like the rest of the Taiwanese.

It’s not really relevant. You haven’t really answered which deductions are specifically not for foreigners.

Many Southeast Asian people don’t even make minimum wage, so they’re likely not paying many taxes if at all.

It’s 5% up to $540000/yr and that is $45000/m

Many make under $20000 so…

You want to get bogged down arguing the minutiae.

Once again read what I said.

Will a SEA worker pay into the retirement plan? But they don’t benefit?

Tell me. What is a tax?

Is this not what you said?

What deductions are we missing?

Pensions are not considered taxes.

You’re all over the place. First it was allegedly deductions and public works

Then it was Americans taxing

Then it was for nonexistent parents.

Then it was for SEAsians

Now it’s for pensions.

Which deductions when I file my taxes are foreigners specifically excluded from?

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Deductions for dependent parents are easily available, even for parents who do not live in Taiwan.

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As others have said, untrue. I’ve been claiming them as dependents for years. Quite easy.

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