Do Foreigners Pay Higher Effective Tax Rates than Taiwanese?

@Furious000 's point may be it is not as easy as locals do, because foreigners most provably need some extra documents.

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A tax is a compulsory contribution to state revenue, levied by the government on workers’ income

It is levied by the state and paid for by the state and most foreigners will never qualify for it. Especially if they come from SEA as they will be required to leave Taiwan after a number of years.

You look at the world through narrow lenses. It was never about you. It was about the majority of foreigners.

So no foreigner pays any tax?

It’s clear what they meant. “It” referred to pensions.

Yes there is a Foreign Earned Income Exclusion if you reside in Taiwan and are tax resident here as US Citizen or Dual Citizen

The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2020 (filing in 2021) the exclusion amount is $107,600 .

Are you talking about working the full 15 years to access retirement in Taiwan via monthly payments from the New Labor Pension? I could be wrong but if you do not work all 15 years in Taiwan you can go to the Ministry of Labor and withdraw the money you put in each month as a lump sum including a min 2% interest rate or higher if the going rate rises above 2%
However, this has nothing to do with the income taxes you pay. Paying into Labor pension scheme is separate.

That was the rule the last time I checked 2 yrs ago. Working 15 years just gives an additional option to disperse your retirement savings monthly instead of one lump sum. I think you have to be age 60 to begin withdraw.

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Is there a tax on being a dick in Taiwan?

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There doesn’t seem to be.

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You realize your income tax and Labor Pension are different right? What someone pays in income tax has nothing to do with retirement pensions as that is paid separately but also monthly. I am aware of ZERO countries that considers income tax payments as state pensions or retirement.

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I don’t think a SEA “OFW” has the option to pay into the Labor Pension scheme here, so they’re not losing any money to the system, as they’re not paying into the system. Labor Pension is currently only open to Permanent Residents and Foreign Professionals with Permanent Residency. The Labor Pension plan isn’t that great in Taiwan anyways. 2% is dismal.

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This thread made me curious: I filed my taxes for 2020 here a couple of months ago. I was given no refund, even though I was taxed at 18% each month since August 2020. I was told I did not get a refund because I was (barely) not in Taiwan for 183+ days for 2020. So, I was told I do not get a refund now, but I will get one in 2022 for filing 2021 taxes for the months in 2021 that I am being taxed at 18%. Is that correct? I am admittedly pretty confused about this - I was under the impression I would get a refund for the 5 months in 2020 I was getting taxed at 18%…

I’m an ARC holder. I’ve never paid into the pension scheme and nobody’s ever gone after me.

My understanding is you don’t have to pay into it. Its not a slush fund like the US Social Security for other people retiring. The amount you pay in gets saved for you only with a min guarantee of 2% APR. It doesn’t go into a communal pot. You get back what you put

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So it’s a savings account.

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yup with a min 2% APR guaranteed by Bank of Taiwan. The only benefit I see is for the New Labor Pension Act there is a 6% employer contribution along with a standard 6% employee contribution.

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Thanks for the clarifications!

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I’ve paid various moneys into compulsory pensions in Taiwan over the years. I have no idea where that money is and how I could access it. But it certainly is compulsory otherwise I would have opted out.

https://www.bli.gov.tw/en/0011692.html

Ok apparently you have to be age 60 before you can withdraw money.

  1. When a laborer attains the age of 60, he/she may withdraw labor pension under the new system regardless of he/she is still at a job.

  2. A laborer may apply directly to the Bureau and no longer needs to apply through his/her employer.

  3. Applications may also be filed through Online e-Service Portal with Citizen Digital Certificate (card reader is required). Please go to BLI’s webpage (https:// edesk.bli.gov.tw/na/) and choose "Labor Pension Applications " under the “Online Applications” section. (currently Chinese version only)

That looks like they’ll lump sum it to you when you turn 60. I thought you needed an APRC or five years in your last job but maybe they’ve dropped those requirements.

Would be nice if I have a nice little nest egg waiting for me.

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My Taishin ATM card lets me check exactly how much I have in my Labor Pension account from a Taishin ATM. I had to apply for the Ministry of Labor version of the ATM Card at my bank. I believe any major Taiwan bank has this(Cathay, Taishin, BOT), just gotta ask them to apply for the Ministry of Labor ATM card and they will cut up your old card. It took about 1 week to receive the new card.

https://www.bli.gov.tw/en/0011709.html

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