Hello
I plan to leave Taiwan next year.
If I understood correctly, I will
Be staying less than 183 days and will be a non tax resident. My income will be tax at 18%
What I’m not sure about if i can still claim various deductions and allowance as a non tax resident? Normally I get a personal allowance for my self and salary exemption etc.
Thanks
You won’t get any of the standard deductions, and the higher tax rate (18%, but 6% for months in which you earn under a certain amount) applies.
Ouch, that sucks, how about allowance?
Is there any thread on exit tax planning to minimize the pain?
Stay less than 90 days if possible?
My understanding is that since I’m working for Taiwan company I will have to pay Taiwan tax even if I stay less than 90 days?
Sorry, my fault. You’re right.
Anyone know if I will get any allowance or deductions if I’m not a tax resident?
Judging from the lack of responses, this doesn’t seem to be the case.
Also see Individual - Deductions:
Resident taxpayers have the option to claim either a standard deduction or itemised deductions for their income tax calculation purpose. For the 2019 IIT return filing, these deductions are as follows.
Note that non-resident aliens are not eligible for any deductions.
Another take might be consulting a professional who is an expert in the tax laws of the country you’re moving to: Maybe there is a tax treaty in place between that country and Taiwan which allows you to pay taxes only in that country (and not in Taiwan). Or maybe the other country might allow you to credit taxes you paid in Taiwan against taxes paid in that other countries. So even if you might not get out of the tax obligation in Taiwan, the situation in the end could still be like having paid taxes in your new home country for the entire year.
Thanks
So my take away is my tax is going to be bad on my exit year. Not getting 200k deductions and getting tax at 18% 