Do Non tax residents still get tax deduction or allowance

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

1 Like

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.

1 Like

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% :frowning:

To get the personal allowance, salary exemption, standard deduction, and dependent deductions, you must stay over 183 days in a calendar year.
Please refer link below
https://www.songjer.com/tax-filing-intaiwan

Yes, that is true. If you work for a Taiwan-registered company, there are no 90 days thresholds. However, if you are employed by a foreign company, you are not required to file this salary income.

The general taxation rules for non-tax residents and tax residents are below:
​1. A foreigner, whose salary is paid by a foreign company, has resided in Taiwan for less than 90 days in a calendar year is not required to file and pay personal income tax.
2. When a foreigner, whose salary is paid by a foreign company, has resided in Taiwan for more than 90 days but less than 183 days in a calendar year, is subject to tax at a flat rate of 18% on Taiwan taxable salary income, regardless of where the remuneration is paid. The filing period is from May 1st to May 31st next year. The taxpayer can file and pay the tax return in advance if he does not intend to stay before the filing period.
3. When a foreigner, whose salary is paid by a foreign company, has resided in Taiwan for 183 days or longer in a calendar year, is subject to the

https://www.songjer.com/tax-when-hired-by-foreign-companyTaiwan taxation when employed by foreign company