Do these numbers add up?

Legal Taxes
1

lets say, theoretically, that I paid NT$105,000 in taxes (the first 6 months were at 20%) on NT$700,000 salary last year.

my deductions would be NT$74,000 + NT75,000 for salary + NT132,000 for rent (11,000 X 12 months).

this means
700,000
-74,000
-75,000
-132,000
=419,000 in taxable income?

419,000 X 6% = 25140 is the tax owed…

paid NT$105,000 - NT$25140 = NT$79,860 refund!

this just seems too good…is this wrong?

help me out here people, this stuff is terribly confusing to me…further proof that a liberal arts degree isn’t worth the paper its printed on…lol.

2

I believe you can claim a maximum of NT$10k a month for rent (as long as your landlord agrees to let you claim on it - many won’t to avoid paying tax themselves on that rental income).

Also, if your taxable income is NT$431,000 then you’re in the 13% band (which runs from NT$370,001 to NT$990,000).

13% of 431k is NT$56,030 - NT$25,900 (progressive tax calculation) = NT$30,130

So you weren’t far out. Claiming on your rent will make a difference - if your landlord says no, you’ll have to claim the standard exemption (44k) - if this is the case you’d be looking at a theoretical tax liability of NT$40,010. Still, you should be getting a nice sum back from the taxman - mine’s a Guinness, thanks.

3

Thanks for your help Taffy.

I’m gonna speak to my landlord about that…he is a very straight-edged guy, he probably will help me out with the deduction.

Can’t believe how generous the tax situation is here…

A trip to Bali is in my future!..lol