I know that it is necessary to report foreign incomes if stayed here more than 183days.
More than 1m, need to declare. More than 6.7m, need to pay taxes too.
Now in the situation between 1m and 6.7m which documents were asked by the tax officers to you in order to support the declaration?
What if the job is done as freelance and I don’t have any employer nor a company, thus no supporting documents?
How do your clients know how much to pay if there is no documentation ?
You need to report all income. Foreign income is income that a Taiwanese National earns while working overseas.
Income that you earn while in Taiwan, even if it comes from overseas, is fully taxable at the normal individual income tax rate.
It’s also 90 days not 183.
Let’s say you write articles online and you just verbally agree about a price
So, I work a bit online with freelancers, and this seems a bit odd.
Do I understand you correctly, you write articles for overseas clients. How do you send the articles to your clients? By email and/or other online means I presume. But, any agreement you may have with them you do over the phone so there is no trace on what you agreed?
I never/almost never talked to any of my freelancers on the phone/skype and most is done trough slack, Skype, etc,. and there is atleast an email stating the price per word/hour/whatever. But, you are telling me there is no email or anything with the terms you agreed upon with your overseas client ?
How do you receive the money?
You don’t need to report gaofei (articles etc.) if it’s under $180k/year.
What if you recieve money In the bank account abroad. Into an account under your name. You transfer than the money to taiwan into an account under your name. Same for people reciving rents for example. Maybe they don’t have a contract. This can be. Mine is just an example.
What if for example parents give money frequently (maybe 1000usd a month) into an abroad bank account. Than a person here can transfer from his account abroad into an account under his name right?
in that case, the bank’s record cannot be some kind of supporting documents with your own keeping business record?
Did you already ask to a tax office? Iirc, the one for foreigners in Taipei says they have an English professional consulting service for free.
Yes bank document can really be!
Still this does not provide evidence about the ‘source’ of the income since there is no contract behind the payment. To the eye of the tax agency they cannot say if it’s an ‘income’ from work or just money that you got from someone
So, let me get this clear. You are telling the tax office you earned X amount of money, but the tax office is asking you for proof that you earned X and not 0 ?
What happens if you cannot prove you earned X, will they tax you at a lower rate(i.e. you couldn’t prove that you earned X?)
I doubt the tax office is very strict on when you try to show you earned something, the case would be different if you disputed their higher number.
Can they pull out an higher number from the money you have in the bank account in taiwan and ask you for the source?
my bank record says the deposit is from whom. iirc, if they deposit cash at a counter, they can leave a short note, right?
Actually this can solve the problem in order to keep track of things!
(5) Income derived from written articles, copyright books, musical compositions, musical productions, dramas, cartoons, or as remuneration for speeches and lectures on an hourly basis. However, the total amount of such income for the whole year shall not exceed NT$180,000.
This is very correct!