I have a friend who is comtemplating on moving to Taiwan sometime around Jan. 2005. He’s a design engineer and need to find a job before relocating. He has a 4 year degree in Computer Engineering from a US university. But he does not speak a word of Chinese. What are his chances of getting a job in tech field there?
He probably has to look for big / international companies or he has to have a certain expertise which others don’t have, i.e. he must be specialized in some field which isn’t really common - though you must be lucky to find a company which just needs that kind of competency.
Computer Engineering is a pretty wide field. If he is sepcialized in certain areas that there is a demand for then maybe he should be fine. On the otherside of that he could be specialized in areas that there is no demand for. On top of this there are alot of computer engineers that are Taiwanese that speak Chinese here, and are more employable from the employers perspective in Taiwan.
Also what sort of experience and in what areas… this will have a bearing on what jobs he could get and the salary that goes with this
He could find a job here that may not ideal for him or his ideal but would offer him the chance to work here in something related to his profession.
He should also try and look around the island at places like Hsinchu and Tainan
Bottom line is that his employer will have to explain to the Council of Labor Affairs EXACTLY why only a foreigner can do the job and not a local person, otherwise his work permit application will be refused.
I work in the legal profession and we have had no trouble in helping local firms obtain work permits for foreigners employed in high tech or professional fields. The main issue is whether a local company or a branch of a foreign company is willing to hire this guy. If so, it doesn’t take much to convince the authorities that the company needs to hire the foreigner. I know of some small high-tech firms where most of the computer engineers are non-locals.
I work in the legal profession and we have had no trouble in helping local firms obtain work permits for foreigners employed in high tech or professional fields. The main issue is whether a local company or a branch of a foreign company is willing to hire this guy. If so, it doesn’t take much to convince the authorities that the company needs to hire the foreigner. I know of some small high-tech firms where most of the computer engineers are non-locals.[/quote]
I have no doubt of that at all. I myself know a good few people employed in the high-tech sector. However, you probably know that the system has changed as of Jan. 15 and that work permit applications for all sectors are now all handled by the Council of Labor Affairs rather than by the various relevant ministries.
One of the sections of the new application form requires the prospective employer to state exactly why he needs to hire a foreigner to do the job.
I don’t know whether or not this really will make a difference, but forewarned is forearmed, IMO.
I work in the legal profession and we have had no trouble in helping local firms obtain work permits for foreigners employed in high tech or professional fields. The main issue is whether a local company or a branch of a foreign company is willing to hire this guy. If so, it doesn’t take much to convince the authorities that the company needs to hire the foreigner. I know of some small high-tech firms where most of the computer engineers are non-locals. [/quote]
His wife is originally from Taiwan, and has the right to establish a household there if needed. Does he still need to apply for a work permit?
I work in the legal profession and we have had no trouble in helping local firms obtain work permits for foreigners employed in high tech or professional fields. The main issue is whether a local company or a branch of a foreign company is willing to hire this guy. If so, it doesn’t take much to convince the authorities that the company needs to hire the foreigner. I know of some small high-tech firms where most of the computer engineers are non-locals.[/quote]
I have no doubt of that at all. I myself know a good few people employed in the high-tech sector. However, you probably know that the system has changed as of Jan. 15 and that work permit applications for all sectors are now all handled by the Council of Labor Affairs rather than by the various relevant ministries.
One of the sections of the new application form requires the prospective employer to state exactly why he needs to hire a foreigner to do the job.
I don’t know whether or not this really will make a difference, but forewarned is forearmed, IMO.[/quote]
Doubtful, since you had to make the same declaration on the previous form for white collar jobs.
Anyway, with Joy’s last post the question becomes academic. If the Taiwanese wife sets up household registration here and the husband obtains a Joining Family Resident Visa, he won’t need an employer-based work permit unless he wants to teach English.
Do you need a work permit for teaching english if here on a residence visa?
If he can find a company that really wants to hire him, then the visa shouldn’t be much of a problem. In fact, there’s a shortage of engineers in Taiwan now, as many native Taiwanese engineers goto either China for the opportunities, or to US for better pay. The Taiwanese government is actually trying to recruit foreign engineers to come work in Taiwan, and is trying to set up a program with tax and housing subsidies and such, but I think that is still in the works.
The fact that he doesn’t speak Chinese won’t stand in the way of his technical work, as most technical terms and many technical manuals, articles, etc., are all written in English. It might be a problem in communicating with fellow co-workers, managers, or if he has to interface with people outside his company (customers, contracters, etc). There was a Spanish guy in our company before, and he got along just fine.
If he’s currently working in the US, or if he has worked in the US in the past in an Engineering/Design position, the very first questions to ask are if he’s willing to agree to:
- a 60-75% pay cut from a typical US salary (but probably only a 30-50% cut in the cost of living for the same type of lifestyle)
- live in Hsinchu (cause that’s where many of the Engineering/Design jobs are)
If the answer to the 1st is no, then well, that’s that. If the answer to the 1st is yes, and the 2nd is no, then be prepared for a long job search.
[quote][quote=“Ben”]
- a 60-75% pay cut from a typical US salary (but probably only a 30-50% cut in the cost of living for the same type of lifestyle)
quote][/quote][/quote]
Does the cost living comparision takes into account the difference in tax rate between the two countries? Tax in Taiwan is only 6%. On the other hand, tax in California, USA for the average engineering salary is 40% or more( 8% social security and medicare, 10% state tax, 25% or more in federal tax.)
Which Taiwan are you living in? I certainly pay more than that.
In fact they deduct 20% every month though I did get a return (for 2002), but effectively it’s far more than 6%.
Still less than Germany however. 
Six percent is the lowest tax bracket. Mine’s far more than that, and I’m very, very far from being in a high bracket, seeing as how I get paid in M&Ms.
I see. I quickly searched for the rates and found this here (amended in June 2003):
- If the annual total net consolidated income is less than NT$ 300,000, the tax rate shall be 6%.
- If the annual total net consolidated income is above NT$ 300,000 to NT$ 800,000, the income tax payable shall be NT$ 18,000 plus 13% for the portion of income more than NT$ 300,000.
- If the annual total net consolidated income is above NT$ 800,000 to NT$ 1,600,000, the income tax payable shall be NT$ 83,000 plus 21% for the portion of income more than NT$ 800,000.
- If the annual total net consolidated income is above NT$ 1,600,000 to NT$ 3,000,000, the income tax payable shall be NT$ 251,000 plus 30% for the portion of income more than NT$ 1,600,000.
- If the annual total net consolidated income is above NT$ 3,000,000, the income tax payable shall be NT$ 671,000 plus 40% for the portion of income more than NT$ 3,000,000.
Whilst the above tax rates are correct, as stated, remember that you can use a multitude of deductions and significantly reduce your taxable income. Deductions for your rent paid all the way through to supporting your parents, brother/sister who’s in uni etc etc. For example on a yearly gross of NT$1m when all the deductions are factored, you shouldn’t be paying much more than 3~4%, but I could be wrong!
Before I changed career, my yearly income was well above NT$1m. My actual tax rate was somewhere around 6%.
Thank you all for replying, I really appreciate it.
My initial impression for the tax rate was 6%, which is wrong. The actual tax rate can be much higher depends on the amount of the income. I’m glad that someone corrected me.
The tax rate for a person who earns NT$1m can be as high as 12.5%, which is less attractive than 6%, but it is still much lower than 40% as in CA, USA.
[quote=“Joy2004”][quote=“Ben”]
- a 60-75% pay cut from a typical US salary (but probably only a 30-50% cut in the cost of living for the same type of lifestyle)
[/quote]
Does the cost living comparision takes into account the difference in tax rate between the two countries? Tax in Taiwan is only 6%. On the other hand, tax in California, USA for the average engineering salary is 40% or more( 8% social security and medicare, 10% state tax, 25% or more in federal tax.)[/quote]
Apologies for the late reply. Just got back from a trip.
The cost of living comparison I made is a ballpark figure, and is based on after-tax income. Cost of living is cost of living no matter what the tax rate is, and that is what the numbers I gave is based on - how much you would have to spend in post-tax money to maintain the same lifestyle as in California, USA.
Consider this example:
Design engineer with 1-3 years experience
Salary working in CA, US = US$85K = NT$2.67M
Tax (approx State, Federal, etc) - 38%
Take home pay = US$52.7K = NT$ 1.76M
Salary working in Taiwan = NT$800K = US$23.9K
Tax (approx) - 11%
Take home pay = NT$712K = US$21.3K
So, the Taiwan take home pay is roughly 40% of the US take home pay. Cost of living in Taiwan, however is not 40% of the US for the same lifestyle. Translating the original numbers, cost of living here is about anywhere from 50-70% of the US. If you live in Hsinchu, then maybe closer to the 50% number. If you live in Taipei, probably close to the 70% number. So, accounting for taxes, and cost of living adjustments, you will make less in Taiwan. The thing to consider however, is if the company will give you stock. In Taiwan, tech companies sometimes give you stock outright, as opposed to stock options. If the company does well, the stock is where the real money is, and your salary is just pocket money in comparison.
[quote=“Ben”]Consider this example:
Design engineer with 1-3 years experience
Salary working in CA, US = US$85K = NT$2.67M
Tax (approx State, Federal, etc) - 38%
Take home pay = US$52.7K = NT$ 1.76M
Salary working in Taiwan = NT$800K = US$23.9K
Tax (approx) - 11%
Take home pay = NT$712K = US$21.3K[/quote]
Using the numbers above, the cost of living in Taipei and California (major city) is about the same.
US: 52,700/12 = 4391.67
1 person apartment ~$1000
(not the best apt either, possibly a studio even)
Remaining balance $3391.67
Figure in food, gas, utilties, car registration, car maintanence, etc.
Should eat up another $3000 leaving you with $391.67 Give or take.
TW: 712,000/12 = 59333.33
1 person apartment = ~$18000 (15+ pings)
(nice location in Taipei; nice studio w/ kitchen)
Remaining balance $41333 (skipping the .33)
Food, utilties, MRT/Bus (scooter gas cheaper)
Should cost you another $30000 leaving you $11,333
(US$343.42 33NT to 1US rate)
*Note: Lifestyle variance will make the numbers flip.
And in Taiwan 30k for a month on just food, etc. is a heck of a lot if you like the local cuisine. If ya dont… then 30k will be just enough.