Freelancing legality

[color=#0000FF]Mod’s note–this was split from a classified ad.[/color]

So applicants must have either APRC or JFRV or be ROC citizens, correct?

I don’t know the ins and outs of it, but somehow freelancing (稿費) is acceptable even without a work permit. How do I know this? Because I know people (not listing names) who have done translations/other work for government agencies, all of whom have said it’s fine and made payments as usual. They even get tax slips for it.

A lack of enforcement in individual cases doesn’t mean it is legal and you can and possibly will face deportation for freelancing sans open work rights or the relevant permit. That’s at least what is written in the Employment Services Act and that is the law.
Fun fact: you are also liable to pay income tax on pay from illegal work, the tax office could not care less about your work permit or the lack thereof.

I made the recommendation in the feedback forum that all persons posting job classifieds are required to include information on the legalities of the employment situation.

The deal is that if you take on illegal work, even for government agencies etc., and pay tax on it, your total gross income at the end of the year will no longer add up to the total paid to you by your ARC employer. When the labor people see that difference the next time you go to renew your ARC, they may or may not reject your application depending on the discrepancy, their mood, the weather etc. This situation has happened to people here.

Yup, that pretty much sums it up. Not paying the tax won’t solve anything though as you are on the tax records of the employer. Tax evasion is a crime, too.

Interesting, because I’ve taken cases directly from the tax administration…

What do you mean?

The tax office turns a blind eye toward illegal work. They just want you to pay tax on all work and don’t care what trouble it gets you into down the road with immigration/labor.

I’ve also taken cases from the immigration agency… >_>

Well the ones who care sit at the CLA.

I’ve translated labor-related stuff, too, but I can’t remember if the client was the CLA… I think it wasn’t.

I’ve worked with the foreign affairs police, though, with no problems. Shrug.

Yes, and FAP enrol their kids in illegal kindies. It doesn’t mean you can’t get busted. It doesn’t mean you will, either. Grey areas.

The law is clear, just enforcement varies but in case you do get busted you cannot say “But I know 200 people who also do it”! You will get trouble and usually it means leaving Taiwan.

It is legal to freelance as a translator or editor to a certain degree. You declare it as 稿費 with the tax office. Not sure how much you are allowed to earn this way. It’s just one of those odd loopholes that exist, maybe because even the government recognizes its handy to have people around to fix their cruddy English.

That’s basically my understanding. I’ve never had any trouble at all dealing with tax authorities, immigration, or police.

It has to work this way because there’s no way to apply for a work permit for a single case. If you translate an ad for the MRT, the DORTS is not going to be able to successfully get you a work permit for a one-page document. What’s the alternative – go to the handful of people with APRCs or find a citizen?

What about when you have to pay your gaofei to a foreign company or individual? Surely that’s legal. I don’t see why it would be different if the foreign individual happens to be residing in Taiwan.

I’ve got an ARC (married to a Taiwanese) and will get the APRC after I’ve been here long enough, but even then, I’d think twice about take translation jobs from Taiwanese agencies. If you take translation cases from other countries (most of mine are from Europe), then you don’t need to pay tax in Taiwan. If you take one case from a Taiwanese agency - you’ll be taxed for it. I’ve had an accountant check up on this and you can earn up to 1 million NTD this way, without having to report it. Anything between 1 million and 6 million NTD needs to be reported, but not taxed, and anything over 6 million NTD (per year) will be taxed. If a really lucrative/interesting translation job came along and it was from Taiwan, something like doing the subtitles for a movie like Seediq Bale or translating an exhibition for the National Palace Museum, then I would jump IF given the chance. Otherwise it makes more sense (financially) to take jobs outside of Taiwan. I guess it also depends on your goals. If you’re already comfortable financially, then the tax thing isn’t a big issue I suppose.

If you’re making over 6 million NTD a year doing anything, especially translations, we are in such wildly different socioeconomic brackets that I don’t know what to say. :-/

Movies don’t pay anywhere near that much for subtitles unless you have some sort of secret miracle-working technique I don’t know about.

[quote=“Hokwongwei”]If you’re making over 6 million NTD a year doing anything, especially translations, we are in such wildly different socioeconomic brackets that I don’t know what to say. :-/

Movies don’t pay anywhere near that much for subtitles unless you have some sort of secret miracle-working technique I don’t know about.[/quote]

:roflmao:

I’m no where near 6 million! I was just saying what the different amounts were and at what point a freelancer needed to pay tax on money earned from agencies not based in Taiwan. I may have previously stated that after 1 million NTD you need to pay tax, but this isn’t true - you just need to declare your earnings. You’re pretty much safe until you hit 6 million NTD, which is unlikely (if you’re translating).

I’ve done subtitles for 1 Taiwanese movie (when I was in the UK). It was interesting, but the amount of time you need to spend on timing the subtitles and counting characters per line, means that in the end you would have been better off doing regular translation (in terms of fees).

Ok everybody, we need to distinguish between two things here:

Immigration / Labor Law and Tax Law

All of you who say freelancing is legal as long as you declare it on your income tax are dead wrong.

The very basic condition as a foreign national is being allowed to work or render any kind of service. This either requires an individual work permit for each employment situation, an open work permit or an exemption from requiring a work permit. The latter two cases apply to APRC and JFRV only.

Also, if your habitual residence, meaning the place where you spend >183 days of the year is Taiwan, you must pay income tax to the ROC government. It is entirely irrelevant whether your client is overseas. Any accountant telling you otherwise is wrong and tells you so be because in Taiwan many people expect their accountant to give the, a manual on tax evasion. Admittedly the risk of being caught is low in the case of a client from outside Taiwan. Keep in mind that you will still be evading taxes and face dire consequences for your further stay in Taiwan if you get caught.

Here are some law school style examples to give you an idea of real life scenarios:

Story 1

Jack is a cram school teacher from England, he is in Taiwan on an ARC sponsored by his employer. On the weekends Peter translates product manuals for a company and receives 2000 NT$ per page in remuneration. He receives the pay in cash and spends it on a nice meal with his girlfriend right away.

Advise on how Peter may or may not have been in violation of Immigration / Labor Law and/or Tax Law.

Answer: activities beyond the purpose of stay, working without a work permit, tax evasion

Story 2

Michael is a cram school teacher from Canada, he is in Taiwan on a JFRV. After hours, he tutors a student from Hong Kong over the internet. Since the student is not in Taiwan, he does not declare the tutoring fees as income.

Advise on how Michael may or may not have been in violation of Immigration / Labor Law and/or Tax Law.

Answer: tax evasion

Story 3

Steve is a freshman at NTNU from the US, he is in Taiwan on a student ARC. Steve often tutors English at a coffee shop near NTNU. He spends the money on a scooter trip to Jiufen and a few beers with friends.

Advise on how Steve may or may not have been in violation of Immigration / Labor Law and/or Tax Law.

Answer: activities beyond purpose of stay, working without a work permit, tax evasion

Story 4

Robert is in Taiwan on a 90 day visa exemption, in total due to visa runs he has been on the island for 270 days. He found a great way of earning some pocket money to finance his stay in Taiwan and models for 10,000 NT$ per job. He doesn’t want trouble and declares his income to the tax office.

Advise on how Robert may or may not have been in violation of Immigration / Labor Law and/or Tax Law.

Answer: activities beyond purpose of stay, working without a work permit

So… Basically you’re telling me that for translations, companies and agencies can only go for APRC and JFRV and locals. No wonder English language websites and resources are totally incomprehensible.

I’ll do a little bit of research and get back to you.