What exactly is overseas income?
From my research: If I perform work in Taiwan for clients outside that is NOT considered overseas income and I would have to pay normal income tax?
Thanks in advance!
Best regards!
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Typically it’s defined by the source of the money being paid to you/entity outside the country.
Are you sure?
If you browse through the forum or the web it always says the location where you perform the work is crucial – I doubt they would change the definition just for the Gold card…
If you perform the work in the Bahamas and are paid by a Bahamas registered company, how is tax owed here ?
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I asked somebody at the Taipei Office in London about this. If I’m working remotely in Taiwan on the Gold Card for a London-based company, would my salary be taxed to Taiwan or to the UK. She said that it would be for the UK.
I’m under the impression that Taiwan could care less about overseas income. Perhaps while living in Taiwan your income would be taxed? I don’t know.
To my surprise, the woman at the office said that isn’t the case. Furthermore, she confirmed what a poster on the Gold Card FAQ thread showed me, that the UK and Taiwan have an agreement in place so that income won’t be double-taxed by both countries. I don’t know if the US or anywhere else has the same agreement.
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It’s a bigger problem with the US. They have all kinds of requirement for you to file for taxes not to mention FATCA laws.
Yes, this is correct.
US taxes it’s citizens for worldwide income. Unless Ofcourse you’re super rich in which case you don’t owe anything
I thought the IRS loves going after rich people, after all they pay more tax. That is unless Trump is president…
Well the IRS and politicians work with super rich to hide their income. It’s very well known.
Makes me wonder why America hasn’t experienced a brain drain already… I mean the “land of the free” seems to have a third world dictatorship problem.
Definitely a surprise. I would confirm this with a Taiwanese CPA or the Taiwan tax office before getting too excited. Update us if you can.
US has many similar agreements, although none with Taiwan. But an American can still use tax credits, and we also have the FEIE, so it’s not a big deal. It just means in certain unique circumstances, there may be complications since the treaty generally irons out details for special cases.
You’re looking at it backwards. Taiwan taxes you on your worldwide income (after X days). The question you should ask is, why would income from one foreign country be taxed and not income from another foreign country?
Answer, as Alan pointed out:
Exactly. Is there a Taiwan-Bahamas tax treaty?
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It’s because rich or well compensated Americans can instrument their way around tax regulations.
“Land of the free” refers to writings by Francis Scott Key and does not represent US tax policy.
The third world dictatorship comment is non sequitur.
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