How Much Tax After the First Year?

After completing a 9 month contract, the position was renewed last December (before it finished) and I took a month off before returning 2 February I assume that I do not now revert to an 18 per cent tax rate again? It is the same job in a government school and the contract was renewed. Theree is no probationary period so I am assuming tax will not revert either. There was no gap in the ARC as I got an extension for the period in between.

However, I am still quite new here in Taiwan and do not know what is normal. I assume the lower tax rate will continue?

There’s no rule set in stone about the 18% tax rate. Push them for the normal rate, or, better, 0.

Doesn’t sound encouraging. You could stay in the same job for 10 years with no breaks in ARC and keep going back to 18 per cent tax?

See it as a savings plan. You can’t spend the money and get a refund every May.

Some good tips here:

Thanks. I would say the answers in that thread make it clear that withholding is not easy. Maybe you can do it if you can convince your company you are not absconding prematurely or get a Taiwanese person as guarantor: preferably both I expect.

Bottom line is the more official your job is the more likely you are to get hit. I work for the government and they withhold as a matter of course… Not nice, but I will need to view it as a savings plan. Not pleasing though.

Definitely not.

When you get an APRC and no longer have to file taxes to renew your ARC you can drop off the grid.