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"The tax brackets and rates of consolidated income tax are as follows:
- If the annual total net consolidated income is less than or equal to NT$ 500,000, the tax rate shall be 5%.
- If the annual total net consolidated income is above NT$ 500,000 to NT$ 1,090,000, the income tax payable shall be NT$ 25,000 plus 12% for the portion of income more than NT$ 500,000.
- If the annual total net consolidated income is above NT$ 1,090,000 to NT$ 2,180,000, the income tax payable shall be NT$ 95,800 plus 20% for the portion of income more than NT$ 1,090,000.
- If the annual total net consolidated income is above NT$ 2,180,000 to NT$ 4,090,000, the income tax payable shall be NT$313,800 plus 30% for the portion of income more than NT$ 2,180,000.
- If the annual total net consolidated income is above NT$ 4,090,000, the income tax payable shall be NT$ 886,800 plus 40% for the portion of income more than NT$ 4,090,000."
If you make 100K AUD ~= 3M Taiwan Dollar, that’s 313800 + 820000*.3 == 559800 NT or 18850 AUD
And you will have to pay the national health insurance, 2K NT / mo (I think that’s the cap)
Great info above !
Meantime also important to note that you must be physically present in taiwan (for whatever reason) at least 183 days of the calendar year to get the local tax rate (and avoid paying a flat 20pct) and to avail yourself of the exemptions and deductions .
Your company is entitled to withhold taxes from you each month at 20pct , until 183 days have passed of each calendar year. They are liable for any shortfall on those taxes if you leave before staying at least 183 days of the year.
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Those rates are old no? It’s 18% not 20%.
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Unlike the USA, i dont think taiwan taxes living allowance as personal income. But there may be restrictions. For example, best if the company pays for your rent directly , rather then to you, to pay your landlord.
IN the USA, this is treated as personal income regardless.
IF the company gives you a housing allowance (or pays the landlord directly) or a car allowance, its all personal income FAIK.
Thanks Tommy,
I read up on the KPMG website that is a company pays directly, its exempted from taxes. But as an individual to pay, from what i can gather is a taxable stream of income…
Not sure if moving to Taiwan is worth the hassle…
If you believe moving to Taiwan is a hassle and have alternatives, then I say you should NOT do it. It wouldnt be worth it. Its like marriage. You have to be 100pct going in to even have a chance to make it a success.
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TAiwan is pretty different from OZ. IT will take some getting used to. The taxes are not that hard, much easier then American taxes. And over-all should be much less then in Oz (or the USA).
good luck on your career progression. Hope it all works out for you.
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Labor and health insurance are very beneficial to you. Medical care here is top notch, cheap, quick. We have private insurance for extras like your own 24/7 nurse and stuff like that.
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Please factor in the cost of living is going to be a lot lower than Oz. With that salary, you’ll be saving a lot. Especially if you get corporate to pay housing.
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The tax thing seems complicated, but it is not. The bosses cover their back deducting the law requirement, but then at the end you get a very nice refund from the Tax Office. It is not as bad as US or Europe.
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There are much “worse” places to be than Taiwan, and I don’t mean tax-wise. Taiwan is really safe, it has decent nightlife, food. I mean, in terms of choosing posts abroad, there are places where you can’t go out without telling your bodyguards ahead of time, like the day before, where you cannot make friends with the locals, where you have to give up your favorite Internet sites or TV programs due to restrictions. So “taking one for the team”, career-wise, in Taiwan, is not as bad as it seems, compared to other options, as per my expat acquaintances who have been set in other parts of Asia. In the end, it depends on you and what you want.
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Even if they kept your salary the same you should end up with more in the bank by being in Taiwan. Its not Japan.
And on that note, its funny that one time i ran into a young guy who was an accountant for a major Japanese corporation. They doubled his 180,000 us dollar salary when they posted him to the USA for two years for the “trouble” and extra hardship. Apparently US taxes were more then Japanese taxes.
wow, id like to work for that sort of company.
And he wasnt even 30 years old.
He sure knew how to count his beans.
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YOu might wanna 'splain this superannuation thingy . Some of us dont have anything to annuate lah.
Thanks Tommy.
In Australia, the employer must contribute a minimum of 9% of your earned salary towards a registered superannuation fund.
If one would like to contribute more, they are allowed to.
What I meant was if Taiwan had similar regulations?
oh those, yeah we have them here in the usa. I forgot the name . But i dont think taiwan does . I may be wrong, but i dont think so. Thats why people like to work for the govt because of the nice retirement package. Most private enterprises dont have retirement.
YOU better save up yourself.
A lot of these in the usa nowadays have no matching employer contribution. My present employer for example does NOT contribute. Whereas one i worked for before matches yours up to 500/month.
1000AUD/mo should come at least close to covering your housing in Taipei area. Rent is tax deductable up to 125,000NT/yr IIRC. The standard deduction is 75,000. I actually need to check into this further since I think my rent will be high enough this year to qualify. IIRC you can also deduct labor and health insurance payments. It might not amount to a big refund but a little extra money is always nice.
And even with a housing payment at home you should be able to live like a king in Taiwan for 75,000 AUD. Aside from booze, toys (electronic and vehicular) and nice expensive hotels there isn’t a lot to spend your money on here. There is a lot of great outdoor stuff that is overlooked by most. Of course maybe I don’t think there is a lot to spend money on since I don’t have a lot (more like 25,000 AUD/yr).
That sounds like the laobao/labor insurance. So, yeah, you and your employer both contribute to it.
I think its what we have here in the USA called 401K . You put money in it and that money is not taxed until you take it out. The money collects interest as well. Many employers will match your contribution up to a certain annual limit.
One of my employers will match up to 500 dollars a month. So essentially thats a free 500 a month boost to your monthly income !! You invest 500 and they match with another 500. Thats 6000 USD a year of free money. And you dont pay tax on that 500 or the 500 the company gives you until you take that money out.
But the time you need that money your annual income may be a lot less and therefore you are taxed less on that 500 + 500 /month thusly gained.
budgeting-investing.ameriprise.c … 8261362389
I dont think Taiwan has anything like this? Could be wrong though.