Income Tax working as freelancer

Hi All,

I browsed the forums yesterday searching for an answer:
I am a Dutchie who’s married to a Taiwanese, am here on ‘marriage ARC’. I am working freelance online for companies not related to Taiwan.
Every once in a while some money comes into my Taiwanese bank-account.
I was wondering if I had to pay any taxes over this money so I decided to call the tax-administration here in Kaohsiung.
(07-725-6600 ext. 7021)
A wonderfully kind lady picked up the phone and she had good English skills, telling me that if your yearly income doesn’t exceed 1 million TWD then you don’t have to file taxes. If you’re earning more than 1 million, contact them.
She mentioned income from freelancing activities falls under ‘Overseas Income’. But she also mentioned that financial gifts for example will also be considered part of that 1 million ‘rule’. So be wary what you have people transfer to your account, should your salary come close to that amount.

Thought I’d share this with you all, perhaps it will come in handy one day.
PS. getting started working online is easier than you think :wink:

Yep, it’s been that way for a while. When the money comes in your bank should call you to ask what it is. Say it is gao fei.

Basically this is a godsend for freelancers as trying to file taxes when you have a myriad amount of deductions is a daunting task.

This seems a bit different from what the income tax people just told my wife.

They said that you only get 180,000 tax free and you have to pay on anything you make over that. You are allowed to deduct 30% for expenses but you still have to pay on the rest.

When the bank calls me to ask where the money comes from, I have just been telling them that it’s from my work online. Does the yearly income mean only income that you made online or all the money you’ve earned over the year?

I’m not sure if she asked about it being overseas income though. Is overseas income simply money that was paid to me by people who are not in Taiwan?

Edit:

My wife checked again and it turns out you’re right. You can earn up to a millon without having to pay tax. The tax lady didn’t really know what she was talking about the first time and once my wife mentioned how the Kaoshiung office said it was a million and not 180,000, the tax lady checked something else and agreed that this was the way it was supposed to be.

Thanks for the post because you just saved us a lot of money.

[quote=“Gilgamesh”]My wife checked again and it turns out you’re right. You can earn up to a millon without having to pay tax. The tax lady didn’t really know what she was talking about the first time and once my wife mentioned how the Kaoshiung (Gaoxiong) office said it was a million and not 180,000, the tax lady checked something else and agreed that this was the way it was supposed to be.
[/quote]

This sounds very useful, do you have any reference or online info about this that I can check out?

[quote=“Gilgamesh”]This seems a bit different from what the income tax people just told my wife.

They said that you only get 180,000 tax free and you have to pay on anything you make over that. You are allowed to deduct 30% for expenses but you still have to pay on the rest.

When the bank calls me to ask where the money comes from, I have just been telling them that it’s from my work online. Does the yearly income mean only income that you made online or all the money you’ve earned over the year?

I’m not sure if she asked about it being overseas income though. Is overseas income simply money that was paid to me by people who are not in Taiwan?

Edit:

My wife checked again and it turns out you’re right. You can earn up to a millon without having to pay tax. The tax lady didn’t really know what she was talking about the first time and once my wife mentioned how the Kaoshiung (Gaoxiong) office said it was a million and not 180,000, the tax lady checked something else and agreed that this was the way it was supposed to be.

Thanks for the post because you just saved us a lot of money.[/quote]

but does that only apply if you are on a ARC or JVRC?

This sounds very useful.
Could someone please give me a rundown of the different possibilities for registering as a freelance (or is there a good online resource that details the different options)?

Thanks.

Following.

You have to respect a country that has an enlightened rule like that. No better way to stimulate small businesses.

Do you have to register anywhere to work legally as a freelance?

I’m asking because if I work as a freelance for a company in the EU, they will ask me to issue a formal invoice with my taiwanese tax number and all that, and I don’t have any, as far as I know.

Following… Edit. I already followed this thread. The summer heat makes me stupid, I am making mistakes all the time.

[quote=“Blaquesmith”]Do you have to register anywhere to work legally as a freelance?

I’m asking because if I work as a freelance for a company in the EU, they will ask me to issue a formal invoice with my taiwanese tax number and all that, and I don’t have any, as far as I know.[/quote]

I am wondering the same. Did you find an answer for that?

[quote=“skingomez”][quote=“Blaquesmith”]Do you have to register anywhere to work legally as a freelance?

I’m asking because if I work as a freelance for a company in the EU, they will ask me to issue a formal invoice with my taiwanese tax number and all that, and I don’t have any, as far as I know.[/quote]

I am wondering the same. Did you find an answer for that?[/quote]

Me too. Any update ?

[quote=“symbion”][quote=“skingomez”][quote=“Blaquesmith”]Do you have to register anywhere to work legally as a freelance?

I’m asking because if I work as a freelance for a company in the EU, they will ask me to issue a formal invoice with my taiwanese tax number and all that, and I don’t have any, as far as I know.[/quote]

I am wondering the same. Did you find an answer for that?[/quote]

Me too. Any update ?[/quote]
Same here. Plus I have an ARC right now but not in a couple of weeks, and I was wondering if that’s even legal in my case…