[quote=“Nenita”][quote=“ekphrastic”]Hello all- This will be my first posting, so let me first thank you all for the wealth of knowledge I’ve found on these boards. Keep it up, its much more structured support than I’ve ever found here in Thailand.
In regards to the incredible 10-18% tax 183 day rule, I’ve been researching for when the best time of arrival would be. The site on tealit.com seems to disagree with the notion that one should arrive before July 2 (which is the single day that our taxes will be based upon. Ridiculous if you ask me, but I’m no bureaucrat- I studied fine art and punk rock in college.), because your taxes would continually fluctuate between 18% and 10% as long as you stay in Taiwan and sign contracts consecutively (this is because your 183 day status reflects the amount of time remaining on your ARC- see section labeled “Interpretation” on the attached tealit website.).
I’ve never been particularly good with taxation in almost any regard, but this one seems particularly confusing to understand in a straight-forward way. The bottom line on tealit.com says that (short of arriving on Jan. 1st) one should arrive after July 2nd in order to avoid a massive tangle of fluctuating taxation. Does everyone generally agree with this notion?
Here’s the link again:
tealit.com/article_categorie … ar-workers
Thanks,
EKP[/quote]
Thanks a lot for the link, it really helps!
I arrived here on September and sign 1 yr contract with a company, so it means I have to pay 18% tax for 3 months and another 9 months of next year calendar I have to pay 6%. But I wonder if those 18% of 3 months I paid can be able to refund or not. If yes, I will get the difference between the regular tax rate back (12%),right?
What do I have to do if I want to refund these differences? Company told me I cannot get this refund, is this true?[/quote]
Here in Taiwan, the 183 day rule applies to a given calendar year, just like it does in the US. So if you arrive in Sept., your 183 days starts Jan.1st. You won’t see a tax break until the middle of the year. Many countries operate this same way.
My company charged me 18% in 2006 for 6 months and then 6% for the rest of the year. After that year, I paid only 6% all year round until 2009. Then they said the law has changed and I’d have to go back to paying 18% then 6% every year, half and half. Residence status in Taiwan wouldn’t lower my taxes any more.
But for anyone at my company on a spouse visa/APRC, they only were required to pay 6% all year round. Now I’ve got an APRC and am being told the law has changed again and I’ll still have to pay 18% then 6% every year, regardless of visa status.
I’m wondering if they mean the company policy has changed, not the law? Is this just an HR policy and not the law in Taiwan? I’ve run into plenty of people doing various jobs around Taiwan and they all have a different story on what their company requires for taxes each year.
Oddly enough, I’m married to a Taiwanese girl and we file taxes jointly, so I don’t see why I shouldn’t just pay to my company that same amount that she pays to her company. At the end of the year, we have to assess our taxes based on our marriage status, filing jointly. Why is my company telling me a different story?
I also have an open work permit. Can anyone tell me if that would change the status of what I should be paying for taxes? I know at the end of the year it will all balance out in the end. I’d just like to find the source of this information (is my school full of it?) and then find which company has the best policy, if there is no rule for taxes in Taiwan.