After I have stay longer than 183 Days in TW then the Tax will go down from 18 %. Right ??
Greetings
Ralf
[quote=âralf1970â]After I have stay longer than 183 Days in TW then the Tax will go down from 18 %. Right ??
Greetings
Ralf[/quote]
Ralf, from what I am understanding after working in here for over 3 years and having paid taxes for two already⌠my answer is yes and no.
In a way âyesâ because every year for first 6 months companies can deduct 18%. Then second part of the year it goes down to the usual % (5 or 6 I think).
But ânoâ, because in the end you will need to pay only the 5 or 6 % per whole year, and the money that was deducted extra (difference between 18 and 5-6%) will be returned (so for this year, it would be returned around July 2014).
Also ânoâ, because some companies (like mine) donât deduct tax from my salary at all, so I just have to pay normal 5-6% from the whole year when the time comes (May 2014 for this year).
[quote=âralf1970â]After I have stay longer than 183 Days in TW then the Tax will go down from 18 %. Right ??
Greetings
Ralf[/quote]
It should (if the school is deducting correctly) but the 183 day rule restarts each tax year so expect 18% taken out of your January paycheck again.
My question is so I need to pay taxes after 183 days. What if I am working for a US based company and I am not making any income in Taiwan? Does that mean my US income still gets taxed 20%?
My line of work is more commission based, so for any tax experts out there, is there away I could classify this commission in order to make it tax-exempt? I have heard that titling commission instead to business development will make it tax-exempt.
Hi,
I hope you can help and provide me some orientation with this question I have:
I am working for a Taiwanese company that has offices in Europe as well. This year I worked at one of their European offices (I went to Europe during 8 months) and during this period I received my salary as if I were in Taiwan, when I came back and they told me that I will have to pay the 18% of taxes because of the 183 days rule, which gives a crazy high amount of money. However I will be leaving Taiwan for good in two months.
-Is there any way to avoid or negotiate to reduce this 18% tax? Last year I made my tax declaration, and stayed over 183 days⌠does this help?
-What is the procedure before or after I leave to pay these taxes? Will I have to pay them before leaving Taiwan, or with the e-filling next may 2015?
-What are the risks of not paying this? (I will not come back to Taiwan)
-Any advice??
Thanks!
the risk is that your company will have to pay the tax.
You can go to the tax office with a plane ticket and file taxes early (my understanding at least).
You may not wish to pursue this as the alternative is to be considered a European resident during the time in which case youâd pay European tax rates on the income which may well end up being higher. Technically you should not owe any tax in Taiwan on income for work performed abroad, but since you were paid as if it was performed locally the only way out would be to prove youâd been resident and paid taxes on the income already in a foreign country. Your company should have already been withholding 18% of your income towards the tax. If not, they would be on the hook for the difference if you leave without filing a return and paying it yourself.
would like to know if on 31st Dec you are not in Taiwan , does your tax exemption would be calculated based on days stay in taiwan ?
It doesnât matter if you are in Taiwan on Dec 31 or not. It just matters how many days you were present in Taiwan total in one calendar year.
I have a question about this 183 day thing: I started working at a new school Feb 2 and they are deducting the 18% tax per month and told me the tax rate resets on the 1st of January every year. I spoke with my accountant and she told me that as I have an APRC through my marriage and have been in Taiwan for 15 years (with the exception of 2~3 weeks of vacation every year) I shouldnât be paying the 18% or having my taxes deducted regularly. So who is right? Does the tax rate reset every Jan 1 for 183 days? Or am I getting screwed over? If it matters, my last vacation was in August of last year.
The calendar year resets on Jan 1. From Feb 2, day 183 should be in August.
Afaik your APRC counts for nothing in this fight, but you can try. 
Does this calendar reset rule apply the same way in regards to the 5 years residency for naturalisation/APRC application? Do the 183 days minimum per year all need to be in the same calendar year?
The 183 day rule is for tax purposes.
A calendar year starts on Jan 1 rather than CNY or any other day, unless otherwise specified.
Same where I work. APRC/JFRV or not, they will not change. You can try, but its a stone faced no where I work.
So apart from the calendar year rule for tax, does the system work the same in counting days? Eg arriving Taiwan is not counted as a day unless you leave Taiwan. Spending a whole day in Taiwan is counted as one day. And the day you leave Taiwan is counted as one day.
A duration of stay starts on the day after arrival, and the tax people get their tally of days stayed in a year from the immigration people (youâre supposed to write your dates on the form, but they get the information automatically anyway).
My company deducted 20% tax from my salary in the first month I worked there but stopped after I showed them that my ARC was obtained through marriage and was still valid for a couple of years. (They should know that already since they had requested copies of my ARC when I started working, and they made no application for a working permit for me, but it seems this information was totally unnoticed to them 
)
Now itâs time to get the annual bonus and they deducted again 20% for tax purposes. I tried to talk to them again, but this time they said there was no other way, and that they were just following the government rules.
Now, my questions:
- If they are not deducting taxes monthly, shouldnât they follow the same for the bonus?
- If they are really just following the tax law for the bonus, doesnât it mean that they arenât following for the salary?
- Are bonus and salaries subjected to different rules?
If your (expected) net taxable income is between 1,210,001 - 2,420,000NTD, 20% is the correct rate.
If I understand the rules correctly, bonus and salaries are subjected to the same rule. Companies are expected to deduct tax with a proper rate from each employeeâs salary, but any differences would be corrected when they file income tax return at taxation offices, so practically companies can deduct by any rates. Companyâs obligation is to report total amount of income and deduction of each employee correctly to taxation office by the end of January.
No, my net income in this job would be less than that. I guess it should be a lower rate, if any.
Company is deducting from bonus, but not from salary. Seems they are using two different rules. Wouldnât it give them some trouble?
No matter if the employee is a JFRV or APRC holder?
Does it mean that is also possible for a company to not deduct taxes during the whole year and report it as so in January, just as they do with Taiwanese employees?