No, it wouldn’t. It is also ok that Company deducts 20% from first few months and nothing from following months, or any.
I think so.
It is possible, but, Company is supposed to deduct tax from every employee, including locals.
As far as Company reports correctly, how they deduct seems not to be a matter. If Company doesn’t deduct and an employee doesn’t file a tax return to pay it, Company might need to compensate it to taxation office instead of the employee, though.
So, in short:
Company does as they please and everything gets sorted out in the next year during tax return.
Or not.
that is my recognition.
I have ARC and new in Taiwan, and have spent about a month in it so far. As a foreign professional I my work pays my salary and also gives me a renal allowance (they take out the apartment and pay the rent for me).
As work has given me the option to regularly visit other offices, I could quite easily be under the 183 days and stay in the 18% bracket. But how would that affect things like the housing and other allowances? Would I get taxed on that, or does that remain tax free? The tax documents seem to suggest I need to be a tax resident to get those perks.
Those perks aren’t supposed to be tax free regardless of resident status. Many Taiwanese do dodge taxes on company perks but as a foreigner you might come under additional scrutiny (I had to produce a letter for example stating that I wasn’t being paid any overseas income in addition to my Taiwanese income).
The advantage of being tax resident is that you can claim deductions on salary that complicate the math when trying to figure out if resident tax status is better or worse than flat 18% across the board.
As I understand it, if you do not meet the 183 day requirement, you are not considered a tax resident and are therefore not entitled to any tax deductions.
Why would they make you produce that? You were here on an ARC right? Did you go in paying your taxes and they didn’t trust you on that?
I was heading up a rep office for a foreign company. It looked like an expat posting even though I was hired locally.
(The real irony is that I haven’t lived in my country of birth since I was 16, but Taiwan kept wanting me to produce documents from there (certificate of no impediment, criminal background check etc.))
If you mean tax deductions for rent etc., you need to be a resident for tax purposes (i.e. pass the “183 days” test).
If you mean benefits from your employer in the form of a housing allowance etc., it comes down to the question of whether or not it’s part of your salary/wage (which it probably is) and shouldn’t have anything to do with whether or not you’re a resident for tax purposes.
Hello guys…i know a lot has been written about this topic but i need some help.
My company has been deducting me 18% for the first 6 month…i was always thinking that after those first 6 month it will be 0% for the following 6 month…but now they are telling me that they will probably have to still deduct me 6%.
I know the 18% x 6 months i have already prepaid is more than enough to cover my taxes for the year, so i think it is nonsense that they want to deduct me further 6% x 6 months,
Is it right if they do that?