When I leave Taiwan in April, do I need to have my tax receipt or other docs handy to show them I paid my taxes? (I worked under a one year ARC).
Thanks!
I haven’t had to recently. But then I had a reentry permit.
I remember you used to have to get tax clearance statement before going abroad, but not in the last five years!
Kenneth
The requirement for an exit permit was eliminated in the early 1990’s.
One of the major criteria for getting an exit permit was to produce evidence of having paid taxes.
Hence, to my knowledge, this requirement is no longer in existence.
I’ve never heard of anyone being stopped at the airport.
However, overstays are a separate consideration. I remember when I overstayed a visa last last year the FA police would only give me an exit stamp after I had paid the overstay fine AND filed my outstanding taxes (one-year in arrears at that point). They can make life hard for you if they put their minds to it.
I am the position where I have been told I owe over half a year of “back-taxes”. Furthermore, I have been threatened with the fact that I cannot leave Taiwan without a “tax receipt”. Following this thread, I can see the my boss is clearly lying to me about needing a tax receipt to leave. I have no wish to break any laws if I do indeed owe tax. Any suggestions for dealing with this “sudden” tax?
Tell your boss that you file your own taxes. He or she should have given you a tax statement in January to show your total wages earned and how much (if any) was deducted for taxes. Take this statement to the tax office and fill out a tax form. The people at the counter are usually very helpful, so don’t be afraid to ask questions. (At least in Taipei–I don’t know about other areas.) If you were here for more than 183 days last year you will be taxed at the local rate. Otherwise it’s 20%. IIRC, if you plan on leaving the country for good before the end of this year, you technically should file this year’s taxes before you leave–especially if the boss has been deducting taxes, as you might be due a refund.
Excellent advice.
Some other advice would be to not work for such an obvious lyin’ crook.
Thank you for the earlier advice. A continuation of the events. I talked with my boss about my salary and taxes. Apparently the accountant is “angry” with me for asking questions. They are deducting tax and that is that. Is there somewhere I can find some legal advice, or any suggestions to conclude and diffuse this sitaution. (as a side note, my experience in Asia has taught me to always be polite and smile, so there has certainly been no shouting or such).
I have had this happen to me in the past when I was green in Taiwan. My boss told me he was deducting taxes, but I hadn’t even yet got official work authorization from the MOEA or a corresponding ARC. In fact, later I found out that he was pocketing the money. If your employer is truly withholding money to pay to the tax authorities, you should receive a half-sheet form called a “Withholding & Non-Withholding Tax Statement for the Republic of China”. Your employer MUST supply you with this.
Hoe long have you worked at your current job?
Also important is, do you have an ARC? and do you have a contract?
Brian
Tell them you think that the language barrier must be creating some confusion and that you’d like to see documentation of all taxes paid and withheld to clear things up. It’s possible that they paid taxes on your behalf already and that’s why they’re collecting back taxes now–although it seems like you would have had to sign the tax form even if your employer filed for you.
What percent are they deducting for taxes? If you were here for >183 days last year, it should be at the local tax rate–probably no more than 6%-10%.
I understand your urge to be polite, but there’s no reason to submit to the whims of surly accountants. If you have to, tell the boss that you thought of the accountant as your friend and that you are shocked by the accountant’s anger at you. Act as if you’re hurt. After all, you are new to the system and can’t be expected to know everything. But leave no doubt that you will receive copies of all relevant withholding information.