I have the regular tax statement from my employer but it says zero net withholding tax. I find it hard to imagine that I don’t have to pay any tax. Are they going to come and break down my doors?
How should I deal with this?
You should pay your taxes at some point. Maybe your employer doesn’t wish to contribute taxes for you.
You are responsible for going to the tax office and the people there will help you compute how much tax you should pay.
It used to be that for foreigners, the company would deduct our taxes first. In this way, we usually get a refund.
Now, most companies don’t bother to deduct our tax.
Deadline: May 31, 2004
Okay.
Your employer does not have the option whether or not they wish to “contribute” your taxes. Your employer is obligated under ROC law to withhold taxes for you. Period. The only exception I’m aware of is for “gao fei” (translation and writing payments) under NT$10,000 per month or something like that – I have one client which doesn’t withhold taxes under those circumstances, and it’s a big enough, responsible enough company that they are likely right.
If you have been in the ROC 183 days this calendar year (obviously after July 1!) OR if you made your 183 days LAST year, you are considered a resident, and your withholding should be done at the same rate as that used for ROC citizens.
If you have not yet made 183 days, then your employer should withhold 20%.
In any event – EVEN IF YOUR STUPID EMPLOYER DOES NOT WITHHOLD – you are responsible for taxes on the amount of money you earned according to the statement of withholding. However, you could probably get your boss into some considerable trouble if you could find the right office to report him/her to. There is a hefty fine associated with “failure” to withhold.
Give me a shout if you want to turn in your employer. If my current “employer” continues to attempt to dick me around, I might be up for a similar trip myself. 
Not a threat, just a statement of fact. I know which one of us has more to lose…