I’m both a Taiwanese Citizen (non-tax resident) and New Zealand Citizen (tax-resident) looking to work remotely for a NZ company in Taiwan for an extended period of time (less than 183 days).
I want to ask - if I stay less than 183 day, does the NZ company have to be involved to declare withholding tax? Or can I personally declare to the Taiwanese Tax Office the withholding tax.
My NZ company will currently not allow me to work in Taiwan if it is the withholding agent. But if I stay less than 183 days, and greater than 90 days (according to this website), am I the withholding agent and it is my personal duty to declare to the tax office?
Furthermore, does Household Registration matter at all? According this link, Taxation on Remote Work – 啓源會計師事務所有限公司 Kaizen CPA Firm., it seems like even though I’m a Non-Taiwan Tax Resident, I can only stay less than 31 days.
I welcome all help if you have knowledge about this.
Just to summarise, My New Zealand employer has expressed concerns about becoming a withholding agent in Taiwan and thus will not allow me to work remotely in Taiwan. Under these circumstances, am I personally able to declare and fulfill any withholding tax obligations with the Taiwanese tax authorities, or is it strictly my employer’s responsibility to act as the withholding agent? Given that I work less than 183 days.
No. The company is not operating in Taiwan. Your issue will be what nationality you use to live in Taiwan. You will not have access to NHI as a tourist or a recent returnee to Taiwan as a citizen if you have been removed from NHI by living abroad.
I assume the salary will be paid into your NZ bank account?
Thank you for answering my question. I can go back in Taiwan in either nationality? Noting that if I go in with NZ visa, then I have 90 days exempt and so as Comfy123 above stated, do a 3 month waiver and return back, totaling less than 183 days in Taiwan.
However, the contention point is that my company will not allow me to work remotely in Taiwan if it is legally required to establish an entity to pay withholding tax. So far, the link that I’ve found that might be closest to my situation:
Thank you for answering my concern. I believe I do have HHR. I’ve talked to the economic office in NZ and they have confirmed that I can enter via NZ passport, do 3 months, come out and then return.
However, the key contention is about whether my NZ company will need to establish an entity in Taiwan and be paying tax. Just to emphasize, my work will not involve selling any products or services to Taiwanese customers, rather I will work remotely at my parent’s home and do work specifically for NZ company that has no relevance to Taiwan.
It seems like they have to be a withholding agent based on below phrase:
No. They should not do that at all. If they do that you will require a work permit. Nor do they need to.
I guess you have a property in New Zealand or a family house? That can counted as a permanent place of abode. In that case you can always count yourself a tax resident of New Zealand and just pay taxes there (should you not argue otherwise).
In any case… just have your employer continue deducting the same tax and then you can claim it back or pay more when taxes are filed. Your employer can just pretend like they think you’re still in New Zealand.
That’s for if you work for a local company in Tawan.
@Mataiou and others work remotely in Taiwan and there companies don’t withhold taxes in Taiwan AFAIK
Yes ROC citizens can enter Taiwan on a foreign passport. Also you need to leave but that does not mean going back to NZ. You can take a cheap flight to Manila and return. read this thread.
It does not matter what nationality you use your NZ company does not need to be involved. Simply have them pay your salary into your NZ bank account as usual.
If you are here as a foreigner for less than 183 days you will not have a Taiwan tax obligation. A NZ company cannot pay taxes in Taiwan.
Your taxes are your personal taxes and you are exempt if not staying 183 days a year. This is how many remote people on visa free entry stay in Taiwan.
No. Why would they? Are they going to open a company in Taiwan?
You are overthinking everything. Your working remotely does not mean the NZ company has to open a company in Taiwan to pay you an income in NZ.
As a non resident of Taiwan you do not need to file taxes in Taiwan. You just pay your NZ taxes as usual. In fact nothing changes for your NZ employer. They just pay your income into your NZ account as you are still NZ tax resident. There is nothing the company needs to do except pay you as normal.
He has his salary paid to his Taiwan account and declares that to the tax office. Also he is a resident here on an ARC but the OP can use his NZ citizenship as a non resident foreigner and pay no taxes here.
Thank you Satellite TV for answering my queries and relieving my concern. My only problem now is that I can’t be presenting this thread to the Tax Accountants in my NZ company cause they’ll not believe whatever is said on this thread. Is there any official information that I can direct them to that says this formally?
Thank you comfy123 (and Satellite) for answering my query. Is there anywhere online (maybe an official government website) that can point this out. The NZ company tax accountants are likely going to struggle to believe the words from a thread
Just look in your Taiwan passport and see if you have ID number. If you were born in Taiwan then yes you have had HHR and you have ID number. Not sure your age but do be advised, if you enter on ROC passport you can be drafted for military service if you are under 36 years of age.
Come here on Kiwi passport, stay within the visa exemption period, do a visa run (I hate this, but whatever, not my concern), come back, keep working, get paid into your non-TW bank account. You won’t have NHI here ofc since you will be a foreigner here for short stay period, but no tax will be levied. However, given that you will stay most likely for more than 90 days in the calendar year, TW tax bureau might ask you to file as an individual some tax returns here and pay the non-resident rate, but the company can’t do that since it is not a TW corporate. My HK company does jackshit here, they just provide me all the payslips and the “consolidate salary report” which I submit to the tax bureau to validate what I reported to them and assess my taxes.
As always, if you want authoritative opinions, here we are not legally entitled to give you tax consultancy, talk to a tax professional or speak directly (worst decision though) to the tax bureau. And if your employer keeps moaning, tough luck, try harder. We did all we could and more to help you, but that’s it. We are just strange weirdos on a flob
Why do NZ tax accountants need to know anything more than your employer pays your salary into your NZ bank account as normal. There is nothing for them to understand about Taiwan. Tell them to ask the NZ TECO office if they do not know lol
The NZ company does not pay your salary to Taiwan and even if they did, they do not have any office here so they cannot deduct or pay income taxes in Taiwan. Sometimes accountants are too obtuse for their own good. They want to ask for proof of a negative that does not exist.
NZ accountants just stick to NZ laws. Anything outside of NZ is not their concern. I have clients from outide of Taiwan. Some of them pay to my accounts outside of Taiwan. They do not get involved in my Taiwan tax reporting as it is none of their concern.
