My company gives me a $500 gym allowance. I just show them the receipt. If it’s over $500 they will still only refund me $500. In the past I’ve had a company give me a $500 mobile phone allowance, although I’m not sure if that was tax deductible because we didn’t need to show them a receipt, probably was though somehow.
Most companies I’ve worked for here have given me a $2400 food allowance as part of my salary, e.g. if they told me my salary is 80k, the salary I actually got was 77.6k, and the rest was food allowance. I also give my wife who is an employee of my small business a $2400 food allowance, although I’m not aware of any other allowances I could be giving her.
I’m curious if anyone knows the maximum tax-free/tax deductible housing allowance amount in Taiwan. When I was doing my US taxes, I noticed that housing allowances can get close to 100k USD/yr, depending on the COL of that city (though it can’t exceed your actual income). I remember seeing a post from someone who was looking for housing in the 80k+/month range in Taipei (because that was their housing stipend). Can an employer really give 80k/month in tax-free housing as part of a package?? What is the max housing stipend amount?
You might want to look here and see if you are eligible for any of these benefits. As I recall, eligiblity can be a bit tricky. You might to consult a CPA before you set something up with your employer.
I of course hope that your salary negotions go smoothly because you are a valued and indispensable employee and your employer is reasonable and understands that.
But the more common scenario in Taiwan is that anything but insultingly small raises are very difficult to negotiate. One scommon strategy is to go into the negotiations with a number that you think is fair and reasonable (considering topping this up for bargaining room). After your employer declines to raise you salary accordingly, start looking for a new job. Once you have a firm written offer in hand, go back to your current employer and ask for 10-20% more than what you asked for in the first place.
In many cases, this kind of brinksmanship is the only way to get a decent raise.
Didn’t know that existed. Looks promising. Any idea how I can find what the tax preferences actually are? That article only discusses who qualifies.
The nature of the tax incentives are in the link. Basically, the employer pays things like tuition for the employee and can claim it as a business expense. I believe this means that the payment is not counted as part of the foreigners income. Other claimable expenses include:
home leave vacation pay
home moving expenses
home repairs (remodeling?)
See §3. These arrangement have to be in your employment agreement and there are other qualifications that have to be met.