I have an ARC for my teaching job. On the side I’d like to do some freelance writing work. But the publisher for this freelance job wants to tax me 20%. My questions are:
Here is your situation as you have stated it:
Here’s my analysis, based on my experience in overviewing such matters:
a) In these days of the internet, do you need to sit in an office with a supervisor staring over your shoulder to do “freelance writing”? I would guess not. You can do it at your place of residence, or perhaps in an internet cafe.
b) Given that you have legal residency now with your employment based ARC, I would note that the Employment Services Act has never been interpreted to say that one needs a work permit for freelance writing, or freelance editing, or freelance translating, etc. on the side.
c) As discussed in other threads, the matter of withholding deductions is independent of your visa status, or work permit status. At the present time it is January, 2004. There is no way that you will have already been in Taiwan for “183 days” already in 2004, however if you met that “183 or more days” physical presence" rule for 2003, you can carry that “resident” status over to 2004 automatically.
d) There is no need to prove any so called “legal work status” to the tax authorities.
Note for © above: THESE ARE THE ANNOUNCED REGULATIONS OF THE NATIONAL TAX ADMINISTRATION!
Note for (d) above: THE [i]INCOME TAX LAW[/i] OF THE ROC DOES NOT MAKE ANY STATEMENTS OR STIPULATIONS ABOUT “WORK PERMITS”!
A school in Taoyuan city was raided last week and one of the foreign teachers has an ARC, but not for that school. He must be in court next week and they told him that its illegal to work at more than school. You are only allowed to work at the address on your ARC. So if you work at other schools, be careful and they must pay you cash. The tax is their problem, not yours. The only problem I have is that my home address is on my ARC, so I wonder what will happen if they catch me one day.