If I am a US citizen teaching in Taiwan do I have to pay US taxes while being in Taiwan? Thus being double taxed by US and Taiwan.
After some research it appears that you pay 20% tax in taiwan for the first half of the year and then its bracketed for the 2nd half? Is this correct?
Thanks
If you earn under a certain amount you can claim tax exemption in the US. The figure ranges from US$70k to US$83k, so you should be fine as an English teacher.
Yes, you will have to pay 20% for your first 182 days in Taiwan, then either 6% or 13% for the rest of the year. You should get a refund at the end of the year.
Ahhh… Silly Taiwan laws, designed to keep foreigners away.
You are not a foreigner living in Taiwan then?
You are not a foreigner living in Taiwan then?[/quote]
Not for long. And you see, I foolishly came here without reading up on tax laws. Had I known I’d be charged 20% tax for my first 182 days, I probably wouldn’t have come in the first place.
Interesting, 20% is not high by comparison with many countries. Anyway my solution as follows: -
Don’t get an ARC
Work for whoever you like
Leave every 30 days (or more often if you can afford it)
Pay 0 tax because you are not on any official records.
=-)
Good luck
But many countries offer higher salaries; 20% of NT$60k is pretty substantial.