I would like to inquire about deducting 18% tax rate in Taiwan. Would it be deducted for all month of a working year? or only for 183 days (6-month deduction)?
The case is:
I have been working since September 2017. My employer started the 18% tax for Jan-2018-payment. It is now July, but I am still deducted the 18% tax.
They said the 18% tax should be deducted for 12 months in 2018.
[I work in Taiwan for only 2 years]
Actually, the company told me that we can apply for the refund in May next year (2019)
Is there anyone who has experienced this case (getting the refund)? will they return the 13% as the tax is initially 6%?
For the first 183 days, yes, I believe everyone is under the 18% rule. After that, it might depend on your income.
If you have a pretty high salary, the company you work for might continue deducting the 18% knowing that amount (or more) would be the amount you are liable for. If you fall into a higher bracket of the progressive tax system here, they might continue with the 18% deduction…and then evaluate at the end of the year if you owe, or get a refund.
Or…this company could just be screwy. Good luck!
Despite being in Taiwan on and off for the last 7 years, my company has a blanket policy for all foreigners (and there are many because migrant workers in our factories) that the first six months of the year 18% is deducted. I know it’s not legally required for them to do so, but it’s their policy and there is no changing that.
However, my question is whether the 18% taken from us for half the year, and held for a whole year gains interest while sitting in the tax office’s account? Maybe it’s like the money that sits in our pension accounts where the government must pay dividends equal to the interest of a government bond over the same period of time.