Hi, one of my freelance customers has requested I fill out a Professional Service Receipt (勞務報酬單).
(Edit olm: removed picture at request of poster)
I’m not a registered company so cannot give out 發票 fapiao receipts. I’ve never had to issue one of these Professional Service Receipts before, even after working with many large companies, so I’d like to check a few things.
As a foreigner without a registered business (but with open work rights through marriage), is it all cool for me to fill this form out?
For my Taiwan company, I have to report the income of all freelancers/contractors i work with in Taiwan at the end of the year so it automatically gets calculated on their individual tax returns for next year. My accountant only asks me for their ARC/citizen ID number and some basic stuff like address. Maybe there’s some withholding rules for foreigners, I’m not sure. If they don’t pay taxes the next year then I assume the company is liable for the taxes so that might be why they withhold for foreigners.
Seems they’re asking for way too much info here. Maybe just write them an invoice with your ARC number, name and address and see if they’ll accept it.
it is a proof of their expense to report tax office, and a proof of your income.
the category, you could ask to them, but maybe is 9b if what you do is a translation or like that, or 50 if not.
if the category is 50 and it is less than 86k, tax doesnt need to be withheld, if you can be treated as a resident. it is january, so they may want to treat you as a non resident. in that case, 6% for less than 39.6k, or 18% for more that that.
added
now i saw the posted item, and it says tax should be withheld 20% regardless of the category. the category is 9b?
The note after “No” says the withholding rate is 20% unless tax law stipulates otherwise. That’s the standard withholding rate for 執行業務 (9A) aka income from professional practice, which I would say is the most likely category for any freelance income other than 稿費 (9B).
It should be easy to declare it as 薪資 (50) if the two parties are clearly in an employment relationship.