I have some questions about filing income tax return as a GC holder in Taiwan. I tried searching the forum but didn’t find the answers I need. (I could have missed them.)
My understanding is that if a GC (or ARC) holder stays in Taiwan for less than 90 days in a calendar year then there’s no need to file. If it’s between 91-182 days then tax filing is required for Taiwan-sourced income, including overseas income earned while in Taiwan. Is this correct?
If you stay in Taiwan for 183+ days in a calendar year, you need to file taxes that include your worldwide income, active or passive (such as investment dividends, capital gains, rental income.) Is this understanding correct? This basically doubles the amount of work of tax filing if your home country is the US - in the US (because US taxes you no matter where you are) and in Taiwan.
Is the income here household income or individual’s income? If one of the spouses lives in Taiwan and the other doesn’t, only income of the one living in Taiwan will be taxed? Or all household income?
What’s the best option for filing taxes for US expats? Have a CPA do the US taxes, then send the same files to a tax accountant in Taiwan for Taiwan taxes (since the US tax deadline is earlier than the Taiwan deadline)?
Is there a way to avoid US and Taiwan double-taxation? What’s the right way of doing it? Any tax account in Taiwan you’d recommend who is familiar with filing taxes for US expats?
Quite a few questions. Any pointer would be appreciated.
My main income is likely some US 1099 income. Investment income is also a possible such as dividends, capital gains if I sell stocks, even rental income though losing money right now. Will they need to see all the 1099-DIV, 1099-INT statements, etc.?
If you give them your 1040, they can figure it out
If you are doing late filing in October, you can give them a heads up and they can wait til your 1040 is ready
For your questions about TW taxes, since you have lots of questions it’s probably best to walk into the tax bureau at Zhonghua road and ask. They’re not busy this time of the year.
Taiwan Salary Reporting Requirement: If you are employed by a Taiwan-based company, including Taiwan schools, you are required to report all salary paid by your Taiwan employer, regardless of how many days you stay in Taiwan during the year.
Worldwide Income and Taiwan Taxation: If you stay in Taiwan for 183+ days within a calendar year, you are considered a Taiwan tax resident. As a tax resident, you are required to report and file taxes on your worldwide income, both active and passive (e.g., investment dividends, capital gains, rental income). There is an exemption for foreign passive income up to TWD 6.7 million.
Avoiding US and Taiwan Double Taxation: Since there is no tax treaty between the US and Taiwan, US expats working in Taiwan may face double taxation. To avoid this, it is recommended to avoid being employed by a US company while working in Taiwan. Instead, request to be employed by the Taiwan subsidiary of the US company. This can help prevent double taxation, as you would pay taxes in Taiwan and avoid US tax liability on that income.