I have decided to move on from my job of over 18 months. I signed a new 1 year contract in January and will be leaving after 4 months. My company had only been taking out 5% taxes during this time. Before they will sign my Contract Termination Agreement they say I must pay 13% taxes for the 4 months this year because I am quitting before the 183 day mark
In the 6 years I have been here I have never came across something like this. Is it ok for them to not sign the agreement once I give a written notice of resignation? Has anyone ever had to pay taxes in the manner? Any advice would be very much appreciated.
[quote=“lukeduke”]I have decided to move on from my job of over 18 months. I signed a new 1 year contract in January and will be leaving after 4 months. My company had only been taking out 5% taxes during this time. Before they will sign my Contract Termination Agreement they say I must pay 13% taxes for the 4 months this year because I am quitting before the 183 day mark
In the 6 years I have been here I have never came across something like this. Is it ok for them to not sign the agreement once I give a written notice of resignation? Has anyone ever had to pay taxes in the manner? Any advice would be very much appreciated.[/quote]
Not unfair, because they are on the hook for the money if you end up staying less then 183 days of 2014 in Taiwan.
Yes, they should have been deducted 18% the whole time but they did you a favor and only deducted 5%. But now that you are leaving they need to cover their ass in case you leave Taiwan.
I am not leaving Taiwan. After looking through it further, I do understand it a bit. However, they are now asking me to pay interest if there is any. Thoughts?
The problem is that there is no guarantee once you have left the company if you will leave Taiwan.
Why on Earth would there be interest?
The important thing is that the amount deducted from your paychecks matches with how much they reportedly pay to the tax office. This was not the case one year at our school.