I have an APRC and an open work permit. Currently I work as a teacher at a buxiban making a regular hourly salary with normal tax deductions. However, I’ve also started teaching a student once per week making 1000ntd for a total of ~4k ntd per month or 50k ntd per year. I’d like to keep everything legal and by the book. How do I go about claiming this income on my taxes? Am I taxed the normal rate that I’m usually taxed at my buxiban job (~5%)? Do I need to provide receipts or can I just tell the tax office “50k” and pay the missing tax? How would this change after I’ve added more students and am making 100k, 200k, 300k per year on top of my normal salary or replacing it entirely?
This is definitely not legal advice, but in a world where morals dictated our actions, you might want to calculate what your taxes would be and pay the greater of that amount or 10% of your earnings to a charity of your choice.
Private tutoring generally means self-employment, making the income from it income from professional practice/執行業務所得.
Depending on the details it may also be 稿費, which makes it tax-free up to a certain amount.
For the range you’re currently talking about, I wouldn’t worry about it too much and just declare it as tutoring income on your next tax return. I did the same last year with a similarly small amount (ca. 40k). I just entered “private tutoring” or something in the tax software, but if you file in person at the tax office I’m sure they’d know what to do.
I don’t think they asked me for any additional documentation, but I might have included a printout of the bank transfer receipt alongside the other stuff I was submitting (the fact that it had been paid via bank transfer as a lump sum possibly contributed to me declaring it rather than following @Mithrandir’s suggestion or using it to stimulate myself in lieu of the stimulus vouchers I didn’t get despite paying taxes).
The tax rate would depend on your overall income, but if you have a regular salary I’m guessing it’d fall in the 5% range for this additional income (as opposed to the higher rate for professional practice income). That’s how I filed it, anyway, and the tax office didn’t complain.
I don’t believe this would fall under 9B, but like @yyy said it might depend on the specifics, e.g., if it could be considered “lecturing”.
This is my experience here in Taoyuan. I just give a figure to the person at the tax office, no documentation needed. Every Taiwanese person I’ve spoken to about taxes claims that audits are not done on individual taxpayers, and I’m inclined to believe this.
I’d say that money is a red envelope gift and therefore not taxable.
“…However, the tax only applies to total gifts valued at over NT$220,000 (US$7,500) over the course of a single year and individual gifts valued at over NT$100,000.”
Agreed. @Codapop if it makes you feel better, buy a big red envelope and deposit the funds you get each week into it. Tada, no more worries, enjoy your >NT$220k per year gift.
If receipt of the envelope is contingent on a service being performed, it’s not a gift.