Absolutely right.
I’ve never ever been able to claim a rent deduction, under the unspoken threat of either the lease not being renewed or rent increased.
Pretty shameful that this 1970s era malfeasance still goes on, really.
Hey guys, I just thought I would rehash this thread after a long summer break.
I’m pretty certain that I will be arriving in Taiwan in March 2017.
I will pay 18% tax for 183 days and that will expire sometime at the beginning of September 2017 and from there it will drop to about 5-6% for the rest of the year.
As for the tax exemptions:
85,000 income
90,000 standard
128,000 salary
170,000 parents
As far as i can tell that’s 473,000 exempt from tax. However, that is for the year right? But in 2017 I will only work 9 months so would that be prorated to 354,750 for 2017?
Also, for example if in 2017 I earn 600,000 NTD, would my taxable earnings be
600,000 - 473,000 = 127,000 taxable income so then they take 18% of that?
or
600,000 - 354,750 = 245,250 taxable income.
Sorry if I’m completely off the mark but I’ve never had to do this before.
Also, do you pay 18% tax for the first 183 days of every year that you stay in Taiwan?
Thanks in advance for all your great help!
The employer can withhold 18% for the first six months and then switch to the resident rate (5%), so that’s apparently what most employers do for foreigners, just in case they leave early, and many also reset it every January no matter how long the contract is. If your employer trusts you, it can use the resident rate from the start.
For exemptions and deductions, one of them only changes according to whether or not you’re a senior iirc, but for the other one, you can choose either the standard amount (no documents required) or the list (burden of proof is on you). There’s a bit more you can add to the list, like investment income.
If there’s any month in which you earn less than 1.5 times the Basic Wage (so less than about $30,000), the non-resident rate is 6%. I’ve heard of lower resident withholding rates (i.e. deductions calculated in advance), but your employer probably won’t want to go for that.
Iirc the NTBT (second T is for Taipei) has an online inquiry service that will produce a response in English if you’re willing to wait. You can also visit them in person once you’ve arrived (Zhonghua Rd near Beimen Station). Basically, June to April is their off season.