Self-employed NHI premiums expensive with children?

Work Working in Taiwan
1

Hi

I am looking to be self employed soon. I can’t figure out the NHI premium calculation as it seems like it is going to be extremely expensive.

I have my wife and three children as dependants.

From my understanding of this page:
https://www.nhi.gov.tw/english/Content_List.aspx?n=B9C9C690524F2543&topn=46FA76EB55BC2CB8

The calculation should be:
Monthly salary * 4.69% (current premium rate) x 100% (self employed contribution rate) * (1 + 3) (max 3 dependants)

Which is essentially 4.69% * 4 = 18.76% of monthly salary.

That seems way too high.

Does anyone have any experience with this before?

Thanks.

Michael

2

If your wife is Taiwanese, then you can get coverage under her, as can your children even as self-employed. Extremely cheap.

If all four of you are foreigners (non-Taiwanese), yet you somehow can work legally here, then someone else may have the exact calculation.

I’m in the former camp, so I know that part well.

3

@KHHville My wife is Taiwanease and is not employed. I am not sure what you mean as we file a combind tax return and I claim her and the children as dependants. Is NHI not based off that amount?

4

I do the same thing. Wife is unemployed too.
Have her go to NHI building near the train station (if in Taipei City) and change details there to get you under her name for NHI, along with children.
My wife did it for me. (She may even be able to do it at the local district administration building for the district you live in Taipei City).
Monthly fees are super cheap.
If by self-employed you get case work from Taiwanese agencies, firms, etc., then the only time you may have 2% deducted for NHI from any work is if that specific work is over a certain amount.

5

Are you planning to be self-employed with no registered organisation, or an employee of a business entity you own?

6

@KHHville As I understand it you are registering under you wife because she has no income the rates are lower, but is that legal?

@fifieldt I am not sure yet, I would be working for an overseas company (probably on some sort of contract). I have not looked into whether it would be an advantage to me to start a business here to do that or not.

7

I presume your ARC card has it as “spousal visa”, and thus it states in RED chinese letters on the card that you do Not need (or apply for) a work permit to work in Taiwan.
Separately, of course it is legal to register NHI under your wife even if she has no income. She’s Taiwanese and thus her family can be covered through her.

Anyway, we’ve been doing for so many years I’ve lost count, and I’ve filed taxes in Taiwan with her and children as dependents.

You should have her go to NHI, and they’ll tell her pretty much the same thing.
It’s quite a simple procedure to do so.

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8

A complex topic indeed :slight_smile: It does, however factor into your calculation rather heavily. If you were an employee of your own company, you get into a 10% government/60% company/30% employee payment split. The company portion doesn’t factor in how many dependants the employee has (it’s 1 + 0.61 at the moment for that bit of the calculation).

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