You can also setup and run an ENTERPRISE business. This can also issue a fapiao.
This is a 企業社 and not a 公司 and allows people to own and run a small business enterprise. This is what I have done for my own business.
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NT$1.5 million a year… 1,260,001~2,520,000 × 20%
https://www.ntbt.gov.tw/English/multiplehtml/3f18d2625aea4187b0d90e9b929afe4c
Yeah, if you ignore the progressive difference and all deductions…
Using the Quick Calculation of Alien Individual Income Tax for Year 2023, I get a tax payable of NT$ 90,040 (on an income of 1.5 million).
That’s a mere 6% (!!!) of tax. Not twenty…
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That’s sweet. I have a local tax accountant she does company and personal taxes for my wife and I. So I never really pay attention to taxes.
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When I saw the original post, I thought OP might have used the professional practice rate there rather than the normal employee tax rate. I’m not sure though – I guess it would depend on the industry etc.
Interesting read this thread for me. It really shows how complex it is for US citizens and their taxation with the IRS. For those of use who come from countries where we have no tax obligations when not living there it sure makes life easier.
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Oh the professional practice rate is a Taiwan thing, with a fixed rate of around 20% but more things can be deducted. It might also only apply to certain professions too. I don’t know much about it — I just read enough to know I’d probably be worse off counting my income as that, even if I could (and I’m not sure I can).