Simple question on taxes

Hi everyone, my gf and i are considering moving to taiwan at the end of summer cos i’ve got a job offer that pays TWD125K per month. how much would i actually get after all taxes and deductions? my employer will be handing my tax affairs.

Also, can anyone provide insights to the cost of renting a spacious 2-3bedroom apartment within 15min (by public transport) of the city centre? How much would the same apartment cost in tien mu? thanks for your help!

What is the job?

The rule of thumb for taxes is - first 6 months deduct 20%, then on deduct 6%. After your first year you will get a rebate of 14% for the first six months. I’m not sure whether Taiwan has tax brackets where by the more you earn the more you pay. There are other deductions too, but they are minimal - health insurance for example is $344NT a month. Perhaps someone else can answer the tax question for me. 125K a month seems like a lot. Good luck.

Limey

Health insurance is $344 only if your company claims your monthly salary as being $24001 - 25200/monthly to the NHI. If his company claims his true salary (not likely) he would pay $1650/monthly for insurance.

thanks for the replies. 20% is more than i had anticipated, but it’s nice to know that i’ll get it back later. i haven’t signed any contract yet so the job is still a big IF so please understand if i decline to say what it is.

You are only allowed to claim back taxes for a given year if you spend half of the year (183 days or more) in Taiwan.

If you come to Taiwan after June 30 then you would not be able to ‘make’ the 183 days quota, and all of the 20% tax you pay would not be refundable.

Similarly, if you come before June 30 but leave Taiwan for whatever reason (say a business trip) the days spent out of the county are deducted which could mean you don’t make the quota.

There is a sliding scale for taxes and you should expect to pay a higher rate (10% I think) for part of your salary.

Taxes are dead easy here and there’s a website that explains the laws on foreigners in English. Don’t have link handy, but pretty sure you could google and get it.

Please look through the housing forum or use the search function to answer that question. Obviously the cost also depends if you want to rent furnished or unfurnished.

anyone got a link for Taiwan’s tax brackets?

ok I found it

Brackets (Unit: NT$) Rate
0-370,000…6%
370,001-990,000…13%
990,001-1,980,000…21%
1,980,001-3,720,000…30%
3,720,001 and over…40%

A question:

If you earn say $1,100,000 in a year, is the whole amout taxed at 21%, or just that portion over $990,000 ?

[quote=“Redmenace”]A question:

If you earn say $1,100,000 in a year, is the whole amout taxed at 21%, or just that portion over $990,000 ?[/quote]

Just the portion over $990000 after deductions and expenses. The portion below that would be taxed and 6% and 13% for the income within those brackets.

Brackets (Unit: NT$) Rate
0-370,000…6%
370,001-990,000…13%
990,001-1,980,000…21%
1,980,001-3,720,000…30%
3,720,001 and over…40%

so if you were unemployed for a year you still need to pay the 6% tax? hmm but I mean you didn’t have any job…

[quote=“ironfist”]Brackets (Unit: NT$) Rate
0-370,000…6%
370,001-990,000…13%
990,001-1,980,000…21%
1,980,001-3,720,000…30%
3,720,001 and over…40%

so if you were unemployed for a year you still need to pay the 6% tax? hmm but I mean you didn’t have any job…[/quote]

But if you were unemployed you would have an income of zero dollars…

But if you were unemployed you would have an income of zero dollars…[/quote]

Not to mention that the tax is effective after deductions and exemptions.