US Citizen here planning to teach English in Taiwan. I’m wondering about a few things, that I am unsure of.
My wife is a China PRC citizen. Once I got the job and ARC will I be able to then sponsor her visa? Is it reasonable to ask the school I plan to work for to be involved in this process? Or am I on my own? Is it certain that she could get non-working spousal visa?
Does the tax authority care about my income from US sources? Will they ask about it? Since I am paying taxes on it in the US, I’d rather not muck about with Taiwan taxes.
Will there be discrimination and animosity towards my wife based on her being from the mainland?
The short answer is yes they care and you need to file in both places. How much you may or may not owe depends on a lot of things, you may even find your overall tax burden is less, but please don’t come here and become a tax cheat.
Short answer, no, Taiwanese are tolerant, respectful people in general. But she should be prepared to never speak up for China and always to understand that Taiwan is an independent country. Of course she’ll also meet Taiwanese who will say “well we’re all Chinese at the end of the day”.
Interesting…, but it looks like there is no tax treaty between the US and Taiwan which means it would be a real shit show. As a high earner it seems I’d be paying 40% or 45%. I can’t seem to find an answer to it. So, I’d pay 45% to Taiwan and then hope to claim a foreign tax credit with the US IRS?
Thanks, that’s useful. She’s been living in the USA for 7 years now and she’s not exactly very patriotic about China. She definitely doesn’t think Taiwan should be part of China so that’s no problem. My impression of the Taiwanese is that they largely rational and tolerant, but I only traveled there myself, not with her.
I don’t really think there’s a need for her to go out of her way to adjust her accent or anything like that. If she don’t act a fool then everything will be fine.
Also, pay your taxes. The Taiwanese IRS will track you down. Or the next time you try to visit the US, they won’t let you leave.
We sound similar…but you really need to hire an expert and let them tell you what your situation would be and what credits you might be entitled to. I don’t pay any tax to the US after my obligation to Taiwan. Just file and report the income you are supposed to report, both here and the US.
Using the law to your advantage is not cheating: it is legal (tax avoidance). Lying on forms about your income (e.g., omitting certain income) is cheating and illegal (tax evasion).
OK. That’s helpful. I guess I am worried the US will try to make trouble for me as my tax burden is close to $1300 USD per DAY. I’m nervous about claiming such a huge foreign tax credit. Also the difference between my current rate (37%) versus the Taiwan upper rate (45%) is considerable.
I really want to get out of the US and I love Taiwan. I just don’t want to get “out of the frying pan, and into the fire”.
Yeah… I know some countries don’t care about worldwide income of non-citizens. I guess Taiwan is not one of them. The US is definitely not… I’ll never escape their grasp.
To be clear, I do not know about Taiwan tax law at all. However, if you’re making over a million dollars a year, I’d suggest hiring a tax specialist.
Typically there are different rules for income earned domestically and overseas, and typically you first pay the taxes of the country where the income is earned and then the taxes of the other country. Your case is not typical and seems complex as your US income probably isn’t salary based (and if it is you’ll likely need to address this in a work visa).
OK… good advice. I’ve investigated moving to a few countries in depth and hired tax consultants just to give me an idea. It seems like the situation I’d be in with Taiwan is pretty complex. Knowing that my wife could most likely live there with me is good to know. The tax stuff I’ll find someone to advise me. 40% upper rate would be OK, but 45% is too much. Thanks!
Haha. It’s crazy. I was dirt poor 5 years ago too. I live on $100 a day or less. The government uses 13x more of my money than I myself use. Of course I get to save alot. No complaints really, but it’s a new set of problems.
