Taiwan tax filing for Remote Workers

Legal Taxes
1

I am in the final stage of getting my Gold Card approved. I know I am a bit thinking ahead of this. I work remotely for my own corporation in Canada and receive a salary on a T4, which is equivalent to a W-2 in the US. I pay my own payroll taxes, including pension and unemployment premiums.

Once in Taiwan, I will continue working remotely full-time for my Canadian clients. Since I expect to stay in Taiwan for 183 days or more, I will be considered a tax resident there.

My questions:

  1. Since all my income is generated in Canada, where I pay payroll taxes, pension contributions, and unemployment premiums, how will this affect my income tax filing in Taiwan? In other words, I understand that I must declare the income in Taiwan, but does that necessarily mean I have to pay taxes there? I read that if the income is below 1 million TWD per year, taxation may not apply. Is this correct?

  2. Based on my calculations, I will certainly earn more than 1 million TWD per year. Will Taiwan tax me again when I file my taxes? I assume they provide a foreign tax credit to avoid double taxation—can you confirm this? Interestingly, both Taiwan and Canada have nearly identical individual income tax rates based on their respective tax brackets—Taiwan at 20% and Canada at 20.5%.

  3. Would remote work in Taiwan for foreign clients be classified as Taiwan-sourced income or foreign income for tax purposes?

I apologize if my questions are too complex. Perhaps I should consult a professional tax advisor in Taiwan when I arrive in a few months. Thank you for your time!

2

You should consult a professional tax advisor in Taiwan. Their rates are very reasonable and they will set you straight.

That said, the general rule is that you must pay taxes on Taiwan-source income. Taiwan-source income generally includes income that you earn when you are in Taiwan. You will be working in Taiwan. As I understand it, the fact that your services are provided to recipients in Canada or elsewhere is irrelevant to whether your income is Taiwan-source income. The dispositive fact is that you are working in or from Taiwan albeit remotely.

Again, talk to a tax advisor when you come to Taiwan to confirm these rules and their application. This is not intended to be tax advice and should not be relied on as such.

2 Likes
3

Canada and Taiwan do have a tax treaty, but that’s based on my own research from Google and reading through government publications. Whatever the specifics may be, as you mentioned, it’s probably best to seek the help of a tax professional in Taiwan. Thanks a lot!

4

In my view, you definitely need to talk to a tax professional to understand how tax benefits under agreements/treaties and programs like the gold card actually work when applied to the facts of your case. Most of us don’t really know how to do this and get it wrong. Or fail to see things that might be useful in practice.

It’s great to do your own research and read government publications. That way you know that you need to ask someone and what to ask about. After all, you might not ever take advantage of something useful if you didn’t know that it exists.

I suspect that you will flourish in Taiwan. Welcome! And try to ignore some of the negative stuff that gets said on this forum. Taiwan is a real place with real problems and deficiencies. Some people fixate on them too much for reasons I don’t completely understand. Complaining is ubiquitous among foreigners living away from their own countries and not just in Taiwan. It’s almost like a hobby or bonding activity.

2 Likes
5

Are you sure you need to keep paying those as a non-Canadian tax resident…?

6

Thats a good question. Have you thought about opening a company somewhere else like Estonia through their e-residency programme? This way you would not need to pay any socials.

Costs for running a company from there are also very affordable. Not saying you should do it but I would recommend to look into it. :slight_smile:

1 Like
7

Sounds like your income will be generated in Taiwan. It’s about where you are physically located while doing the work, not where your head office or customers are.

8

Why start a company at all?

9

Liability shield. Dividends might be taxed at lower rate. You might need capital from other investors.

10

Sure, but precisely none of these may apply. In my opinion the “start a company” line gets trotted out too much on these boards. You can invoice foreign clients as an individual, and pay your taxes here, and just be fine.

11

Thanks for your encouraging words! This journey has taken years to come to fruition. Three years ago, I hadn’t even heard of the Gold Card. It was only through a chance conversation with some vendors and EVA Air representatives at the CES trade show in Las Vegas—where I was attending—that I learned about it.

Now, I’m at the stage where I need to submit my passport for inspection at TECO in two weeks. So far, my biggest takeaway from this process is that the actual Gold Card application isn’t difficult. In fact, preparing the necessary documents takes longer than submitting the application itself. It’s not necessarily hard—just time-consuming to gather everything.

At this point, I think the real challenge lies in relocating: navigating taxes, legal matters, culture, and the business environment. Figuring out how to adapt and balance between two worlds will take time, conversations, and building a network in Taiwan.

Interestingly, I haven’t come across any negative comments on this forum.

My interactions with the Gold Card office have given me a very positive impression of Taiwan’s bureaucracy (assuming the Gold Card office is indeed a government agency—I’m not 100% sure). There were multiple email exchanges about which category or field I should apply under. Initially, I assumed I belonged in one category but had completely overlooked a better fit. Fortunately, the Gold Card office pointed me in the right direction.

Now, I’m reviewing the Canada-Taiwan tax treaty, and my understanding is that it aims to prevent double taxation. Taiwan provides a foreign tax credit for payroll taxes paid in Canada. However, this must be handled correctly, so consulting a tax professional is essential.

People shouldn’t dwell too much on complaints; otherwise, we end up trapped in a negative mindset. As the saying goes, “If the only tool you have is a hammer, you tend to see every problem as a nail.”