Taiwan Taxes

yep, totally agree. installments don’t earn points

Incidentally, just came across this while looking for something else - CTBC is included.

cctax

Full version here: https://download.tax.nat.gov.tw/ifn/UserGuide.pdf

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How do you file taxes if you have no paperwork. Been in Taiwan last year 4.5 months, so only need to pay taxes on a small salary my LTD pays out to myself.

In Cyprus you don’t get anything on paper. I pay myself the minimum allowed the rest is dividend. So 24.000ntd per month or so. Or better just drop it all together.

The only thing I can print out is an email stating my tax calculation in Cyprus…

I didn’t even bother to send that money every month but only once per year all months … so bank statement won’t do either…

This is going to suck, because you’ll need to pay the non-resident rate of 18% (I think) with no deductions or exemptions. From what I understand, that’ll only be for the salary component paid while you were in Taiwan though.

The tax office has a list of required documentation, but I’ve found them to be quite flexible if you can’t fully comply (my attitude was along the lines of “this is what I have - do you want the tax or not?” :roll_eyes:).

There’s some more info in this thread:

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Yes it will only be 18 percent of 3600 euros. Do you have to go in person or can you File online?

I mean they won’t even know I had any salary. I doubt they can get any information from Cyprus.

You should be able to file online, but you’d of course need to input the details of foreign income into the tax software manually. After submission, you get a form to print out allowing you to pay in a bank/convenience store and you’re supposed to send supporting evidence by mail within 7 days or whatever. A couple of caveats:

  • You need some form of ID to register with the tax software (I think it allows an NHI card, an Alien Citizen Digital Certificate, and 2-3 others - not sure). I remember you’re here on a gold card, but I’m not sure whether you have the first two. If not, it’d likely be easier to go to the tax office.
  • As you say, you don’t have the supporting documentation. They’ll expect that to be mailed in, and they may contact you later if they think there’s a problem with what you submit (it took them 5-6 months to do that for me). I think it’d be easier for you to just go there and explain your situation and get it sorted. I took my documentation there in person anyway because it was maybe 50-60 pages of invoices etc. and I doubted that they’d understand what I was submitting if I just mailed it (plus it was just as convenient to go to the tax office as to the post office).
  • I think your tax will be slightly higher than the NT$20k you’re allowed to pay in a convenience store (IIRC), so you’ll likely need to pay in a bank anyway.
  • IIRC, you’re in Taichung. This might be outdated info nowadays, but I understand that the tax offices in other cities are less familiar with the rules for foreigners/overseas income compared with the tax office in Taipei. They might end up telling you something like you don’t need to pay tax on foreign income below NT$6.7 million (incorrect), in which case you can shrug and move on, safe in the knowledge that you tried to pay taxes and a government employee told you they didn’t want it.

Overall, I think it’d be easier and faster going in person, but online might also be doable.

Yeah, I don’t think they’d know if you don’t tell them. That’s your decision, of course. :whistle:

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Answering that one: I just tried choosing the “pay by credit card” option without taking to my bank first. Some minutes later, I received the following notification:

(Rough meaning according to Google Translate: You’ve gone over your credit limit. However, we’ve still approved your transaction. But now you need to pay in full!)

I guess that means I won’t be able to use my credit card for some days now. But if I’m lucky, I’ll get 0.2% back - unless that doesn’t apply to payments over the limit… :whistle:

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Can somebody tell me what the maximum deduction is for a mortgage you are paying? Is it just the interest on a mortgage that the tax-deductible?

That would be sweet if one could basically deduct buying a house from their taxes :sweat_smile:

But no, it’s interest only:

(e) Mortgage Interest Paid on a Loan for an Owner-Occupied Residence: A taxpayer, his/her spouse, and their dependents filing jointly borrowing money from a financial organization to purchase a house or other property in the R.O.C. for use as an owner-occupied residence may deduct the interest paid on the loan from the gross income on one filing unit per year up to a limit of NT$300,000. Such a deduction is limited to one house or other property only. However, if the taxpayer also claims a special deduction for savings and investment (please refer to item (c) of C. of (2) of Article 12), the special deduction should be subtracted from the above-mentioned interest.

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It’s my understanding that rent expenses can be deducted in Taiwan so I thought maybe there was a mortgage deduction as well. Anyway, thanks for answering my question. I guess it’s not much of a deduction at all!

Every bit helps.

For renters out there (not @marasan ): For the rent deduction: for 2023 taxes, we’re still with the old system (maximum deductible is NT$120,000)—but changes are reportedly coming for the 2024 tax filing season, upcoming in May 2025 . . .

Guy

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Note that the limit is also not that high:

Rental Expense: Rent for housing in the R.O.C. paid by a taxpayer, his/her spouse, and their lineal dependents filing jointly and used as their own residence rather than for business or performing professional services, may be deducted from their consolidated income up to and within a limit of not more than NT$120,000; however, no deduction can be claimed if he/she also claims the deduction for mortgage interest paid on a loan for an owner-occupied residence. To deduct the rental expense, the following documents must be attached:

From my understanding, the idea behind the rental deduction is to catch landlords who aren’t paying income the on the rent. So overall that should be a net positive for the tax authorities.

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Yeah, 10,000nt per month.

Makes sense. I’m so naive, I actually thought this was an attempt to reduce the tax burden on people.

Wait until you find out that the Fapiao-lottery was not primarily introduced to give money back to the tax-payers :upside_down_face:

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Filed my taxes today. Wow, super easy. Took my documents from last year, plus the 2023 document from my employer. Handed over that and the 2 Taiwan ID cards. Told her all my information is the same as last year. She had no questions, finished in 2 minutes.

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Yeah it’s much better to file in person. You won’t get asked tricky questions like can you certify whether you have a CFC.

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I like to head over to Heritage Bakery for a cinnamon roll and coffee after the arduous 15 mins waiting for the staff to fill out my form and submitting my payment. It’s a nice reward for a job well done.

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A PSA for forumosans with tax obligations in Taiwan:

We’re heading into the tax filing season in Taiwan—typically completed in May. Amidst the US initiated tariff chaos, the tax authorities in Taiwan have extended our filing deadline by a month, similar to what they did during the COVID emergency. The new filing deadline to square up on 2024 tax obligations is now reportedly June 30, 2025.

Guy

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How on earth are these two things connected?! It’s important to note that delayed filing, even though there’s an extension, will likely lead to delayed return of any overpayment so best get it done in May unless you expect a big bill.

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The disruptions to markets and to exports apparently got the attention of the central government in Taiwan—hence the grace period.

Of course if one wishes to file early, nothing would be stopping one from doing so.

Guy