I guess someone who is having/ has had TARC can shed some light on this. I am on a JFRV so every year during first six months; my company cuts 20% tax from my salary, but for the second half, it is just 6% as R.O.C citizens, and that is a normal procedure. And here is what I would like to know, “How do they calculate the tax returns for someone on a TARC?”
It’s 20% for non-residents. You have a residence visa, therefore you are a resident and don’t pay 20%.
There’s no such thing as a TARC.
[quote=“Big Fluffy Matthew”]There’s no such thing as a TARC.[/quote]Yes, there is. It’s called a Taiwan Area Residence Card and the individuals who get them are the ones who have given up their original citizenship and are going through the naturalization process. They will keep the TARC until they have completed one year residence from giving up their citizenships and then they will receive their Taiwan citizenship as well as the regular Taiwan National Identification Card.
What Pioneer Kuro wants to know is how his taxes are going to be withheld during this one year in limbo where he is a “stateless person” with the TARC. Will he be withheld at the 20% rate for the first 6 months like a foreigner with an ARC or an APRC or will he be withheld at the rate of a Taiwanese citizen, even though technically he isn’t one until he’s completed his one year stateless person sentence.
Lastly, how does he file his tax return? As a Taiwanese citizen even though he’s not really a citizen until after his one year wait? As an ARC/APRC resident foreigner, even though he’s not really a foreigner after he’s given up his original citizenship and he’s just marking time until he gets his full citizenship. This is good information to know.
We need Coolingtower, Satellite TV, or Poagao to answer this question for us because they’ve already been through it.
Sorry, that was like 16 years ago, and even if I could remember, the rules have probably changed since then.
Thanks for the replies guys, here is something funny that I would like you to know. Out of curiosity I called the tax bureau yesterday hoping to get a clear answer. But, believe me I couldn’t find someone who knows what a TARC is? What a surprise!
[quote=“Big Fluffy Matthew”]
There’s no such thing as a TARC.[/quote]
Read the first post of the following thread, you will get a lot of info about TARC.
PK that is not at all suprising…that’s we have to come to forumosa to find anwers to our questions!!
when I was applying for my PARC I needed the tax certificate for the past 3 yrs and they could not issue the same. They said there is no record. Then I dug and dug and finally found out that for @ 13 yrs they entered my details as Surname-Name-Father’s name…then in the middle someone changed it to Name-Father’s name-Surname…so as per their computer recoards I was two different people and hence they could not give me a tax certificate for 3 yrs…I had really gone crazy at that time!!
i hope i can get my ID card before May 31st so that when I go to apply for taxes I will have my ID card in hand and not the TARC!!
Ok, so there is such a thing as a TARC 
live and learn…but don’t worry 90% of the locals also don’t know what the hell is a TARC!!..like PK said even the guys at the tax office don’t know!!
you not knowing is okay…them not knowing is scary!!!
OT, but, really you to go a whole year without a passport? 
What if you have a serious illness or death in your family outside of Taiwan? Will they issue with some sort of emergency travel document?
Is it like that when you apply for citizenship of other countries too? Or is this a special only-in-Taiwan scheme dreamt up by those slippery MOI bureaucrats?
no once you get the TARC you can apply for the passport and you can travel…only thing is that some countries need a visa and for that they may ask for the ID card and since you still do not have the ID card you may not get the visa for that particular country…
like most of the guys before us, we new lot who have got our TARC are just sitting tight for one year (after getting the TARC) coz once that year is over we can get the ID card…
everything relating to the TARC and citizenship is in the thread which PK mentioned…
[quote=“kitkat”]OT, but, really you to go a whole year without a passport?
What if you have a serious illness or death in your family outside of Taiwan? Will they issue with some sort of emergency travel document?
Is it like that when you apply for citizenship of other countries too? Or is this a special only-in-Taiwan scheme dreamt up by those slippery MOI bureaucrats?[/quote]
Yes, they can issue a pass or speed up teh passport process in case of emergency. They did it for a friend whose father became ill and she had to go home promptly.
The problem her eis with that renunciation of nationality, leaving you in stateless limbo.
Regarding taxes, for myself, I am planning NOT to work on that year and live off my savings.
Now, according to my logic, a TARC holder is practically a Taiwanese citizen. Hence, logically, should be taxed as one… me thinks.
I am guilty of applying logic here, though.
-“TARC” in not equal to “stateless.” You are stateless from when you sign off on giving up your original citizenship until you receive your TARC. The only “limbo” for TARC holders is that you are an “ROC national” but not yet a “citizen with household registry.” That is why during the TARC period you must fill out a 留動人口 form at your neighborhood police station every 6 months or less. You are no longer an alien resident, so the police form is in lieu of household registry.
-“TARC? What is that”? Immigrants are basically the only people who will ever have one and then only have it for a year, so it makes sense that nobody knows what it is. I even tried to get a PHS phone number using my TARC and I was refused. I told them I was an ROC national and they said “it’s not an ID card, so we can’t process it.”
-True, you can apply for a passport after receiving your TARC, and obtaining a visa with it is that country’s discretion. The only country (I was told) you definitely can NOT visit during your TARC period is China, because you need your ID card in order to get your 台胞證. (台胞證 is a passport-looking thing that is for us Taiwanese to visit China, as China does not recognize Taiwan passports.) On second thought, I imagine it might be possible. I was told it wasn’t possible by a travel agency. I’m guessing they said that because it is their normal process to send a copy of an ID card to HK to get a 台胞證. If it’s hard to get Taiwanese to recognize a TARC, imagine the hassle of trying to convince Hong Kong! If you have a very very good friend who works in a travel agency and is willing to convince HK that you are an ROC national, I’m guessing it is possible, but still not sure. Best is: forget China for a year and you’re fine.
-I paid tax based on who my employers’ documentation said I was. If you get a TARC before the end of the year, make sure your employer gets a copy of it and then processes your 09 tax with your new name and TARC number. It’s not about what card you carry to the tax office in May, it’s “what does your employer call you on your income statement for the specific tax year” and whether or not you have some kind of ID that shows that name.
The USA kept my passport until my renunciation was final, then they hole-punched it and stamped it “CANCELED” and gave it back to me. (They even added “that’s your property”). I paid tax using my English name once by showing them either my old passport or ARC. I imagine things would get ugly if you have more than one job and different employers call you different names.
Important:
My TARC was good for 3 years, I think. You are eligible for household registry and ID card after one year of your TARC issue date. It’s not automatic or mandatory to get your HR and ID on that day. When you get your ID, they take your TARC. (No souvenirs, like old ARCs.) So if you get your TARC in Feb-Apr (after your income statement has been produced), make sure a year later that you don’t hurry to get your ID and then have nothing to prove your TARC number (if your income statement has your TARC number on it).
Cooling Tower!
Now that was an awesome post. Very helpful. Thanks. 
[quote=“Icon”]
Regarding taxes, for myself, I am planning NOT to work on that year and live off my savings.
Now, according to my logic, a TARC holder is practically a Taiwanese citizen. Hence, logically, should be taxed as one… me thinks.
I am guilty of applying logic here, though.[/quote]
Your logic is correct. The 20% tax is to gouge foreigners who want to come work in Taiwan for just a couple months and then leave. A new-arrival ARC holder will be charged 20% tax for the first months and then get 16% back as a return at tax time if they stay longer than the limit. (It was 3 months when I first came in 1996; 6 months now, apparently.) If you don’t want to work for a year, that is fine. But it is not necessary to refrain from working based on avoiding tax issues. Your document of nationality and TARC should be obvious enough that you are Taiwanese and not need to pay high tax. You’ll be fine if you continue working.
welcome back Cooling Tower!! Thanks for all the information!!
CT the above rule ie regarding visiting the neighbourhood police station has been scraped…I had asked the NIA about it when I picked up my TARC and they said no need…if you are going to live in Taiwan for the next whole year then just come back after one year with the TARC, health certificate and some other documents…
[/quote]Important:
My TARC was good for 3 years, I think. You are eligible for household registry and ID card after one year of your TARC issue date. It’s not automatic or mandatory to get your HR and ID on that day. When you get your ID, they take your TARC. (No souvenirs, like old ARCs.) So if you get your TARC in Feb-Apr (after your income statement has been produced), make sure a year later that you don’t hurry to get your ID and then have nothing to prove your TARC number (if your income statement has your TARC number on it).[/quote]
hmmm this makes sense…i will have to be careful because I can apply for my ID card in early May and maybe I will have to declare my taxes first and then apply for the ID card…
thanks CT !!!
Thank you for the fantastic post Coolingtower, one more question here.will the number on the TARC be the same with the one appearing on real ID eventually?
PK no the number will be completely different…SatTV was smart/lucky and was able to convince the lady at the HR to give him the no of his choice…
unless if they have changed the rules again between now and the time when SatTV and CT got their ID cards…
PK no the number will be completely different…SatTV was smart/lucky and was able to convince the lady at the HR to give him the no of his choice…
unless if they have changed the rules again between now and the time when SatTV and CT got their ID cards…[/quote]
Thanks for the reply Speed_maniac, yeah, I know that Sat.Tv chose his own ID number, I read somewhere. It would be great, if we would also be allowed to choose our own numbers. But that wasn’t what I meant. Sorry my bad. What I meant was, “Can the number that is appearing on TARC be considered as your ID number? And how many numbers are there? Is the first letter in English and then the others are in digits ( like H123456789)??? Thank you