OK, what exactly are the tax ememptions the foreigners in Taiwan are entitled to when filing taxes? From what I can gather they are:
NT$ 44K standard single persons allowance
NT$ 74K ARC holders exemption
But my employer (a big chain) tells me that there is also another NT$75K allowance entitled: Salary and Wages Deduction.
What exactly is the truth? Thanks for the info in advance…
You can get a look at the exemptions here:
ntat.gov.tw/english/informat … .asp?no=11
i dont know how accurate this is but i based my tax return on the basis of this last year it was fine.
i dont know if there are any apart from this .
It says that each person that gets a Salary gets a NT$75K exemption. However, I get paid by the hour despite being paid monthly. My salary is declared monthly to the government by my employer. Does this classify my income as a salary or a wage?
Why isn’t there any mention of deductions for a retirement fund? Does anyone know anything about this? In the US it is US$3,000 per year for an IRA. No such thing in Taiwan?
You can deduct your parents if they are 65 or over; an even bigger deduction kicks in when they turn 70. (I think the lower age allowed you to deduct NT$75,000 from your taxable income; the higher was NT$170,000.) You need their “alive certificates” – I had them get a notarized document saying they were still living; the woman who took my form at the tax office said I didn’t even need anything that official - just something to prove they were still alive. You also need your birth certificate that shows you are related to them. You may or may not need to show a bank transfer that shows you sent money to their account.
My wife and I are claiming her parents (she’s Taiwanese). That’s all good, but it would be nice to invest and have a deduction directly from that. I guess with some juggling you get the same thing, though. By the way, are you using this deduction for parents that are non-Taiwanese? It seems from your post that your are. I didn’t know this was possibe. (I’m assuming by this deduction you’re referring to financial gifts to parents and not anything related to investing.)
My wife and I are claiming her parents (she’s Taiwanese). By the way, are you using this deduction for parents that are non-Taiwanese? It seems from your post that your are. I didn’t know this was possibe. (I’m assuming by this deduction you’re referring to financial gifts to parents and not anything related to investing.)[/quote]
Yes, I claimed a deduction for my non-Taiwanese parents. You don’t need to prove you are supporting them; you just have to prove they are still alive.
I am confused by this website.
I assume I will get the $74k standard taxpayer deduction and the $44k standard deduction but can I also get the $75k deduction for recieving wages/salary?
I think (and hope!) this is the case but I’m still a little unclear. Anyone know?
Just did my return and got exactly the same amount I had calculated with the following deductions considered:
44K single person
74K for holding ARC
75K for being in receipt of salary.
Look on your tax statement and if the salary box is checked you will get the extra 75K exemption. My total was 193K of exemptions.
Hey thanks for the link :thanks:
from linked page
quoteRental expense： Rents paid for houses in the R.O.C. in which the taxpayer, his/her spouse and lineal dependent not personally live in rather than used by business for profit but self-lived are deductible. The maximum deduction for rental expense in NT$120,000 for each annual tax return. There is no deduction for individuals who have file
I believe not should have been who.
This is the Chinese version:
[quote]房屋租金支出:納稅義務人及其配偶與受扶養直系親屬在中華民國境內
租屋供自住且非供營業或執行業務使用者,其所支付之租金,每一申報
戶每年扣除數額以十二萬元為限。但申報有購屋借款利息者,不得扣除
。並應檢附1.承租房屋之租賃契約書及支付租金之付款證明影本(如:
出租人簽收之收據、自動櫃員機轉帳交易明細表或匯款證明)。2.納稅
義務人本人、配偶或受扶養直系親屬中實際居住承租地址之一人,於課
稅年度於承租地址辦竣戶籍登記或納稅義務人載明承租之房屋於課稅年
度內係供自住且非供營業或執行業務使用之切結書等文件,以供稽徵機
關核認。[/quote]
Here is a summary:
Rent is deductible up to NT$120,000 per annual tax return if all the following conditions are met:
You will need to provide these documents for proof:
a. A photocopy of the contract.
b. Proof of payment(s) (e.g. photocopies of receipts from the landlord, bank transfer/wire receipts, etc.)
c. One of the following:[ul][li]A copy of the household registration indicating that the taxpayer, the spouse or a direct dependent lives in the premises during the tax year.[/li]
[li]An affidavit by the taxpayer declaring that the premises is a private residence of the taxpayer, his/her spouse and/or a direct dependent during the tax year.[/li][/ul]
Thanks Xiren, :thanks:
If I am an alien resident, legally working in the ROC, paying rent on an apartment I live in (not run a business from), and I can supply all the above, then I can get a further $120,000 deducted from my tax.
Do I understand this correctly? 
Or am I too busy thinking what I’ll buy to understand what it really says? 
Yes , you can claim that money as tax deductable but your landlord must be legit, as the government may also try to follow up you claim to make sure that you are genuine by asking you for receipts. If he does not declare all the rent you pay him, then he will not give you a receipt for the full amount you pay. Maybe he will only give a receipt for the amount he declares as income to the government, or maybe no receipt at all. This is because he could be prosecuted for lying…
this is how it works:
calculate your total income and then deduct from it
74K for self + ( 74 k multiplied by no of persons who are dependend on you)
75K for salary.
44k if you are not claming itemized deductions (read it as rental expense basically)
upto 1,20,000 as rental expense this means if you paid 9000 in rent per month then claim 1,08,000 as rental expense deduction.
however i am not sure of these two cases-:
1.Personal insurance premiums： Deductions shall not exceed NT$24,000 for each person per year
my employer cuts money for NHI can i deduct that
2.Special deductions for savings and investments： Deduction for each household shall not exceed NT$270,000 per year
if i buy stocks can i deduct the money for that.
[quote]44k if you are not claming itemized deductions (read it as rental expense basically)
upto 1,20,000 as rental expense this means if you paid 9000 in rent per month then claim 1,08,000 as rental expense deduction.
[/quote]
So, if the rental expense is claimed, then it negates the 44K?
[quote]however I am not sure of these two cases-:
1.Personal insurance premiums： Deductions shall not exceed NT$24,000 for each person per year
my employer cuts money for NHI can i deduct that
[/quote]
Ggod question.
[quote]
2.Special deductions for savings and investments： Deduction for each household shall not exceed NT$270,000 per year
if i buy stocks can i deduct the money for that. [/quote]
I also wondered this. what exactly is “savings” If I save $100,000 NT can I get a deduction? (back home they tax on the interest.)
Another good question. What is “investment”? stocks, bonds, putting money into a business, what else?
If one bought a house, that is still being built, (so paying rent and house payments) does this mean there is a rent deduction and an investment deduction.
It’s sounds like it’s getting better all the time.
I bought a scooter, because I figured it was cheaper than renting one, because I can sell the scooter later and get some of my money back. I feel it is a good investment. (Does that count too? - :happybiker: - sorry I’m just gettin silly now. Now I’m thinking about the drinks and meals one might buy to charm a young lady, 
etc., etc., etc.)
yes
I asked a friend you can claim it if you are not claiming standard deduction
as my friend tells me , that only intrest on investment can be claimed as exemption , may be if some one can read the chinese can explain better but as far as i understand it , its only intrest on investment but according to the english on the website investment should cover a lot of things (stocks,house etc)
This is really a cool country in terms of tax , back home we would pay 35% , i love taiwan
Now this is a very important point ,given the risk associated with the investment i think goverments world over should offer a 100% deduction on all amount invested to impress the opposite sex.
and a 200% deduction if the investment turnd out to be a bad debt.
take care
Thanks for clearing up those points. Certainly is a cool country as far as tax goes. (but I guess you get what you pay for. (Hospitals and road conditions spring to mind)
Hsinc Wrote:
[quote]given the risk associated with the investment I think goverments world over should offer a 100% deduction on all amount invested to impress the opposite sex.
and a 200% deduction if the investment turnd out to be a bad debt.
[/quote]
If you’re running for office, you’ve got my vote. 
Can I deduct mutual fund transfers? I have a monthly investment plan buying mutual funds through my HSBC Premier account here in Taiwan.
For the deduction of insurance payments (which are generally only worth doing if you are claiming rent, under itemised deductions ,as opposed to the standard 44K) you simply ask your employer for a certificate detailing the amount you have paid. Some generate it automatically and send it with your tax forms, others will process it on request. I imagine from the response I’ve got in the past that this is a pretty standard request. No idea how this might apply to private insurance, but I imagine that the company would issue you with a tax reciept?
By the way, if you hospitalised, or have considerable medical expenses over the course of a year this is also deductible under the itemised deductions category. You just present your reciepts from the doctor/hospital when you file.
Kitkat
[quote=“kitkat”]No idea how this might apply to private insurance, but I imagine that the company would issue you with a tax reciept?
[/quote]
They do.