Hi, tax question, as anyone experienced a similar situation? APRC in Taiwan, living here over 183 days, Ill have a 3 months job experience in Europe, living there, working there, paid there. No incomes in Taiwan at all. Does this income falls under IBT/AMT rules? I need to declare such income in Taiwan if amount less than 7.5 mln NTD? Im confused: income basic tax rule say yes if foreign income over 1 MLN NTD but not if local income + outside income less than 7.5 mln, do I understand it correctly? Thanks in advance
Taiwan’s tax system is mostly territorial except for the AMT/IBT (with income for work being performed from Taiwan counting as local income).
If you actually live abroad in Europe and work there, income should fall under the IBT/AMT rules, i.e. tax free up to 7.5 million in TW.
I’ve also read conflicting information on when exactly one would need to declare this.
In your situation, it might make sense to declare the income voluntarily in TW (no tax due if less than 7.5 million!) and then request a certificate of residence - and use that one to claim back the tax paid in Europe. If you’re lucky, no tax due in Taiwan - and tax in Europe can be refunded. Not sure if the tax authorities in Europe would accept this if no tax actually paid in TW - but certainly worth a try!
Thanks, appreciate, it is similar to my understanding