I came to Taiwan last November because of quarantine I didn’t work until December. Tax season is coming soon but I’m not sure if I need to file and how to file. My contract ends in July I’m considering leaving Taiwan to take a long break from the burnout. So what steps do I need to take?
Did you actually receive any salary in Taiwan in 2021, or did you get that in January? If the former, it sounds like you should pay the non-resident rate of 18% for 2021, which has presumably already been deducted from your paycheck?
Your 2022 taxes won’t be due until the first half of 2023, so I guess you’d have to file early if leaving before that. You should make an effort to stay more than 183 days if possible, so you get the resident tax rate with deductions and exemptions rather than the non-resident rate without them (it’s a big difference).
When we file in May is it for 2021 Jan to December?
I forget the dates every time
Isn’t it just the calendar year, i.e., Jan. 1 to Dec. 31, based on the received payment date? I thought so.
Yes. So we’ll be filing in a few months for income received in 2021.
I received one day pay in December and that was it for 2021. And yes I have already checked everything I got so far salary wise has been taxed at 18%. It depends what happens in the spring time. I wanted to stay longer to get reimbursed but I can cut my losses and leave if need to. Thanks for the information it looks like I will have to file before I leave.
I think you have to (/are supposed to) file before you leave anyway, but what I was getting at is that the difference between staying <183 days and >183 days is quite large – for 6 months of NT$65k per month, it’s the difference between paying NT$70,200 in tax and nothing (for the latter, I’m assuming that the exemption and deductions aren’t pro-rated to the number of days in Taiwan, but I’m not 100% sure about that and can’t be bothered looking it up right now). Just if you have the choice, staying long enough to get the resident rate is way better.
Yeah I knew what you meant. Thanks for the advice.