Tax Rate

I’ve been working legally for a little over 6 months now (although I’ve been living in Taiwan longer) and had my tax deducted at 20%. Now it’s past 6 months but my boss is still deducting the tax at the higher rate. He says it’s because I left for a holiday less than 6 months ago, so I haven’t been here for the 183 days (details: got ARC 9/2000, left 12/2000 returned a month later 1/2001).

I don’t think he’s cheating me, he’s just a bit clueless i think. Or is he right? How is it figured. Also does anyone have a phone number for English service at the tax department, so I can ring and check myself?

Bri

You won’t get a penny back for the tax year 2000, but you should get some (figure half, my employer withholds 10%) back for 2001.

You have to file a tax return sometime early next year. There should be plenty of posts about this subject elsewhere on this forum. The tax office in Taipei should be very friendly

The taxable year is January 1st to December 31st. Hence, regarding the 183 day figure, you have to be inside the country for 183 days in a year (or more) to be taxed at the lower rate.

Even if you are in the country every day beginning from January 1st, you do not reach the 183 day figure until early July.

However, if you qualify for this so-called (under the Income Tax Law) “resident” status, then you can carry that status directly into the following year, if you continue to live in Taiwan.

Do the 183 days have to be continuous? I was in Taiwan for over 183 days in the previous tax year, but not working for 183 days. Do I qualify? I’m still confused.

PS What is the lower rate anyway?

Bri

The 183 days are cumulative, not consecutive.

The lower rate would generally be 10% or less.

What is meant by the “…or less” bit? Can you qualify for a tax rate lower than 10%???

One more thing, but should I be taxed AFTER or BEFORE all the insurance deductions??

Here is the Taiwan Tax Guide for Foreigners,
I combined the English with the Chinese.

Tax Department contact details are at the bottom of the page.

By the way ‘zajaczek’, your insuarnce deductions should be very small, I only pay $36O per month. On the page is a table which shows you the deductions based on your income. Bur remember that you claim most of it back at the end of the year anyway

Duh!!

Forgot to paste the Tax Guide URL into my previous posting:-)
http://geocities.com/teach_taiwan/tax_guide.htm

I am wondering about this case. I am wondering does this work and is it legal

Say a foreigner works in a company using a business visa given in his/her home country(valid for one year) allowing him/her to do business in the office in Taiwan.
The reason is because he cannot qualify for an ARC or work permit

Now my question is can this person be payed through the company in Taiwan using the bank account that he has from his old ARC…and can the company declare him as being employed when they and he do tax returns.

According to what I have read before the Tax office in Taiwan doesn’t care whether you have a work permit or not to work in a company… what they are concerned with is that you are paying taxes on income derived in the ROC.

and if the police enter the building and try to grab you…are you untouchable as you are there on a business visa and are permitted to do business in the Taiwan Branch of your office located in the ROC… the fact that you are payed or not should not not come into it as the purpose of their raid is to check if you have an ARC to work on those premises

Is this possible method of working in taiwan instead of having your application ofor an ARC rejected
Any comments … thx

I think that you are somewhat confused about visas. A visa valid for a one year or longer) is “long term”, and with that you would get an ARC. A visa valid for one month, two months, or just a few months, perhaps renewable, perhaps not, is “short term”, the so-called visitor visa. With that there is no work permission and no ARC. Hence, the normal understanding is that if you are working it is for a minimum of one year.

You seem to have indicated that you (or your employer) applied for an ARC and got a rejection. What were the reasons stated?

Over and above these comments, I find your situation quite confusing. Perhaps you can provide more details on what you want to do and what your current status is.

I am unsure if my visa will be rejected but I think yes it may be, on the grounds of work experience or lack of. However the company will try for me, and it is a foreign owned company - is this a good or a bad thing? …I don’t know

I am looking into alternatives if this happens.

I phoned the Taiwan “embassy” in my country and they told me if i got a letter from the company in taiwan stating something to the effect that if I travel often to Taiwan in one year(on business), they would have no problems gving me a year Business visa.
They can’t give me longer as this is a reciprocated agreement between our countries.

What I am curiuos is does this entile me to work in Taiwan, get an ARC, get a salary in Taiwan, and pay tax etc

Thanks

Here’s a question:

My husband has had an ARC since 6/2000, but not a work permit. He has been in the country for more than 183 days this year already. His employer is getting him a work permit. Can he be taxed at the 10% rate rather than the 20% because he has been in the country for 183 days, or does it have to be 183 days worth of working?

Thanks for your help.