Taxed at 10%

Legal Taxes
1

Previously, my employer has been withholding tax from us at 6% of our salary. This month, my employer announced that Taiwan government has recently changed the law and that foreigners in Taiwan will be taxed at 10% (starting January 2004). So, what they did was deduct 10% for Oct salary + 4% for Jan + 4% for Feb + 4% for March.

The 4% for April, May and June (plus the 10% for Nov) will be deducted from Nov salary.
The 4% for July, Aug and Sept (plus the 10% for Dec) will be deducted from Dec salary.

Is there truth to the increase to 10% withholding tax?

Thank you in advance for your reply.

2

I too, am taxed at 10% withholding. My employer explained to me that it was based on 6% tax and 4% withholding. The 4% is returned to you at tax time unless you make over the nontaxable amount. I don’t know personally of anyone else who is having the same deductions but I keep very close records of income, taxes, etc paid out and it tallies with hers. I guess that I am not really worried about it at this point because she has been very upfront and above board in all my working issues. Anyone else know anything about this?